PROPOSED RULES Before an agency may permanently adopt a new or amended section or repeal an existing section, a proposal detailing the action must be published in the Texas Register at least 30 days before action is taken. The 30-day time period gives interested persons an opportunity to review and make oral or written comments on the section. Also, in the case of substantive action, a public hearing must be granted if requested by at least 25 persons, a governmental subdivision or agency, or an association having at least 25 members. Symbology in proposed amendments. New language added to an existing section is indicated by the code. [Brackets] indicate deletion of existing material within a section. TITLE 1. ADMINISTRATION PART I. Office of the Governor CHAPTER 3.Criminal Justice Division SUBCHAPTER A.Criminal Justice Division-General Powers 1 TAC sec.3.5 (Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Office of the Governor or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Office of the Governor proposes to repeal the following sections under Chapter 3, Subchapter A sec.3.5. Subchapter B sec.sec.3.125, 3.225, 3.325, 3.425, 3.525, 3.625, 3.660, 3.725, 3.925, 3.955, 3.1025. Subchapter C sec.sec.3.4030, 3.4045, 3.4065, 3.4090, 3.4130, 3.7005. The Office of the Governor proposes amendments to Chapter 3, Subchapter B sec.sec.3.110, 3.115, 3.150, 3.160, 3.165, 3.180, 3.185, 3.210, 3.215, 3.240, 3.250, 3.260, 3.280, 3.285, 3.310, 3.315, 3.350, 3.380, 3.385, 3.405, 3.410, 3.420, 3.440, 3.450, 3.480, 3.485, 3.500, 3.505, 3.510, 3.515, 3.535, 3.540, 3.545, 3.550, 3.555, 3.560, 3.585, 3.615, 3.635, 3.640, 3.645, 3.685, 3.705, 3.710, 3.715, 3.740, 3.760, 3.770, 3.785, 3.910, 3.915, 3.935, 3.940, 3.945, 3.950, 3.960, 3.970, 3.980, 3.985, 3.1015, 3.1030, 3.1050, 3.1060, 3.1080, 3.1085. Chapter 3 Subchapter C sec.sec.3.2000, 3.2005, 3.2010, 3.3045, 3.3050, 3.3055, 3.3060, 3.3065, 3.3070, 3.3075, 3.4000, 3.4015, 3.4025, 3.4055, 3.4070, 3.4075, 3.4080, 3.4095, 3.4100, 3.4105, 3.4115, 3.4120, 3.4125, 3.4135, 3.4140, 3.5000, 3.5005, 3.6000, 3.6010, 3.6015, 3.6020, 3.6025, 3.6030, 3.6040, 3.6045, 3.6050, 3.6055, 3.6060, 3.6065, 3.6070, 3.6075, 3.6080, 3.6090, 3.6095, 3.6100, 3.7000, 3.7010, 3.7015, 3.7020, 3.8000. The Office of the Governor proposes new Subchapter A sec.3.5, Subchapter B sec.sec.3.190, 3.295, 3.395, 3.490, 3.495, 3.590, 3.696, 3.790, 3.990, 3.11000, 3.11005, 3.11010, 3.11015, 3.11020, 3.11030, 3.11035, 3.11040, 3.11065, 3.11080, 3.11085, Subchapter C sec.sec.3.2020, 3.3066, 3.3067, 3.4145, 3.4150, 3.4155, 3.5004, 3.6105, 3.6110, 3.6115, 3.6120. Subchapter D remains unchanged. Subchapter A concerns Criminal Justice Division-General Powers. Subchapter B concerns Fund Specific Grant Policies. Subchapter C concerns General Eligibility Requirements. Subchapter D concerns Criminal Justice Division Advisory Boards. This Chapter clearly identifies, defines, and provides other information on important policies, community planning, application submission guidelines, budget information, grant administration guidelines, program monitoring and auditing, funding sources, advisory boards, governing directives, and other relevant statutes. Tom Jones, Director of Accounting for the Criminal Justice Division has determined that in general these rules do not have any fiscal impact on the state. The funds remain stable and the method for allocating funds on a regional basis has not changed. Mr. Jones also has determined that for the first five year period the proposed rules will have no anticipated economic cost to persons or small businesses. Comments on the proposed chapters may be submitted to Pamela Brown at the Criminal Justice Division of the Governor's Office, P.O. Box 12428, Austin, Texas 78711. The repeal is proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.5. Applicability. 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 July 23, 1998. TRD-9811663 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 The new rules are proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.5. Applicability. These rules shall apply to applications and grants for the 1997 Texas Narcotics Control Program applications that begin on or after June 1, 1998, Violence Against Women Act applications that begin on or after June 1, 1998, Victims of Crime Act applications that begin on or after July 1, 1998, Criminal Justice Planning (421) Fund applications that begin on or after September 1, 1998, Safe and Drug-Free Schools and Communities Act applications that begin on or after September 1, 1998, Title V Delinquency Prevention Fund applications that begin on or after April 1, 1998, Crime Stoppers Assistance Program applications that begin on or after November 1, 1998, Residential Substance Abuse Treatment applications that begin on or after September 1, 1998, and Challenge applications that begin on or after September 1, 1998. [These rules shall apply to applications and grants for the 1997 and subsequent state fiscal years. Applications and grants for prior state fiscal years shall be governed by the rules in effect at the time the applications was submitted and/or the grant was awarded. 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 July 23, 1998. TRD-9811690 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 SUBCHAPTER B.Fund-Specific Grant Policies Division 1. State Criminal Justice Planning Fund 1 TAC sec.sec.3.110, 3.115, 3.150, 3.160, 3.165, 3.180, 3.185, 3.190 The new and amendments are proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.110. Eligible Applicants. Eligible to apply for grant funds are regional councils of governments, local general-purpose
    units of government, universities and colleges, independent school districts, regional education service centers, local crime control and prevention districts, state agencies, private nonprofit corporations, [and] Native
      [native] American tribes , and faith- based organizations
        . [When a nonprofit corporation applies for a local grant, they must show in their application that the local government does not wish to apply for funds on their behalf because such action is not feasible.] Faith-based programs with a legal nonprofit status and a tax exempt status granted by the Internal Revenue Service are eligible to apply for CJD funding sources where nonprofit corporations are eligible. These programs may not use grant funds, matching funds, or program income to proselytize or for sectarian worship.
          sec.3.115. Submission and Selection Process. (a) All applicants must submit their applications for local or regional grants directly to the appropriate regional council of governments (COG). Applicants should call or write their COG for the correct deadline for applications and for application kits. Applications received after the deadline will not be considered. (b) For local and regional projects, the Criminal Justice Division allocates money to the regional councils of governments through a formula based on population and crime rate. The criminal justice advisory committees take community plans into consideration when determining the eligibility of applications.
            The COGs' executive committees and criminal justice advisory committees assign priorities to applications. The COG submits applications and priority rankings to CJD. CJD makes all final funding decisions based on eligibility and availability of funds. (c) Application kits for statewide projects are available at CJD. Applications must be submitted to the Criminal Justice Division by the first working day in March each year
              . Once applications are received, staff members selected by the CJD executive director review applications for eligibility and cost- effectiveness and rate them competitively. sec.3.150. Professional and Contractual Services. In addition [,] to the general policies referenced in sec.3.3050 of this title (relating to Professional and Contractual Services) CJD will only provide funds for up to 50% of the costs for the design, development, or procurement of computer hardware and software. sec.3.160. Equipment. In addition [,] to the general policies in sec.3.3060 of this title (relating to Equipment) CJD will only provide funds for up to 50% of the costs of equipment purchases. Such purchases may only be made in the first year of funding. sec.3.165. Renovation and Retrofitting. (a) CJD may approve grants for the renovation or retrofitting of existing facilities. These facilities must be used to provide additional beds
                for juvenile detention in compliance with the Texas Family Code. (b) Total charges for renovation and retrofitting may not exceed $100,000 in Criminal Justice Division funds. (c) Grantees must provide a cash match equivalent to the amount of CJD funding. (d)
                  Under no circumstances will CJD approve funs for construction, land acquisition, or supplantation of federal, state, or local funds supporting existing programs or activities.
                    sec. 3.180. Indirect Costs. (a)
                      Applicants without an approved cost allocation plan may receive indirect costs in an amount not to exceed a total of two percent of the total direct costs awarded by CJD. Applicants with an approved cost allocation plan may use it to determine the allowable indirect costs. Personnel expenses included in indirect costs should not be staff positions directly related to the grant, but rather support or administrative staff expenses such as payroll services, legal services, staff supervision, etc. Additionally, such support services may not be listed under direct services if the grantee receives any indirect costs.
                        (b)
                          Grantees may use grant funds as indirect costs if approved in the original grant budget or subsequently through a grant adjustment.
                            sec.3.185. Progress Reports. Each grantee must submit progress reports in accordance with the instructions provided by and in the form prescribed by CJD. The grantee must submit reports only for those activities supported by CJD grant funds, grantee match, and program income. The project director or the authorized official
                              of the grant must sign all progress reports. Progress reports are due twice a year. The first progress report is due 20 days following the end of the sixth month of the grant period. The final progress report is due 20 days following the end of the grant period. Failure to meet these deadlines will result in CJD placing an automatic financial hold on the grantee. CJD will not award a grant for a continuation project unless all progress reports due by the award date are complete, correct, and on file at CJD.
                                sec.3.190. Two-Year Application. Beginning fiscal year 1998, applicants complete a two-year application. If the applicant receives a grant it will be for one year but the applicant will receive automatic consideration for second year funding. In the second year of each two-year cycle, there will be no need for a grantee to complete an additional application, but CJD may require grantees to submit updated attachments, contracts, resolutions, and other information as necessary. CJD will base decisions on continuation applications on the timeliness and thoroughness of reporting, how well the project is meeting its goals, and the outcomes of any CJD on-site visits. 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 July 23, 1998. TRD-9811675 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 1 TAC sec.3.125 (Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Office of the Governor or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The repeal is proposed under Texas Government Code, Title 7, sec.772.006 (a) (11). which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.125. Continuation Funding Policies. 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 July 23, 1998. TRD-9811664 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 Division 2. Juvenile Justice and Delinquency Prevention Act Fund 1 TAC sec.sec.3.210, 3.215, 3.240, 3.250, 3.260, 3.280, 3.285, 3.295 The new and amendments are proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.210. Eligible Applicants. Eligible to apply for grant funds are regional councils of governments, local general-purpose
                                  units of government, universities and colleges, independent school districts, regional education service centers, local crime control and prevention districts, state agencies, nonprofit corporations, [and] Native
                                    [native] American tribes, and faith based organizations. Faith-based programs with a legal nonprofit status and a tax exempt status granted by the Internal Revenue Service are eligible to apply for CJD funding sources where nonprofit corporations are eligible. These programs may not use grant funds, matching funds, or program income to proselytize or for sectarian worship.
                                      sec.3.215. Submission and Selection Process. (a) All applicants must submit their applications for local or regional grants directly to the appropriate regional council of governments (COG). Applicants should call or write their COG for the correct deadline for applications and for application kits. Applications received after deadline will not be considered. (b) For local and regional projects, the Criminal Justice Division allocates money to the regional councils of governments through a formula based on population and crime rate. The COGs' executive committees and criminal justice advisory committees assign priorities to applications. The COG submits applications and priority rankings to CJD. CJD makes all final funding decisions based on eligibility and availability of funds. (c) Application kits for statewide projects are available at CJD. Applications must be submitted to the Criminal Justice Division by the first working day in March each year
                                        . Once applications are received, staff members selected by the CJD executive director review applications for eligibility and cost- effectiveness and rate them competitively. sec.3.240. Decreasing Funding Policy. (a) The decreasing funding ratio provides for CJD funding of 100% of costs in the first year. The first-year grant award, regardless of previous or current funding source, sets a benchmark for all other funding decisions. In the second year the grantee is eligible for 80% of the benchmark amount; in the third year the grantee is eligible for 60% of the benchmark amount; in the fourth year the grantee is eligible for 40% of the benchmark amount; in the fifth year, the grantee is eligible for 20% of the benchmark amount. No project under this policy will be considered for sixth- or subsequent-year funding unless the executive director of the Criminal Justice Division, under unusual circumstances, waives this policy in writing. (b) Under this policy, the grantee is responsible for continuing a level of service that is, at a minimum, what it provides in the first year of funding. This is not a cash match requirement, however, and the grantee is not responsible for accounting for any funds other than those directly granted by CJD or earned as program income. (c)
                                          [(d)] Projects to regional councils of governments for planning purposes are exempt from this rule. CJD may make further exemptions of this policy for other types of projects administered by regional councils of governments, if CJD determines that continuing such a project is crucial for the region. [(c) Grants with original fiscal years of funding of 1994 or before are exempt from the benchmark policy and follow rules in effect at the time of original funding. Continuation funding, however, is not guaranteed.] sec.3.250. Professional and Contractual Services. In addition [,] to the general policies in sec.3.3050 of this title (relating to Professional and Contractual Services), CJD will only provide funds for up to 50% of the costs for the design, development, or procurement of computer hardware and software. sec.3.260. Equipment. In addition [,] to the general policies in sec.3.3060 of this title (relating to Equipment), CJD will only provide funds for up to 50% of the costs of equipment purchases. Such purchases may only be made in the first year of funding. sec.3.280. Indirect Costs. (a)
                                            Applicants without an approved cost allocation plan may receive indirect costs in an amount not to exceed two percent of the total direct costs awarded by CJD. Applicants with an approved cost allocation plan may use it to determine the allowable indirect costs. Additionally, services appropriate to indirect costs may not be listed under direct services if the grantee receives any indirect costs.
                                              (b)
                                                Grantees may use grant funds as indirect costs if approved in the original grant budget or subsequently through a grant adjustment.
                                                  sec.3.285. Progress Reports. Each grantee must submit progress reports in accordance with the instructions provided by and in the form prescribed by CJD. The grantee must submit reports only for those activities supported by CJD grant funds, grantee match, and program income. The project director of the grant must sign all progress reports. Progress reports are due twice a year. The first progress report is due 20 days following the end of the sixth month of the grant period. The final progress report is due 20 days following the end of the grant period. Failure to meet these deadlines will result in CJD placing an automatic financial hold on the grantee. CJD will not award a grant for a continuation project unless all progress reports due by the award date are complete, correct, and on file at CJD.
                                                    sec.3.295. Two-Year Application. Beginning fiscal year 1998, applicants will complete a two-year application. If the applicant receives a grant it will be for one year but the applicant will receive automatic consideration for second year funding. In the second year of each two-year cycle, there will be no need for a grantee to complete an additional application, but CJD may require grantees to submit updated attachments, contracts, resolutions, and other information as necessary. CJD will base decisions on continuation applications on the timeliness and thoroughness of reporting, how well the project is meeting its goals, and the outcomes of any CJD on-site visits. 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 July 23, 1998. TRD-9811676 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 1 TAC sec.3.225 (Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Office of the Governor or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The repeal is proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.225. Continuation Funding Policies. 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 July 23, 1998. TRD-9811665 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 Division 3. Title V Delinquency Prevention 1 TAC sec.sec.3.310, 3.315, 3.350, 3.380, 3.385, 3.395 The new and amendments are proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.310. Eligible Applicants. Eligible to apply for grant funds are regional councils of governments, local units of governments, and [native] Native
                                                      American tribes. sec.3.315. Submission and Selection Process. (a) All applicants must submit their applications for local or regional grants directly to the appropriate regional council of governments (COG). Applicants should call or write their COG for the correct deadline for applications and for application kits. Applications received after the deadline will not be considered. (b) The councils of governments' executive committees and their criminal justice advisory committees review and give a priority assignment to each application. The council of governments then submits applications and priority rankings to the Criminal Justice Division. There is no set funding allocation to the COGs under these funds. CJD takes the priority rankings of the COGs into account, but is ultimately responsible for making all funding decisions. CJD bases decisions on eligibility and the geographic area's need for services. (c)
                                                        Application kits for statewide projects are available at CJD. The original and one copy of applications are due to the Criminal Justice Division by the first working day in March each year. Once applications are received, staff members selected by the CJD executive director review applications for eligibility and cost-effectiveness and rate them competitively.
                                                          sec.3.350. Professional and Contractual Services. In addition [,] to the general policies in sec.3.3050 of this title (relating to Professional and Contractual Services) CJD will only provide funds for up to 50% of the costs for the design, development, or procurement of computer hardware and software. sec.3.380. Indirect Costs. (a)
                                                            Applicants without an approved cost allocation plan may receive indirect costs in an amount not to exceed a total of two percent of the total direct costs awarded by CJD. Applicants with an approved cost allocation plan may use it to determine the allowable indirect costs. Additionally, services appropriate to indirect costs may not be listed under direct services if the grantee receives any indirect costs.
                                                              (b)
                                                                Grantees may use grant funds as indirect costs if approved in the original grant budget or subsequently through a grant adjustment.
                                                                  sec.3.385. Progress Reports. Each grantee must submit progress reports in accordance with the instructions provided by and in the form prescribed by CJD. The grantee must submit reports only for those activities supported by CJD grant funds, grantee match, and program income. The project director of the grant must sign all progress reports. Progress reports are due quarterly. The last report is due after the end of each three month reporting period. Failure to meet these deadlines will result in CJD placing an automatic financial hold on the grantee. CJD will not award a grant for a continuation project unless all progress reports due by the award date are complete, correct, and on file at CJD.
                                                                    sec.3.395. Two-Year Application. Beginning fiscal year 1998, applicants will complete a two-year application. If the applicant receives a grant it will be for one year but the applicant will receive automatic consideration for second year funding. In the second year of each two-year cycle, there will be no need for a grantee to complete an additional application, but CJD may require grantees to submit updated attachments, contracts, resolutions, and other information as necessary. CJD will base decisions on continuation applications on the timeliness and thoroughness of reporting, how well the project is meeting its goals, and the outcomes of any CJD on-site visits. 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 July 23, 1998. TRD-9811677 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 1 TAC sec.3.325 (Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Office of the Governor or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The repeal is proposed under Texas Government Code, Title 7, sec.772.006 (a) (11). which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.325. Continuation Funding Policies. 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 July 23, 1998. TRD-9811666 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 Division 4. Safe and Drug-Free Schools and Communities Act Fund 1 TAC sec.sec.3.405, 3.410, 3.420, 3.440, 3.450, 3.480, 3.485, 3.490, 3.495 The new and amendments are proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.405. Eligible Projects. (a) The ways in which applicants may address these problems are flexible, based on local needs. A comprehensive community plan must set forth needs, describe existing programs, and describe ways in which the proposed grant-funded project will work with other grant-funded projects in the same target neighborhood to achieve the common goal of drug- and violence-free neighborhoods. The plan must give priority to providing services to children, youths, and their families who are not normally served by state or local education agencies, or to populations that need special services such as at-risk preschoolers, children of teenage parents, youths in juvenile detention facilities, and school dropouts. (b) Applications must target neighborhoods with high rates of violence, drug- and gang-related activities, weapons violations, truancy, and school dropouts. Applications must include a map showing the boundaries of the target neighborhood. CJD will not consider applications if they do not address the common goals stated in sec.3.400 of this title (relating to Source and Purpose) or are not part of a comprehensive community plan as described above. Eligible local programs are: (1) law enforcement education partnerships, such as neighborhood patrols to ensure safe passage of students and teachers to and from school; (2) Drug Abuse Resistance Education, [CHOICES,] Gang Resistance Education and Training, school resource officers, and other school-based projects;
                                                                      [and Project Legal Lives in which prosecutors provide classroom instruction in local schools]; (3) after-school programs, to provide supervision, tutoring, and other services for at-risk students; (4) comprehensive neighborhood drug- and violence-prevention programs, to link schools and families with community resources such as vocational and job skills training or placement and health/mental health services; and (5) training programs, to train parents, law enforcement officers, justice personnel, school officials, and community leaders about drug and violence prevention. Examples of training are conflict resolution skills, anti-violence curricula, and self-improvement programs that enhance personal responsibility and respect for self and others. (c) Eligible statewide programs are the Texas D.A.R.E. Institute and other training programs that address the common goal of drug- and violence-free neighborhoods. sec.3.410. Eligible Applicants. Eligible to apply for grant funds are regional councils of governments, local units of government, universities and colleges, independent school districts, [and] nonprofit corporations, local crime control and prevention districts, state agencies, Native American tribes, and faith-based organizations. Faith- based programs with a legal nonprofit status and a tax exempt status granted by the Internal Revenue Service are eligible to apply for CJD funding sources where nonprofit corporations are eligible. These programs may not use grant funds, matching funds, or program income to proselytize or for sectarian worship.
                                                                        sec.3.420. Grant Period. Grants are generally funded for a 12-month period. Grants are available on September 1 of each year. [Grants may start on that date or any time after during the same fiscal year.] sec.3.440. Decreasing Funding Policy. (a) The decreasing funding ratio provides for CJD funding of 100% of costs in the first year. The first-year grant award, regardless of previous or current funding source, sets a benchmark for all other funding decisions. In the second year the grantee is eligible for 80% of the benchmark amount; in the third year the grantee is eligible for 60% of the benchmark amount; in the fourth year the grantee is eligible for 40% of the benchmark amount; in the fifth year, the grantee is eligible for 20% of the benchmark amount. CJD will not consider any project for sixth- or subsequent-year funding unless the executive director of the Criminal Justice Division, under unusual circumstances, waives this policy in writing. (b) Under this policy, the grantee is responsible for continuing a level of service that is, at a minimum, what it provides in the first year of funding. This is not a cash match requirement, however, and the grantee is not responsible for accounting for any funds other than those directly granted by CJD or earned as program income. (c) Projects to regional councils of governments for planning purposes are exempt from this rule. CJD may make further exemptions of this policy for other types of projects administered by regional councils of governments, if CJD determines that continuing such a project is crucial for the region. (d)
                                                                          Fiscal year 1996 funding levels set the benchmark for projects formerly funded by the Texas Commission on Alcohol and Drug Abuse.
                                                                            sec.3.450. Professional and Contractual Services. In addition [,] to the general policies in sec.3.3050 of this title (relating to Professional and Contractual Service), CJD will only provide funds for up to 50% of the costs for the design, development, or procurement of computer hardware and software. sec. 3.480. Indirect Costs. (a)
                                                                              Applicants without an approved cost allocation plan may receive indirect costs in an amount not to exceed a total of two percent of the total direct costs awarded by CJD. Applicants with an approved cost allocation plan may use it to determine the allowable indirect costs. Personnel expenses included in indirect costs should not be staff positions directly related to the grant, but rather support or administrative staff expenses such as payroll services, legal services, staff supervision, etc. Additionally, services appropriate to indirect costs may not be listed under direct services if the grantee receives any indirect costs.
                                                                                (b)
                                                                                  Grantees may use grant funds as indirect costs if approved in the original grant budget or subsequently through a grant adjustment.
                                                                                    sec.3.485. Progress Reports. Each grantee must submit progress reports in accordance with the instructions provided by and in the form prescribed by CJD. The grantee must submit reports only for those activities supported by CJD grant funds, grantee match, and program income. The project director of the grant must sign all progress reports. Progress reports are due twice a year. The first progress report is due 20 days following the end of the sixth month of the grant period. The final progress report is due 20 days following the end of the grant period. Failure to meet these deadlines will result in CJD placing an automatic financial hold on the grantee. CJD will not award a grant for a continuation project unless all progress reports due by the award date are complete, correct, and on file at CJD.
                                                                                      sec.3.490. Two-Year Application. Beginning fiscal year 1998, applicants will complete a two-year application. If the applicant receives a grant it will be for one year but the applicant will receive automatic consideration for second year funding. In the second year of each two-year cycle, there will be no need for a grantee to complete an additional application, but CJD may require grantees to submit updated attachments, contracts, resolutions, and other information as necessary. CJD will base decisions on continuation applications on the timeliness and thoroughness of reporting, how well the project is meeting its goals, and the outcomes of any CJD on-site visits. sec.3.495.Retention of Report Records. In addition to the requirements of sec.3.6010 of this chapter, grantees must retain all project records for five years following the close of the most recent audit report. 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 July 23, 1998. TRD-9811678 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 1 TAC sec.3.425 (Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Office of the Governor or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The repeal is proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.425. Continuation Funding Policies. 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 July 23, 1998. TRD-9811667 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 Division 5. Victims of Crime Act Fund 1 TAC sec.sec.3.500, 3.505, The new and amendment are proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.500. Source and Purpose. The Victims of Crime Act of 1984, as amended, 421 USC 10601 et seq. authorizes the VOCA grant program under Public Law 98-473, title II, chapter XIV. The Office of Victims of Crime in the United States Department of Justice provides an annual formula grant to Texas. The program provides funds to operate projects with the primary mission of providing assistance and services directly to victims of crime. These services do not include monetary compensation or financial assistance. VOCA provides funding for programs that provide victims with the assistance and services necessary to speed their recovery from a criminal act and aid them in the criminal justice process. New applicants must demonstrate that, at a minimum, 25% of their financial support comes from non-federal sources.
                                                                                        sec.3.505. Eligible Projects. (a) Grantees may use VOCA funds only to provide services to victims of crime that address the aftermath of the crime. Services to victims of crime means those activities that directly benefit individual crime victims. Activities unrelated or marginally related to the provision of direct services to victims are ineligible for funding. (b) CJD requires projects to assist victims in seeking available benefits under the Texas Crime Victims Compensation Act. Projects must also demonstrate that they will provide appropriate assistance to victims of crime as soon as possible after the crime occurs to reduce the severity of the psychological consequences; improve the victim's willingness to cooperate with the criminal justice process, and restore the victim's faith in the criminal justice system. (c) CJD recognizes the variations in existing project models. CJD, therefore, does not require grantees to provide victim assistance immediately after the occurrence of a crime in order to remain eligible for grant funding. (d) CJD allocates at least 10% of all available VOCA funds to six project categories that provide assistance and services directly to victims of crime. All applications must address at least one of the following categories: (1) victims of sexual assault; (2) victims of domestic
                                                                                          [spousal] abuse; (3) victims of child abuse; (4) previously under-served populations of victims of violent crime, which include survivors of victims of homicide; victims of physical assault other than sexual assault, spousal abuse, and child abuse; families of kidnapped children if the kidnapping can be confirmed as an act of violent crime, as distinguished from violation of a court order relating to parental custody; victims of stalking; victims of theft resulting in significant hardship, victims of burglary of a habitation, and victims of robbery; and victims of abuse of the elderly; (5) other victim assistance, including any combination of (1)-(4) of this subsection; and projects assisting victims of other types of crime; and (6) comprehensive victim assistance, including projects that provide assistance to victims of all types of crime. (e) Activities that are ineligible for grant funding include: (1) Crime prevention activities, other than those prevention efforts specifically included in providing emergency assistance immediately after the victimization, and other activities intended to educate the community about the prevention of crime and to raise the public's consciousness regarding crime are ineligible. (2) Advocacy for particular legislation or administrative reform or to influence the outcome of an election is ineligible. Programs that focus primarily on lobbying or raising public awareness concerning a particular issue or cause do not qualify as direct services to crime victims and therefore are ineligible. (3) Activities that are directed at prosecuting an offender or general criminal justice agency improvements or programs where crime victims are not sole or primary beneficiaries are ineligible. (4) Witness management or notification programs are ineligible. Victim/witness assistance programs that provide both victim services and witness notification services can receive funding support only for that portion of the program that provides direct services to crime victims. (5) Programs that provide rehabilitation and counseling to the perpetrator of the crime are ineligible. In addition, VOCA funds cannot support services to incarcerated individuals, even when the service pertains to the victimization of that individual. (6) Transitional living programs are ineligible. (7) Legal assistance and representation in civil matters are ineligible, except obtaining protective orders, elder abuse petitions, and child abuse petitions. (8) Services and assistance to victims to address the following needs, regardless of whether they are the result of victimization, are ineligible activities: tutorial programs for children, job skills training, parenting skills training, and alcohol/drug abuse treatment. (9) Providing training to persons or groups outside the applicant organization is ineligible. The grantee may invite staff members from other organizations to attend training activities held for the subrecipient's staff, if the VOCA-funded project incurs no additional costs. (10) Projects that serve both victims and nonvictims must reasonably prorate their costs to ensure that VOCA funds are used only for victim services. (11) The development, conduct, and publication of needs assessments, surveys, evaluations, studies, research efforts, training manuals, and protocols are ineligible. This restriction does not preclude the development, publication, or purchase of pamphlets, brochures, etc., designed to train staff members and volunteers or to inform victims of their rights, about procedures for obtaining services and relief within the agency, or about the criminal justice system, or literature that is rehabilitative in nature. (12) Fund raising or any activities related to fund raising are ineligible. (13) Community education and awareness programs, other than publicizing available services, are ineligible. (14) Victim assistance programs that use impact panels, where perpetrators and crime victims meet for confrontation/impact/perpetrator behavior modification, may not include such activities in the grant project. (15) Court Appointed Special Advocate (CASA) programs may not include in the grant any activities and related costs for searching for relatives who may be prospective adoptive parents. In addition, CJD will not approve activities or costs associated with homemaker services provided to the child and family after final court placement. (16) In victim assistance grant projects, mediation between crime victims and perpetrators and restitution by the perpetrator are eligible only when the mediation is one-on-one and only when restitution is paid to the victim. (17) Grantees may not use funds for any expense or service that is readily available at no cost to the grant project or that is provided by other federal, state, or local funds, or by the Texas Crime Victim Compensation Program. (18) Cash payments to victims, for any reason, and cash expenditures of grant or matching funds, for the following purposes, are not allowable: employment agency fees; forensic medical examination for sexual assault victims; fund raising; liability insurance on buildings and vehicles; major maintenance of buildings; newsletters, including supplies, printing, postage and time; program design or evaluation; public information, except as specifically authorized for recruiting, for publicizing the availability of services, and for distributing literature to victims to aid in their recovery; and travel to national meetings. (19)
                                                                                            Reimbursing crime victims for expenses incurred as a result of a crime such as insurance deductibles, replacement of stolen property, funeral expenses, lost wages, and medical bills are ineligible.
                                                                                              (20)
                                                                                                Funds cannot be used to pay for nursing home care (except emergency short-term nursing home shelter), home health-care costs, in-patient treatment costs, hospital care, other types of emergency and on-emergency medical and/or dental treatment, or forensic medical examinations for sexual assault victims.
                                                                                                  (21)
                                                                                                    Funds cannot be used to support relocation expenses for crime victims such as moving expenses, security deposits, ongoing rent, and mortgage payments. However, funds may be used to support staff time in locating resources to assist victims with these expenses.
                                                                                                      (22)
                                                                                                        Funds cannot be used for the development of protocol, interagency agreements, and other working agreements. While these activities benefit crime victims, they are considered examples of the types of activities that grantees undertake as part of their role as a victim services organization, which in turn qualifies them as an eligible VOCA grantee.
                                                                                                          (23)
                                                                                                            Funds may not be used to purchase equipment for another organization or individual to perform a victim related service.
                                                                                                              (f)
                                                                                                                Eligible projects include:
                                                                                                                  (1)
                                                                                                                    Immediate health and safety services that respond to the immediate emotional and physical needs (excluding medical care) of crime victims such as crisis intervention; hospital accompaniment; hot line counseling; emergency food, clothing, transportation, and shelter; and other emergency services intended to restore the victim's sense of security. In situations where a violent crime occurs in the victim's home and it is necessary for the victim to remain there, projects may use CJD funding for temporary measures to secure the home.
                                                                                                                      (2)
                                                                                                                        Mental health assistance services and activities that assist the primary and secondary victims of crime in understanding the dynamics of victimization and in stabilizing their lives after a victimization, such as counseling, group treatment, and therapy.
                                                                                                                          (3)
                                                                                                                            Assistance with Criminal Justice proceedings services that may include advocacy on behalf of crime victims; accompaniment to criminal justice offices and court; transportation; child care or respite care to enable a victim to attend court; notification of victims regarding trial dates, case disposition information, and parole consideration procedures, and assistance with victim impact statements; and restitution advocacy on behalf of specific crime victims.
                                                                                                                              (4)
                                                                                                                                Costs necessary and essential to providing direct services include prorated costs of rent, telephone service, and transportation costs for victims to receive services, emergency transportation costs that enable a victim to participate in the criminal justice system, and local travel expenses for service providers.
                                                                                                                                  (5)
                                                                                                                                    Special services to assist crime victims with managing practical problems created by the victimization such as acting on behalf of the victim with other service providers, creditors, or employers; assisting the victim to recover property that is retained as evidence; assisting in filing for compensation benefits; and helping to apply for public assistance.
                                                                                                                                      (6)
                                                                                                                                        Public presentations made in schools, community centers, or other public forums, and that are designed to encourage crime victims to seek needed services. Such presentations must be part of a larger project.
                                                                                                                                          (7)
                                                                                                                                            Opportunities for crime victims to meet with perpetrators, if such meetings are requested by the victim with the belief that the meeting will have possible beneficial or therapeutic value. Such services must be part of a larger program, be accompanied by counseling for the victim, and be provided in a safe environment.
                                                                                                                                              (8)
                                                                                                                                                Advanced technologies including automated victim notification systems and other new technology designed to benefit victims of crime.
                                                                                                                                                  sec.3.510. Eligible Applicants. Eligible to apply for grant funds are local units of governments, state agencies, nonprofit corporations, [and] Native
                                                                                                                                                    [native] American tribes, regional education service centers, state agencies, and faith-based organizations. Faith-based programs with a legal nonprofit status and a tax exempt status granted by the Internal Revenue Service are eligible to apply for CJD funding sources where nonprofit corporations are eligible. These programs may not use grant funds, matching funds, or program income to proselytize or for sectarian worship.
                                                                                                                                                      sec.3.515. Submission and Selection Process. (a) All applicants must submit their applications for local or regional grants directly to the appropriate regional council of governments (COG). Applicants should call or write their COG for the correct deadline for applications and for application kits. Applications received after the deadline will not be considered. (b) The councils of governments' executive committees and their criminal justice advisory committees review and give a priority assignment to each application. The councils of governments then submit applications and priority rankings to the Criminal Justice Division. There is no set funding allocation to the COGs under these funds. CJD takes the priority rankings of the COGs into account, but is ultimately responsible for making all funding decisions. CJD bases decisions on eligibility and the geographic area's need for services. (c)
                                                                                                                                                        Application kits for statewide projects are available at CJD. The original and one copy of applications are due to the Criminal Justice Division by the first working day in March each year. Once applications are received, staff members selected by the CJD executive director review applications for eligibility and cost-effectiveness and rate them competitively.
                                                                                                                                                          sec.3.535. Funding Levels. The minimum amount that may be applied for in grant funds is $5,000. The maximum amount that may be applied for is $80,000
                                                                                                                                                            [$55,000 sec.3.540. Match Policy. (a) All grantees, other than Native
                                                                                                                                                              [native] American tribes and planning grants at the regional councils
                                                                                                                                                                , must provide a 25% match. Native American tribes must provide a five percent match. This requirement may be satisfied through cash contributions, in-kind contributions, or a combination of the two. (b) Under this policy, the grantee agency is responsible for the required cash or in-kind match and the source of the match must be identified in the grant application. All required and approved grantee matches must comply with the same rules and guidelines that apply to the CJD-funded portion of the grant. (c) A contractor may contribute toward the cash-match requirement, but the final responsibility for the match rests with the grantee. In addition, grantees may use any cash received through legal asset forfeiture toward grantee cash match requirements. (d) Except for funds under the federal Housing and Community Development Act of 1974 and the General Revenue Sharing Act, applicants may not use federal and state grant funds as match. (e) If the grantee uses in-kind contributions to satisfy any part of the match requirement, the following guidelines apply: (1) Limit in-kind contributions shown in the grant application and subsequent grant accounting records to the items and amounts necessary to meet minimum grant-matching requirements. (2) In-kind contributions may consist of volunteer time, professional services, travel, building space, nonexpendable equipment, materials, and supplies contributed within the grant period to the grantee by a third party. (3) An in-kind contribution may include depreciation and use fees for buildings or equipment before the start of the grant period and used in the grant project. Such fees qualify as an in-kind contribution only when based on established cost and depreciation records maintained by the grantee. (4) Grantees are required to maintain records of all in-kind contributions to reflect a full description of the item or service; the area, expressed in square feet, if the item is building space; the name of the contributor; the date when the contribution was made; the fair market value of the contribution and how the value was determined; and in the case of a discount given, the contributor's signature on an affidavit of worth and a statement that the discount is based on the nature of the program and is not available to the general public. (5)
                                                                                                                                                                  Local units of government with continuation projects must contribute at least the same level of matching funds that they contributed in the preceding year.
                                                                                                                                                                    sec.3.545. Personnel. (a) In addition to the requirements of sec.3.3045 of this title (relating to Personnel), no more than 25% of personnel or personnel time, both paid and volunteer, can be spent on tasks other than direct-service delivery. These tasks include administration and support. Nonprofit corporations are exempt from the rule on supplanting of staff members stated in sec.3.3045 of this title. (b) The grantee must provide volunteer time.
                                                                                                                                                                      [A minimum of 520 hours per year of volunteer time is required.] (c)
                                                                                                                                                                        New positions for continuation projects must be clearly new job positions that expand the services being provided by the project. The increased services must also be clearly demonstrated in the program narrative.
                                                                                                                                                                          (d)
                                                                                                                                                                            Personnel costs must be directly related to providing direct services. Salaries, fees, and other reimbursable expenses traditionally associated with administrators, executive directors, coordinators, and other individuals are ineligible unless these expenses are incurred while providing direct services to crime victims or if a detailed justification is provided that states such supervision is necessary and essential to providing direct services to crime victims, as well as being a cost-effective method in serving more crime victims.
                                                                                                                                                                              sec.3.550. Professional and Contractual Services. In addition[,] to the general policies in sec.3.3050 of this title (relating to Professional and Contractual Services), the grantee may use grant funds or matching funds to pay counselors, including psychiatrists, psychologists, therapists, and facilitators for services on a case-by-case, fee-for-service arrangement. Salaried full-time or part-time staff, however, must provide a majority of services on the grantee premises and funds may be used for contract services for short term nursing home shelter for elderly victims of abuse
                                                                                                                                                                                . sec.3.555. Transportation, Travel, and Training. In addition [,] to the general policies in sec.3.3055 of this title (relating to Transportation, Travel, and Training), all out-of-state travel requires a 50% cash match. Funds may be used for travel to one national meeting or training conference per grant year and must receive approval in advance. CJD will approve only a reasonable number of attendees.
                                                                                                                                                                                  sec.3.560. Equipment. In addition [,] to the general policies in sec.3.3060 of this title (relating to Equipment), CJD will pay up to 50% of the costs of equipment
                                                                                                                                                                                    [all equipment must be purchases entirely with the grantee matching funds.] sec.3.585. Progress Reports. Each grantee must submit progress reports in accordance with the instructions provided by and in the form prescribed by CJD. The grantee must submit reports only for those activities supported by CJD grant funds and grantee match. The project director of the grant must sign all progress reports. Progress reports are due quarterly. The report is due 20 days after the end of each three month reporting period. Failure to meet these deadlines will result in CJD placing an automatic financial hold on the grantee. CJD will not award a grant for a continuation project unless all progress reports due by the award date are complete, correct, and on file at CJD.
                                                                                                                                                                                      sec.3.590. Two-Year Application. Beginning fiscal year 1998, applicants will complete a two-year application. If the applicant receives a grant it will be for one year but the applicant will receive automatic consideration for second year funding. In the second year of each two-year cycle, there will be no need for a grantee to complete an additional application, but CJD may require grantees to submit updated attachments, contracts, resolutions, and other information as necessary. CJD will base decisions on continuation applications on the timeliness and thoroughness of reporting, how well the project is meeting its goals, and the outcomes of any CJD on-site visits. 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 July 23, 1998. TRD-9811679 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 1 TAC sec.3.525 (Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Office of the Governor or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The repeal is proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.525. Continuation Funding Policies. 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 July 23, 1998. TRD-9811668 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 Division 6. Crime Stoppers Assistance Fund 1 TAC sec.sec.3.615, 3.635, 3.640, 3.645, 3.685, 3.696 The new and amendments are proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.615. Submission and Selection Process. (a) All applicants must submit their applications for local or regional grants directly to the appropriate regional council of governments (COG). Applicants should call or write their COG for the correct deadline for applications and for application kits. Applications received after deadline will not be considered. (b) The councils of governments' executive committees and their criminal justice advisory committees review and give a priority assignment if applicable to each application. The councils of governments then submit applications and priority rankings to the Criminal Justice Division. There is no set funding allocation to the COGs under these funds. CJD takes the priority rankings of the COGs into account, but is ultimately responsible for making all funding decisions. CJD bases decisions on eligibility and the geographic area's need for services. (c)
                                                                                                                                                                                        Application kits for statewide projects are available at CJD. The original and one copy of applications are due to the Criminal Justice Division by the first working day in March each year. Once applications are received, staff members selected by the CJD executive director review applications for eligibility and cost-effectiveness and rate them competitively.
                                                                                                                                                                                          sec.3.635. Funding Levels. The minimum amount that may be applied for in grant funds is $1,000. The maximum amount that may be applied for is $15,000
                                                                                                                                                                                            [$10,000 sec.3.640. Match Policy. (a) Programs that are in their first or second year of funding need not provide a cash match except on equipment. Programs in their third and subsequent years of funding must provide a match that is equivalent to the total amount of the grant award. This requirement must be satisfied through cash contributions only. The Criminal Justice Division may waive the match requirement if the applicant can adequately demonstrate that the project will benefit Crime Stoppers on a statewide basis. Grants to conduct a Crime Stoppers training conference have no cash match requirement. (b) Under this policy, the grantee agency is responsible for the required cash match and must identify the source of the match in the grant application. All required and approved grantee match funds must comply with the same rules and guidelines that apply to the CJD-funded portion of the grant. (c) A contractor may contribute toward the cash-match requirement, but the final responsibility for the match rests with the grantee. In addition, grantees may use any cash received through legal asset forfeiture toward grantee cash match requirements. (d) Except for funds under the federal Housing and Community Development Act of 1974 and the General Revenue Sharing Act, applicants may not use federal and state grant funds as match. (e)
                                                                                                                                                                                              Office space rental expense, in a reasonable amount, may be included as in-kind match.
                                                                                                                                                                                                sec.3.645. Personnel. Grant funds or required cash match may not be used to pay for personnel with the exception of statewide projects
                                                                                                                                                                                                  . sec.3.685. Progress Reports. (a) Each grantee must submit progress reports in accordance with the instructions provided by and in the form prescribed by CJD. The grantee must submit reports only for those activities supported by CJD grant funds, grantee match, and program income. The project director of the grant must sign all progress reports. Progress reports are due monthly. Failure to meet these deadlines will result in CJD placing an automatic financial hold on the grantee. CJD will not award a grant for a continuation project unless all progress reports due by the award date are complete, correct, and on file at CJD.
                                                                                                                                                                                                    (b) Under the Crime Stoppers Assistance Program, CJD requires grantees to provide statistics at inception, current annual statistics, and achievements each month. Reporting categories include: suspects arrested; offenses cleared; number of rewards paid; amount of rewards paid; dollar value of stolen property recovered; dollar value of narcotics recovered; and disposition of each tip transmitted to the individual program by Texas Crime Stoppers. sec.3.696. Two-Year Application. Beginning fiscal year 1998, applicants will complete a two-year application. If the applicant receives a grant it will be for one year but the applicant will receive automatic consideration for second year funding. In the second year of each two-year cycle, there will be no need for a grantee to complete an additional application, but CJD may require grantees to submit updated attachments, contracts, resolutions, and other information as necessary. CJD will base decisions on continuation applications on the timeliness and thoroughness of reporting, how well the project is meeting its goals, and the outcomes of any CJD on-site visits. 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 July 23, 1998. TRD-9811680 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 1 TAC sec.3.625, sec.3.660 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Office of the Governor or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The repeals are proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.625. Continuation Funding Policies. sec.3.660. Equipment. 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 July 23, 1998. TRD-9811669 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 Division 7. Texas Narcotics Control Program 1 TAC sec.sec.3.705, 3.710, 3.715, 3.740, 3.760, 3.770, 3.785, 3.790 The new and amendments are proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.705. Eligible Projects. All projects must meet at least one of the following purpose areas. CJD will not consider other types of programs. (1) Multijurisdictional, multicounty task force programs that integrate federal, state and local drug law enforcement agencies and prosecutors for the purpose of enhancing interagency coordination and intelligence and facilitates multijurisdictional investigations. TNCP task forces must fully use the Texas Narcotics Information System (TNIS), which includes input of task force drug intelligence information.
                                                                                                                                                                                                      (2) Providing community and neighborhood programs that assist citizens in preventing and controlling crime, including special programs that address the problems of crimes committed against the elderly and special programs for rural jurisdictions. (3) Improving the operational effectiveness of law enforcement through the use of crime analysis techniques, street sales enforcement, school yard violator programs, and gang related and low income housing drug control programs. (4) Career criminal prosecution programs, including the development of model drug control legislation. (5) Financial investigation programs that target the identification of money- laundering operations and assets obtained through illegal drug trafficking, including the development of proposed model legislation, financial investigative training, and financial information sharing systems. (6) Improving the operational effectiveness of the court process by expanding prosecution, defender, and judicial resources and by implementing court delay- reduction programs. (7) Criminal justice information systems, including automated fingerprint identification systems, to assist law enforcement, prosecution, courts and corrections organizations. (8) Innovative programs that demonstrate new and different approaches to the enforcement, prosecution, and adjudication of drug offenses and other serious crimes. (9) Drug control evaluation programs that state and local units of government may use to evaluate projects directed at state drug-control activities. (10) Providing alternatives to prevent detention, jail, and prison for persons who pose no danger to the community. (11) Improving or developing forensic laboratory capability to analyze DNA samples. sec.3.710. Eligible Applicants. Eligible to apply for grant funds are local units of government, universities and colleges, [independent school districts,] state agencies, and Native
                                                                                                                                                                                                        [native] American tribes with law enforcement functions. sec.3.715. Submission and Selection Process. (a) All applicants must submit their applications for local or regional grants directly to the appropriate regional council of governments (COG). Applicants should call or write their COG for the correct deadline for applications and for application kits. Applications received after deadline will not be considered. (b) The councils of governments' executive committees and their criminal justice advisory committees review and give a priority assignment to each application. The councils of governments then submit applications and priority rankings to the Criminal Justice Division. There is no set funding allocation to the COGs under these funds. CJD takes the priority rankings of the COGs into account, but is ultimately responsible for making all funding decisions. CJD bases decisions on eligibility and the geographic area's need for services. (c) Application kits for statewide projects are available at CJD. Applications must be submitted to the Criminal Justice by the first working day in March of each year
                                                                                                                                                                                                          . Once applications are received, staff members selected by the CJD executive director review applications for eligibility and cost- effectiveness and rate them competitively. sec.3.740. Match Policy. (a) Grantees , other than planning grants at the regional councils,
                                                                                                                                                                                                            must provide a 25% cash match. This requirement must be satisfied through cash contributions only. Additional match requirements may be imposed in budget schedule policies. (b) Under this policy, the grantee agency is responsible for the required cash match and the source of the match must be identified in the grant application. All required and approved grantee matches must comply with the same rules and guidelines that apply to the CJD-funded portion of the grant. (c) A contractor may contribute toward the cash-match requirement, but the final responsibility for the match rests with the grantee. In addition, grantees may use any cash received through legal asset forfeiture toward grantee cash match requirements. (d) Except for funds under the federal Housing and Community Development Act of 1974 and the General Revenue Sharing Act, applicants may not use federal and state grant funds as match. sec.3.760. Equipment. In addition to the general policies in sec.3.3060 of this title (relating to Equipment), the grantee may use only 20% of the total grant award for equipment purchases. CJD will not approve funds for military vehicles, weapons, or explosives. Criminal Justice Information Systems projects are exempt from this policy. CJD may make an exception to allow for the purchase of unmarked cars or cars used for interdiction only.
                                                                                                                                                                                                              sec.3.770. Program Income. In addition to the policies in sec.3.3070 of this title (relating to Program Income), projects must submit a written request to carry program income forward from one grant year to the next. Drug law enforcement units must also fulfill a special condition requiring a formal written agreement or contract with the appropriate district attorneys in the service area of the project. Such an agreement or contract must provide that all property and funds seized by the drug law enforcement unit and subsequently forfeited must revert to the CJD- funded project as program income to further project goals and objectives. Such an agreement or contract must be valid through the grant period, or until the drug law enforcement unit has recovered through forfeiture proceedings an amount equal to the total amount funded by the grant. Cash contributions and donations are included in the definition of program income and must be accounted for as such.
                                                                                                                                                                                                                sec.3.785. Progress Reports. (a) Each grantee must submit progress reports in accordance with the instructions provided by and in the form prescribed by CJD. The grantee must submit reports only for those activities supported by CJD grant funds, grantee match, and program income. The project director of the grant must sign all progress reports. Progress reports are due quarterly. The first progress report is due 20 days following the end of the first quarter of the grant period. The final progress report is due 20 days following the end of the grant period. Failure to meet these deadlines will result in CJD placing an automatic financial hold on the grantee. CJD will not award a grant for a continuation project unless all progress reports due by the award date are complete, correct, and on file at CJD.
                                                                                                                                                                                                                  (b) Reporting requirements include: (1) Progress reports. Non-task-force grant projects must submit to CJD a quarterly report of the project's progress and achievements. Grantees must design an evaluation plan that will measure the effectiveness of the project. TNCP will provide the necessary report forms to the grantees. The required submission date for this report is the 20th day of the month following the end of each quarter. (2) Narcotics activity reports. All task force grant projects must submit quarterly narcotics activity reports to CJD. The design of the form is subject to change at the discretion of CJD. The required submission dates for this report is the 20th day of the month following the end of each quarter. (3) Major enforcement action reports. This report highlights the major accomplishments of task force-related and grant-funded projects. It should include the details of the action. (4) Immigration and Naturalization Service reporting requirement. The grantee must meet the reporting requirements of sec.507 of the Immigration Act of 1990 (Public Law 101-649), amending sec.503(a) of the Omnibus Crime Control and Safe Streets Act of 1968, 42 USC 3753(a). The reporting requirements include additional data elements such as "place of birth" and "citizenship and alien identification number." The arresting agency provides these data in the identification and arrest segment of the new Texas Department of Public Safety/Criminal Justice Information System (DPS/CJIS) tracking incident form, fingerprint card, and supplemental form. (5) Criminal intelligence operation policies. The grantee must comply with the requirements of the Criminal Intelligence System Operating Policies, 28 CFR, part 23. The grantee must provide a certification that each project conforms with the operating policies set forth at 28 CFR, sec.23.20, and is eligible under the funding guidelines set forth at 28 CFR, sec.23.30. The grantee further agrees to provide specialized monitoring and audit of such projects pursuant to 28 CFR, sec.23.40(a). (6)
                                                                                                                                                                                                                    Prosecution reports. All task forces are required to submit monthly prosecution reports. The report is due by the 10th day of each month. TNCP will provide each task force with the necessary form. The form may be faxed or mailed to TNCP. If there is no activity during the month, the project must send in a blank report acknowledging no activity.
                                                                                                                                                                                                                      (7)
                                                                                                                                                                                                                        Annual reports. No later than August 15 each year, all TNCP projects must submit an annual report summarizing the activities that occurred during the year. The report should contain a narrative of goals and objectives of the project, accomplishments of the goals, and statistics such as drug seized, assets seized or forfeited, and arrests. The report must describe relationships between the project and local communities within the impact area, and local law enforcement agencies including those who participate and those who do not. The report should describe the impact on drug use and drug availability or violent crime in the project area and the project's contribution to the statewide drug strategy. The project should assess the impact on the adjudication and prosecution process. The report should describe programs or practices that have been proven successful and unsuccessful and the reasons these practices were successful or unsuccessful.
                                                                                                                                                                                                                          sec.3.790. Two-Year Application. Beginning fiscal year 1998, applicants will complete a two-year application. If the applicant receives a grant it will be for one year but the applicant will receive automatic consideration for second year funding. In the second year of each two-year cycle, there will be no need for a grantee to complete an additional application, but CJD may require grantees to submit updated attachments, contracts, resolutions, and other information as necessary. CJD will base decisions on continuation applications on the timeliness and thoroughness of reporting, how well the project is meeting its goals, and the outcomes of any CJD on-site visits. 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 July 23, 1998. TRD-9811681 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 1 TAC sec.3.725 (Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Office of the Governor or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The repeal is proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.725. Continuation Funding Policies. 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 July 23, 1998. TRD-9811670 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 Division 8. Violence Against Women Act Fund 1 TAC sec.sec.3.910, 3.915, 3.935, 3.940, 3.945, 3.950, 3.960, 3.970, 3.980, 3.985, 3.990 The new and amendments are proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.910. Eligible Applicants. Eligible to apply for grant funds are state agencies, nonprofit organizations, local units of governments, [and] Native American tribes , regional councils, state agencies, universities and colleges, and faith-based organizations. Faith-based programs with a legal nonprofit status and a tax exempt status granted by the Internal Revenue Service are eligible to apply for CJD funding sources where nonprofit corporations are eligible. These programs may not use grant funds, matching funds, or program income to proselytize or for sectarian worship
                                                                                                                                                                                                                            . sec.3.915. Submission and Selection Process. (a) All applicants must submit their applications for local or regional grants directly to the appropriate regional council of governments (COG). Applicants should call or write their COG for the correct deadline for submission of applications. Applications received after deadline will not be considered. (b) The councils of governments' executive committees and their criminal justice advisory committees review and give a priority assignment to each application. The councils of governments then submit applications and priority rankings to the Criminal Justice Division. There is no set funding allocation to the COGs under these funds. CJD takes the priority rankings of the COGs into account, but is ultimately responsible for making all funding decisions. (c) CJD will award grants to projects that demonstrate the greatest need based on the availability of existing domestic violence and sexual assault programs in the population and geographic area of the project. CJD will also give priority to the projects that address the needs of unserved, underserved, and special populations. (d) CJD will allocate 25% VAWA funds to law enforcement, 25% to prosecution, 25% to victim service, and 25% to other discretionary projects. (e) Application kits for statewide projects are available at CJD. The original and one copy of applications are due to the Criminal Justice Division by the first working day in March each year. Once applications are received, staff members selected by the CJD executive director review applications for eligibility and cost-effectiveness and rate them competitively. sec.3.935. Funding Levels. The minimum amount that may be applied for in grant funds is $5,000. The maximum amount that may be applied for is $80,000
                                                                                                                                                                                                                              [$40,000]. Violence Against Women courts may apply for a maximum of $250,000.
                                                                                                                                                                                                                                sec.3.940. Match Policy. (a) All grantees, except nonprofit and non-governmental victim services programs and planning grants at the regional councils
                                                                                                                                                                                                                                  , must provide a 25% match. This requirement may be satisfied through cash contributions, in-kind contributions, or a combination of the two. (b) Under this policy, the grantee agency is responsible for the required cash or in-kind match and the source of the match must be identified in the grant application. All required and approved grantee matches must comply with the same rules and guidelines that apply to the CJD-funded portion of the grant. (c) A contractor may contribute toward the cash-match requirement, but the final responsibility for the match rests with the grantee. In addition, grantees may use any cash received through legal asset forfeiture toward grantee cash match requirements. (d) Except for funds under the federal Housing and Community Development Act of 1974 and the General Revenue Sharing Act, applicants may not use federal and state grant funds as match. (e) If the grantee uses in-kind contributions to satisfy any part of the match requirement, the following guidelines apply: (1) Limit in-kind contributions shown in the grant application and subsequent grant accounting records to the items and amounts necessary to meet minimum grant-matching requirements. (2) In-kind contributions may consist of volunteer time, professional services, travel, building space, nonexpendable equipment, materials, and supplies contributed within the grant period to the grantee by a third party. (3) An in-kind contribution may include depreciation and use fees for buildings or equipment before the start of the grant period and used in the grant project. Such fees qualify as an in-kind contribution only when based on established cost and depreciation records maintained by the grantee. (4) Grantees are required to maintain records of all in-kind contributions to reflect a full description of the item or service; the area, expressed in square feet, if the item is building space; the name of the contributor; the date when the contribution was made; the fair market value of the contribution and how the value was determined; and in the case of a discount given, the contributor's signature on an affidavit of worth and a statement that the discount is based on the nature of the program and is not available to the general public. (5)
                                                                                                                                                                                                                                    Local units of government with continuation projects must contribute at least the same level of matching funds that they contributed in the preceding year.
                                                                                                                                                                                                                                      sec.3.945. Personnel. (a) [In addition to the requirements of sec.3.3045 of this title (relating to Personnel), the grantee may spend no more than 25% of personnel or personnel time, both paid and volunteer, on task other than direct-service delivery. These task include administration and support. ] Nonprofit corporations are exempt from the rule on supplanting of staff members stated in sec.3.3045 of this title. (b) New positions for continuation projects must be clearly new job positions that expand the services being provided by the project. The increased services must also be clearly demonstrated in the program narrative.
                                                                                                                                                                                                                                        [A minimum of 520 hours per year of volunteer time is required. sec.3.950. Professional and Contractual Services. (a)
                                                                                                                                                                                                                                          In addition [,] to the general policies in sec.3.3050 of this title (relating to Professional and Contractual Services), the grantee may use grant funds or matching funds to pay counselors, including psychiatrists, psychologists, therapists, and facilitators for services on a case-by-case, fee- for-service arrangement. Salaried full-time or part-time staff, however, must provide a majority of services on the grantee premises. (b)
                                                                                                                                                                                                                                            Funds may be used for contract services for short term nursing home shelter for elderly victims of abuse.
                                                                                                                                                                                                                                              sec.3.960.Equipment. In addition [,] to the general policies in sec.3.3060 of this title (relating to Equipment), CJD will pay up to 50% of the costs of equipment.
                                                                                                                                                                                                                                                [all equipment must be purchased entirely with the grantee matching funds.] sec. 3.970. Program Income. Only training projects may earn program income.
                                                                                                                                                                                                                                                  [VAWA projects may not earn program income.] sec.3.980. Indirect Costs. (a)
                                                                                                                                                                                                                                                    Applicants without an approved cost allocation plan may receive indirect costs in an amount not to exceed a total of two percent of the total direct costs awarded by CJD. Applicants with an approved cost allocation plan may use it to determine the allowable indirect costs. Personnel expenses included in indirect costs should not be staff positions directly related to the grant, but rather support or administrative staff expenses such as payroll services, legal services, staff supervision, etc.
                                                                                                                                                                                                                                                      [Indirect costs are an ineligible expense and CJD will not award grant funds for this purpose to any grantee.] (b)
                                                                                                                                                                                                                                                        Grantees may use grant funds as indirect costs if approved in the original grant budget or subsequently through a grant adjustment.
                                                                                                                                                                                                                                                          sec.3.985. Progress Reports. Each grantee must submit progress reports in accordance with the instructions provided by and in the form prescribed by CJD. The grantee must submit reports only for those activities supported by CJD grant funds, grantee match, and program income. The project director of the grant must sign all progress reports. Progress reports are due quarterly. The report is due 20 days after the end of each three month reporting period. Failure to meet these deadline will result in CJD placing an automatic financial hold on the grantee. CJD will not award a grant for a continuation project unless all progress reports due by the award date are complete, correct, and on file at CJD.
                                                                                                                                                                                                                                                            sec.3.990. Two-Year Application. Beginning fiscal year 1998, applicants will complete a two-year application. If the applicant receives a grant it will be for one year but the applicant will receive automatic consideration for second year funding. In the second year of each two-year cycle, there will be no need for a grantee to complete an additional application, but CJD may require grantees to submit updated attachments, contracts, resolutions, and other information as necessary. CJD will base decisions on continuation applications on the timeliness and thoroughness of reporting, how well the project is meeting its goals, and the outcomes of any CJD on-site visits. 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 July 23, 1998. TRD-9811682 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 1 TAC sec.3.925, sec.3.955 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Office of the Governor or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The repeals are proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.925. Continuation Funding Policies. sec.3.955. Transportation, Travel, and Training. 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 July 23, 1998. TRD-9811671 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 Division 9. Challenge Grants 1 TAC sec.sec.3.1015, 3.1030, 3.1050, 3.1060, 3.1080, 3.1085 The new and amendments are proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.1015. Submission and Selection Process. (a) Applicants submit their applications directly to the Criminal Justice Division by the date listed in the Request for Applications published annually in the Texas Register.
                                                                                                                                                                                                                                                              Applications are rated by staff members and other persons designated by the executive director of CJD. The Governor
                                                                                                                                                                                                                                                                [governor] makes all final funding decisions. (b) CJD will notify all applicants of the final outcome of their grant application. (c) Members of the Governor's Juvenile Justice Advisory Board are given the opportunity to review and comment on all applications. sec.3.1030. Years of Funding. In addition to the rules under sec.3.2020 of this chapter (relating to Continuation Funding Policies), Challenge grants are typically awarded for a maximum of one year of funding , but may be extended if the grantee meets the following conditions:
                                                                                                                                                                                                                                                                  (1)
                                                                                                                                                                                                                                                                    Grantee must provide supporting documentation that the program is working.
                                                                                                                                                                                                                                                                      (2)
                                                                                                                                                                                                                                                                        Grantee must demonstrate significant progress toward meeting their second year goals.
                                                                                                                                                                                                                                                                          (3)
                                                                                                                                                                                                                                                                            CJD will monitor the current grant prior to award of the continuation grant.
                                                                                                                                                                                                                                                                              (4)
                                                                                                                                                                                                                                                                                Grantee must be in full compliance with CJD financial and program guidelines.
                                                                                                                                                                                                                                                                                  (5)
                                                                                                                                                                                                                                                                                    Grantee must contract for an external program evaluation. Grantees may allocate expenses for this in the proposed budget. Keep in mind that guidelines must be followed for consultant and professional services.
                                                                                                                                                                                                                                                                                      (6)
                                                                                                                                                                                                                                                                                        A copy of the current model policies and procedures are provided.
                                                                                                                                                                                                                                                                                          (7)
                                                                                                                                                                                                                                                                                            Grantee follows standard CJD guidelines as stated in this chapter.
                                                                                                                                                                                                                                                                                              sec.3.1050.Professional and Contractual Services. In addition [,] to the general policies in sec.3.3050 of this title (relating to Professional and Contractual Services), CJD will only provide funds for up to 50% of the costs for the design, development, or procurement of computer hardware and software. sec.3.1060. Equipment. In addition [,] to the general policies in sec.3.3060 of this title (relating to Equipment), CJD will only provide funds for up to 50% of the costs of equipment purchases. Grantees may only make such purchases in the first year of funding. sec.3.1080. Indirect Costs. (a)
                                                                                                                                                                                                                                                                                                Applicants without an approved cost allocation plan may receive indirect costs in an amount not to exceed a total of 2.0% of the total direct costs awarded by CJD. Applicants with an approved cost allocation plan may use it to determine the allowable indirect costs. Personnel expenses included in indirect costs should not be staff positions directly related to the grant, but rather support or administrative staff expenses such as payroll services, legal services, staff supervision, etc. Additionally, services appropriate to indirect costs may not be listed under direct services if the grantee receives any indirect costs.
                                                                                                                                                                                                                                                                                                  (b)
                                                                                                                                                                                                                                                                                                    Grantees may use grant funds as indirect costs if approved in the original grant budget or subsequently through a grant adjustment.
                                                                                                                                                                                                                                                                                                      sec.3.1085. Progress Reports. Each grantee must submit progress reports in accordance with the instructions provided by and in the form prescribed by CJD. The grantee must submit reports only for those activities supported by CJD grant funds, grantee match, and program income. The project director of the grant must sign all progress reports. Progress reports are due twice a year. The first progress report is due 20 days following the end of the sixth month of the grant period. The final progress report is due 20 days following the end of the grant period. CJD will not make a grant award for continuation projects unless all progress reports due by the award date are complete, correct, and on file at CJD.
                                                                                                                                                                                                                                                                                                        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 July 23, 1998. TRD-9811683 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 1 TAC sec.3.1025 (Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Office of the Governor or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The repeal is proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.1025. Continuation Funding Policies. 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 July 23, 1998. TRD-9811672 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 Division 10. Residential Substance Abuse Treatment 1 TAC sec.sec.3.1100, 3.1105, 3.1110, 3.1115, 3.1120, 3.1130, 3.1135, 3.1140, 3.1165, 3.1180, 3.1185 The new rules are proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.1100. Source and Purpose. The source of these federal funds is Title I of the Omnibus Crime Control and Safe Streets Act (42 U.S.C. 3711 et seq.), as amended by the Violent Crime Control and Law Enforcement Act of 1994. sec.3.11005. Eligible Projects. Projects must provide residential substance abuse treatment to adults and juveniles incarcerated in correctional facilities. sec.3.1110. Eligible Applicants. Eligible to apply for grant funds are state agencies and counties that operate secure correctional facilities. Applicants who receive grants may provide services directly in correctional facilities that they operate or they may contract with qualified service providers who meet all licensing and certification requirements. sec.3.1115. Submission and Selection Process. Application kits are available at CJD. The original and six copies of the application are due to the Criminal Justice Division by the date listed in the annual Request for Applications published in the Texas Register. Once applications are received, staff members selected by the CJD executive director review applications for eligibility and cost-effectiveness and rate them competitively. sec.3.1120. Grant Period. Grants are generally funded for a 12-month period. Grants must begin on or after September 1. sec.3.1130. Years of Funding. There is no maximum number of years that a project can be funded. sec.3.1135. Funding Levels. There is no maximum amount that may be applied for, but applicants should be aware that cost-effectiveness will be taken into consideration in the selection process. Small and large jurisdictions, state agencies, and regional approaches serving two or more counties are encouraged to apply. In selecting applications for grant award, CJD will seek a balance of funding between adult/juvenile populations state agencies/local agencies, and urban/rural areas subject to quality of applications received and results of competitive scoring. Additionally, before determining the amount of funding to be requested, consult with CJD regarding the amount of funding available. sec.3.1140. Match Policy. Grantees must provide a cash match of 25% of the total project costs. sec.3.1165. Renovation and Retrofitting. Under no circumstances will CJD approve funds for construction, land acquisition, or supplantation of federal, state, or local funds supporting existing programs or activities. sec.3.1180. Indirect Costs. CJD will not approve indirect costs under this funding source. sec.3.1185. Progress Reports. Each grantee must submit progress reports in accordance with the instructions provided by and in the form prescribed by CJD. The grantee must submit reports only for those activities supported by CJD grant funds, grantee match, and program income. The project director of the grant must sign all progress reports. Progress reports are due twice a year. The first progress report is due 20 days following the end of the sixth month of the grant period. The final progress report is due 20 days following the end of the grant period. Failure to meet these deadlines will result in CJD placing an automatic financial hold on the grantee. CJD will not make a grant award for continuation projects unless all progress reports due by the award date are complete, correct, and on file at CJD. 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 July 23, 1998. TRD-9811699 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 SUBCHAPTER C.General Grant Program Policies Division 1. General Eligibility Requirements 1 TAC sec.3.2000 The amendment is proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.2000. Community Plans. (a) The Criminal Justice Division will determine the eligibility of local and regional applications based on whether or not agencies and citizens work together as part of an overall community plan to address identified problems, as well as other eligibility requirements outlined in this chapter. Regional planning and law enforcement academy grants funded to the regional council of governments are exempt from this eligibility rule.
                                                                                                                                                                                                                                                                                                          (b) The plan must reflect the participation of the whole community, including representatives of public agencies, private nonprofit organizations, education, health, mental health, juvenile justice, criminal justice, child welfare, law enforcement, the private sector, community associations, faith-based organizations, victim services,
                                                                                                                                                                                                                                                                                                            [economic development] and concerned citizens. A community planning group must be comprised of many interests and must be written around the general public safety topic and not a single topic. (c) Plans must target specific problems of concern and identify a variety of resources that the community will use to address them. CJD funds may be applied for to fill the gaps in services identified in the community plan. (d) A plan should target one or more communities. A city, county, or region may submit multiple plans
                                                                                                                                                                                                                                                                                                              as long as there is no actual overlap in the plans' target areas. The criminal justice planners at the regional councils of governments working with local officials must ensure that there is no duplication and that all plans and projects work together. (e) The plan should identify the strategies and goals for each identified problem. Planning must be performed by the multidisciplinary team identified in subsection (b) of this section and must address each of the following steps: (1) Identify the community's problems and gaps in services. Statistical data must demonstrate the extent of the problems. Problems should be specific and narrow in scope so that the plan shows a proper use of resources. (2) Identify all possible resources that can be used to address the identified problems and explain their uses in developing a creative and comprehensive strategy. The plan should provide for community-wide cooperation in a comprehensive approach to solving local problems. (3) Identify gaps in services. Once the plan is written, gaps in existing resources should be identified. The planning group should examine the gaps with potential grant funding in mind. The plan must also identify new types of projects that would enhance the community's effort. Communities may submit applications for these projects in response to the community plan to the regional council of governments. (f) Community planning groups must reapprove or revise the community plan at least annually and place that current plan on file with the appropriate regional council of governments. The COGS will set deadlines each year for community plan revisions that are at least 30 days prior to accepting any grant application for that fiscal year. If a group does not have a current plan on file by that deadline, the community will not be eligible for CJD funds during the next grant cycle.
                                                                                                                                                                                                                                                                                                                [The councils of governments will set deadlines for plan submissions each year.] (g)
                                                                                                                                                                                                                                                                                                                  The COGS and CJD use the plans only to determine whether or not a community is eligible to receive CJD funds. Neither CJD nor the COGs score community plans or rate them competitively for use in prioritizing grant applications.
                                                                                                                                                                                                                                                                                                                    (h)
                                                                                                                                                                                                                                                                                                                      For additional information on community planning, please call the criminal justice planner at your regional council of governments or CJD at (512) 475-4461.
                                                                                                                                                                                                                                                                                                                        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 July 23, 1998. TRD-9811684 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 1 TAC sec.sec.3.2005, 3.2010, 3.2020 The new and amendments are proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.2005. Juvenile Justice and Youth Projects. (a)
                                                                                                                                                                                                                                                                                                                          All grant applications for juvenile justice and youth projects, regardless of funding source, must address the following policies:
                                                                                                                                                                                                                                                                                                                            (b)
                                                                                                                                                                                                                                                                                                                              All juvenile projects that receive CJD funds from any source must address the representation of minority youths in the juvenile justice system. This requirement of the Juvenile Justice and Delinquency Prevention Act, may be met in a wide range of ways, depending on local needs. Methods include early prevention projects and projects designed to divert juveniles from the justice system in appropriate cases.
                                                                                                                                                                                                                                                                                                                                (c) The following priority need statements were created and prioritized by the Governor's Juvenile Justice Advisory Board. Each juvenile justice project funded by CJD must address one or more of the following statements.
                                                                                                                                                                                                                                                                                                                                  (1)
                                                                                                                                                                                                                                                                                                                                    There is a critical need for early prevention and early intervention programs to address conditions that contribute to delinquent behavior.
                                                                                                                                                                                                                                                                                                                                      (2)
                                                                                                                                                                                                                                                                                                                                        There is a need for educational personnel to be appropriately trained in procedures related to the juvenile justice system so that they may exercise their authority and use their resources to deal with serious problems at school or related activities. They may then teach with less disruption or fear of violence. The schools and juvenile justice system need programs that make it easier to discipline problem students and to counsel them and teach good citizenship, literacy, and job skills. There is a need for programs that target at-risk students as early as possible.
                                                                                                                                                                                                                                                                                                                                          (3)
                                                                                                                                                                                                                                                                                                                                            There is a need to reduce violent youth crimes. Juveniles must be held accountable and responsible for their actions. There is a need to retrain violent youths and to provide appropriate skills to their parents.
                                                                                                                                                                                                                                                                                                                                              (4)
                                                                                                                                                                                                                                                                                                                                                There is a need for aggressive and comprehensive approach to counteract gangs. Such an approach should include increased identification, surveillance, arrest, and prosecution of gang members involved in criminal activities; increased alternatives to gang involvement; and early prevention of conditions that contribute to the growth of gangs. The public perceives disorder and social decay of families and neighborhoods to be major factors contributing to involvement in gangs.
                                                                                                                                                                                                                                                                                                                                                  (5)
                                                                                                                                                                                                                                                                                                                                                    There is a need to instill appropriate social values and character in children. Family dysfunction and lack of family values correlate to youth crime and need to be corrected. Family preservation should be emphasized whenever possible. Programs should also be available for children removed from their homes because of necessity. Disproportionate numbers of serious juvenile offenders come from single-parent families or families with a high degree of conflict, instability, violence, and inadequate supervision. Family crisis programs are needed in which delinquent or re-delinquent youths and their parents are counseled and given training in conflict resolution, enhanced communication, goal setting, and the negative consequences of teenage pregnancy.
                                                                                                                                                                                                                                                                                                                                                      (6)
                                                                                                                                                                                                                                                                                                                                                        There is a need for progressive sanctions programs. These programs must ensure that there are swift and certain consequences for juveniles who commit crimes and that the punishment will correct the juvenile's conduct.
                                                                                                                                                                                                                                                                                                                                                          (7)
                                                                                                                                                                                                                                                                                                                                                            There is a critical need to plan comprehensively and to involve the whole community in efforts to deal with juvenile crime. All projects working with youths should take part in such comprehensive efforts as an integral part of their overall program.
                                                                                                                                                                                                                                                                                                                                                              (8)
                                                                                                                                                                                                                                                                                                                                                                There is a need for increased funding for community-based programs to deter young criminals. These programs should be multidisciplinary and should emphasize innovation and replication of successful prevention, restitution, and gang intervention programs.
                                                                                                                                                                                                                                                                                                                                                                  (9)
                                                                                                                                                                                                                                                                                                                                                                    There is a need to develop a computer information system that will match children and families to appropriate service providers on a risk and needs profile. Such a system should regularly update placement information, widely publicize it, and make it accessible to juvenile probation, schools, and private citizens including at-risk families. The goal of this system should be early prevention of the conditions that lead to juvenile crime.
                                                                                                                                                                                                                                                                                                                                                                      (10)
                                                                                                                                                                                                                                                                                                                                                                        There is a need to develop programs to protect the public from and give appropriate dispositions to mentally ill and retarded youths accused of committing crimes. There is also a need to develop or implement a standardized testing instrument to determine whether or not a youth is mentally ill or retarded.
                                                                                                                                                                                                                                                                                                                                                                          (11)
                                                                                                                                                                                                                                                                                                                                                                            There is a need to have programs that help locate parents or guardians of juveniles who are detained but cannot be released because authorities are unable to contact parents or responsible adults to whom these juveniles may be released.
                                                                                                                                                                                                                                                                                                                                                                              (d)
                                                                                                                                                                                                                                                                                                                                                                                CJD encourages school-based prevention projects to target their activities on middle school and junior high age youths, in addition to the usual elementary school programs.
                                                                                                                                                                                                                                                                                                                                                                                  [(a) All juvenile justice projects, regardless of funding source, must address overrepresentation of minority youths in the juvenile justice system. CJD will require this component if, with the applicant's jurisdiction, minority youths are detained or confined in secure facilities in greater proportion than the proportion of such youths in the court age population as a whole. Court age population is defined as all children 10 to 16 years old.] [(b) All juvenile projects must address at least one of the priority needs recommended by the Governor's Juvenile Justice advisory Board and adopted by the Criminal Justice Division, Office of the Governor. They are as follows:] [(1) There is a need for emphasis on early identification of violent juveniles and early intervention to curtail criminal behavior. The juvenile justice system needs better balance, the system concentrates most of the resources on the "back end." There are insufficient resources applied to early intervention. Research indicates that professionals can identify the traits of potential career criminals at the time of their first offense. Identifying first time offenders with a pattern of traits including disciplinary problems in school, child abuse, parental neglect, and drug, alcohol, or inhalant abuse makes it possible to focus intensive efforts on turning these juveniles around before they become habitual offenders.] [(2) There is a need to reduce violent youth crimes. We must hold juveniles accountable and responsible for their actions. Juvenile violent crimes increased 282% between 1984 and 1993. Sexual assault increased 79%; murder, 291%; aggravated assault, 242%; and robbery, 224%.] [(3) There is a need to instill appropriate social values and character in children. Family dysfunction and lack of family values correlate with youth crime and need correcting. We should place emphasis on family preservation, whenever possible. Programs should also be available for those children removed from the home because of necessity. Disproportionate numbers of serious juvenile offenders come from single parent families or families with a high degree of conflict, instability, violence, and inadequate supervision.] [(4) That there are swift and certain consequences for juveniles who commit crimes and that the punishment will fit the crime.] [(5) There is a need for teachers and principals to exercise their power and use their resources to deal with serious problems at school or related activities, so that they can teach and guarantee students their right to learn without disruption or fear of violence. The education and juvenile justice systems need programs that make it easier to discipline and isolate problem students and to teach them good citizenship, literacy, and job skills and then return them to the mainstream classroom. [(6) There is a need for better supervision of youths and a need for an aggressive and comprehensive approach to counteract gangs. These approaches should include increased identification, surveillance, arrest, and prosecution of gang members involved in criminal activities; increased alternatives to gang involvement, and early prevention of conditions that contribute to the growth of gangs. The public perceives disorder and social decay of families and neighborhoods to be a major factor contributing to youth crime.] [(7) There is a need for increased funding for community based programs to deter young criminals. These programs need a multiphilosophical approach. Emphasis should be on innovation and on replicating successful prevention, restitution, and gang intervention programs.] [(8) There is a critical need to plan comprehensively and to involve the whole community in efforts to deal with juvenile crime. Currently, funding agencies largely fund isolated projects in local communities.] [(9) There is a need to develop a computer match program and information system that will match children and families to appropriate service providers based on a risk and needs profile. Such a project should carefully maintain the match program, widely publicize it, and make it accessible to juvenile probation, schools, and private citizens, including at risk families. The goal of this system should be early prevention of the conditions that lead to juvenile crime.] [(10) There is a need to develop programs to protect the public from and give appropriate dispositions to mentally ill and retarded youths accused of committing crimes. There is also a need to develop a standardized testing instrument to determine whether or not a youth is mentally ill or retarded.] [(c ) CJD will place priority on DARE and other school based prevention projects that target their activities on middle school and junior high age youths.] [(d) CJD will not approve funds for compensation to parents of participating children for attending meetings or classes.] sec.3.2010. Criminal Justice Projects. (a)
                                                                                                                                                                                                                                                                                                                                                                                    Subchapter A explains the eligible types of criminal justice programs under each of the CJD funding areas. Applicants should consult the fund descriptions to see under which fund a potential project is eligible.
                                                                                                                                                                                                                                                                                                                                                                                      CJD will limit funding for community-based alternative projects to programs that can document problems and needs not provided for by the Texas Department of Criminal Justice, the Texas Commission on Alcohol and Drug Abuse, the Texas Education Agency, or other agencies. Programs must exclude adult offenders charged with , given deferred adjudication for,
                                                                                                                                                                                                                                                                                                                                                                                        or convicted of violent and serious
                                                                                                                                                                                                                                                                                                                                                                                          crimes including murder, rape, arson, armed robbery, sexual assault, burglary, child molestation, felony drug crimes,
                                                                                                                                                                                                                                                                                                                                                                                            and manslaughter. CJD does not fund projects for adult offenders in correctional facilities.
                                                                                                                                                                                                                                                                                                                                                                                              (b)
                                                                                                                                                                                                                                                                                                                                                                                                In addition, projects that target auto theft are not eligible. The appropriate source of funding for such projects is the Automobile Theft Prevention Authority in the Texas Department of Transportation. sec.3.2020. Continuation Funding Policies. (a) There is no commitment on the part of the Office of the Governor that a grant, once funded, will receive priority consideration for subsequent funding. CJD will fund local continuation projects only if the project is eligible under a community plan and the project is recommended in a COG's regional plan. Additionally, all continuation projects must be eligible for funding in accordance with the requirements set forth in this chapter; have completed all administrative, program and financial requirements; have a history of timely progress and financial reports; and CJD must have the funds available. Continuation applications must follow all guidelines in this chapter and are subject to the same review, selection, award, and other procedures as all other applicants. (b) Applicants for projects currently funded under a funding source wishing to apply under a different funding source may not request more money under the new fund than they were eligible to receive under the original funding source. Additionally, the project must comply with all policies and guidelines applicable to the new funding source beginning the first day of the grant period. (c) Except under VOCA, VAWA, and TNCP, CJD will not provide additional funds to enhance current grant projects or provide any funds to enhance a project previously funded by CJD. 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 July 23, 1998. TRD-9811700 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 Division 2. General Grant Budget Requirements 1 TAC sec.sec.3.3045, 3.3050, 3.3055, 3.3060, 3.3065, 3.3066, 3.3067, 3.3070, 3.3075 The new and amendments are proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.3045. Personnel. The following policies apply to all grant-funded, cash match-funded, or in-kind personnel. (1)
                                                                                                                                                                                                                                                                                                                                                                                                  Salaries for CJD-funded positions must comply with the grantee's classification schedule and be deemed reasonable by CJD. If the grantee does not have such a schedule, then an applicant must demonstrate in the application that the proposed salary is commensurate with others paid in the geographic area for similar work and experience. In any event, CJD will determine whether or not a salary is reasonable and deserves the right to limit the CJD financed portion of any salary.
                                                                                                                                                                                                                                                                                                                                                                                                    (2)
                                                                                                                                                                                                                                                                                                                                                                                                      Applicants must provide a copy of relevant licenses or certifications of staff members paid by the grant and of in-kind match personnel, if they are currently on staff. Where staff is not currently hired, the grantee may provide copies of these documents as soon as the staff member is hired. Peace officer certifications are exempt from this policy.
                                                                                                                                                                                                                                                                                                                                                                                                        (3)
                                                                                                                                                                                                                                                                                                                                                                                                          All grant-paid peace officers must maintain a current TCLEOSE certification.
                                                                                                                                                                                                                                                                                                                                                                                                            (4)
                                                                                                                                                                                                                                                                                                                                                                                                              The grantee must document all grant funded and in-kind positions with time and attendance records. These records must indicate the number of hours worked each day on the project, the signature of the employee, and the signature of the supervisor. For law enforcement and prosecution grants, these time sheets must also indicate the actual time, for example, 7:00 AM to 3:00 PM, and the case or cause numbers or other indicators of assignments for audit and monitoring purposes.
                                                                                                                                                                                                                                                                                                                                                                                                                (5)
                                                                                                                                                                                                                                                                                                                                                                                                                  CJD will not fund staff positions for less than 25% of full- time. Additionally, if a staff member is paid partially from CJD funds, then explain from what sources the remainder of the salary is paid in the application. Grants to the regional councils of government for planning or law enforcement academy grants are exempt from this rule.
                                                                                                                                                                                                                                                                                                                                                                                                                    (6)
                                                                                                                                                                                                                                                                                                                                                                                                                      CJD will not approve any salary increase from year-to-year unless the grantee provides adequate justification in the grant application to show the basis for the increase as well as to demonstrate that the increase is reasonable. CJD will determine whether the justification provided is sufficient and the increase is reasonable.
                                                                                                                                                                                                                                                                                                                                                                                                                        (7)
                                                                                                                                                                                                                                                                                                                                                                                                                          The grantee cannot provide overtime pay for any personnel from grant funds or matching funds, including program income used to match.
                                                                                                                                                                                                                                                                                                                                                                                                                            (8)
                                                                                                                                                                                                                                                                                                                                                                                                                              Except as otherwise indicated in this chapter, staff positions that existed prior to the grant are ineligible for CJD funds.
                                                                                                                                                                                                                                                                                                                                                                                                                                (9)
                                                                                                                                                                                                                                                                                                                                                                                                                                  If the grantee agency transfers an existing employee to a grant position, then the agency must fill that person's original position within 120 days. The grantee's number of non-grant staff members, therefore, cannot decrease because of the grant award.
                                                                                                                                                                                                                                                                                                                                                                                                                                    (10)
                                                                                                                                                                                                                                                                                                                                                                                                                                      CJD will not allow grantees to reallocate personnel funds that are not expended because of a vacancy to other budget line items, either within the personnel category or in other categories.
                                                                                                                                                                                                                                                                                                                                                                                                                                        [(1) Salaries for CJD funded positions must comply with the established classification system of the grantee agency. If no classification exists, salaries for grant paid personnel must be commensurate with those of non-grant paid personnel of similar rank and experience.] [(2) The grantee must document all personnel positions with time and attendance records. These records should include the number of hours worked each day on the project, the signature of the employee, and the signature of the supervisor.] [(3) Positions for less than 25% of full time are not eligible. Councils of governments are exempt from this rule. [(4) CJD will not approve any salary increase from year to year unless the grantee provides adequate justification in the grant application. CJD will determine whether the justification provided is sufficient.] [(5) Overtime pay for any personnel cannot be paid from grant funds.] [(6) Staff positions that existed prior to the grant are ineligible for CJD funds.] [(7) If the grantee agency transfers an existing employee to a grant position, then the agency must fill that person's original position within 120 days. The grantee's number of non-grant staff members, therefore, cannot decrease because of the grant award.] [(8) If a grant paid position becomes vacant, the grantee must fill the position within 60 days. If the grantee is unable to fill the position within 60 days, the grantee must request an extension from CJD in writing.] [(9) If a grant paid position remains vacant for any period of time, the funds in the approved budget for that purpose are lost and may not be reallocated to other budget schedules.] sec.3.3050. Professional and Contractual Services. (a) An individual may not receive dual compensation from a regular employer and the retaining grantee for work performed during the same period of time even if the services performed benefit both. (b) The contractual arrangement must be written, formal, and consistent with the grantee's usual practices for obtaining such services and CJD requirements.
                                                                                                                                                                                                                                                                                                                                                                                                                                          (c) The grantee must provide adequate documentation to support time and services and the rates of compensation. (d) Transportation and subsistence costs for travel by consultants must be at an identified rate consistent with the CJD travel policy.
                                                                                                                                                                                                                                                                                                                                                                                                                                            [the grantee's general travel reimbursement practices.] (e) Contracts must ensure that the work or services claimed for reimbursement are directly and exclusively devoted to the grant. (f) The grantee must advertise any ongoing contract to purchase services annually through a competitive procurement process. Any contract must include a statement that if CJD funds are no longer available, the contract is void.
                                                                                                                                                                                                                                                                                                                                                                                                                                              The grantee must [also] document in project records the procurement process and the criteria used to select contractors. [The grantee may extend existing contracts temporarily to continue services already underway.] (g) All contracts or group of contracts to a single vendor that are
                                                                                                                                                                                                                                                                                                                                                                                                                                                in excess of $15,000 require CJD approval in advance.
                                                                                                                                                                                                                                                                                                                                                                                                                                                  The grantee may submit such contracts, including sole-source justification, if applicable, with the grant application or, at the grantee's option, immediately following the grant award, but prior to the grantee's obligating or expending any funds. If the grantee chooses the latter option, it must transmit each contract including sole-source justification, if applicable, to CJD by a letter signed by the authorized official named in the grant or by the person designated in the grantee acceptance notice to initiate grant adjustments. (h) A grantee may not expend more than the amount listed for any service included in the CJD maximum rate schedule. (i) Any person or vendor that participates directly
                                                                                                                                                                                                                                                                                                                                                                                                                                                    in writing an invitation for proposal or a grant application cannot benefit financially from that contract or any CJD
                                                                                                                                                                                                                                                                                                                                                                                                                                                      grant award. (j) Grantees must disclose related party transactions, such a transaction occurs when a grantee enters into the contract with an individual or an organization to which a member of the grantee organization has a personal or business relationship.
                                                                                                                                                                                                                                                                                                                                                                                                                                                        [tie.] The applicant must include an
                                                                                                                                                                                                                                                                                                                                                                                                                                                          [An] explanation of any such arrangement must be included in the grant application. (k)
                                                                                                                                                                                                                                                                                                                                                                                                                                                            Grantees must maintain documentation for audit and monitoring purposes to show how over-sight of contracts is accomplished, including all records of this oversight.
                                                                                                                                                                                                                                                                                                                                                                                                                                                              (l)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                [k] Stated below are the maximum allowable rates of payment, or valuation of in-kind contributions, for selected types of personal services that may require purchase from a source external to the grantee. All professional and contractual services must be within the CJD maximum rate schedule below: (1) [Costs for individual] Individual
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  consultants . Generally
                                                                                                                                                                                                                                                                                                                                                                                                                                                                    [generally] may not exceed $450
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      [$150] per day or $56.25
                                                                                                                                                                                                                                                                                                                                                                                                                                                                        [$18.75] per hour. Under unusual circumstances, CJD will approve an additional amount per day for individual consultants. Such approval must be in advance. Before CJD gives approval, the approval of the Office of Justice Programs is required if federal funds are involved.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                          The rate must be based on the prevailing market rate for the type of work being performed. The payment may include actual time for preparation, evaluation, and travel, in addition to the time for the presentation. The grantee may also pay for travel and subsistence costs. Eligible under State Criminal Justice Planning Fund, Juvenile Justice and Delinquency Prevention Act Fund, Title V Delinquency Prevention Fund, Victims of Crime Act Fund, Texas Narcotics Control Program, Crime Stoppers Assistance Fund, and Safe and Drug-Free Schools and Communities. (2) [Costs for consultants] Consultants
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            associated with educational institutions .
                                                                                                                                                                                                                                                                                                                                                                                                                                                                              [may not exceed the] The
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                maximum daily rate, which is the consultant's annual academic salary, divided by 260. Eligible under State Criminal Justice Planning Fund, Juvenile Justice and Delinquency Prevention Act Fund, Title V Delinquency Prevention Fund, Victims of Crime Act Fund, Texas Narcotics Control Program, Crime Stoppers Assistance Fund, and Safe and Drug- Free Schools and Communities. (3) [CJD will approve compensation for consultants] Consultants
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  employed by state and local governments . CJD will approve compensation for these consultants
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    only when the unit of government cannot provide these services without cost. In such cases, the rate of compensation is not to exceed the daily salary rate paid by the unit of government. Eligible under State Criminal Justice Planning Fund, Juvenile Justice and Delinquency Prevention Act Fund, Title V Delinquency Prevention Fund, Victims of Crime Act Fund, Texas Narcotics Control Program, Crime Stoppers Assistance Fund, and Safe and Drug-Free Schools and Communities. (4) [The grantee must procure consultants employed by for] For
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      profit and nonprofit corporations . The grantee must procure consultants employed by these organizations
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        through competitive bidding. These costs are not subject to any maximum rate. Eligible under State Criminal Justice Planning Fund, Juvenile Justice and Delinquency Prevention Act Fund, Title V Delinquency Prevention Fund, Victims of Crime Act Fund, Texas Narcotics Control Program, Crime Stoppers Assistance Fund, and Safe and Drug-Free Schools and Communities. (5) A full battery psychological evaluation includes a diagnostic interview and history; an individual intelligence test; an organicity-perceptual test; a wide- range achievement test; a projective and objective test; a vocational test; an aptitude test; or a review and evaluation with written narrative report by a licensed psychologist. The maximum cost per evaluation is $212.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          [$175] Eligible under State Criminal Justice Planning Fund, Juvenile Justice and Delinquency Prevention Act Fund, Title V Delinquency Prevention Fund only, and Safe and Drug-Free Schools and Communities. (6) Individual or family psychological counseling must be directly performed by a licensed psychologist, licensed counselor, licensed social worker (
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            [, or] advanced clinical practitioner ).
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Administrative expenses and communications with family or other agencies are part of the cost per counseling hour. The provider may not bill as a separate and additional cost. The maximum cost per hour is $66. Eligible under State Criminal Justice Planning Fund, Juvenile Justice and Delinquency Prevention Act Fund, Title V Delinquency Prevention Fund, Victims of Crime Act Fund, and Safe and Drug-Free Schools and Communities. (7) Group psychological counseling for children must have a maximum of eight members in group and session must be 1.5 hours per session. Services must be performed by a licensed psychologist, licensed counselor, licensed social worker (
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                [, or] advanced clinical practitioner ).
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Administrative expenses and communication with family, referral source, or other agencies are part of the cost per counseling hour. The provider may not
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    bill as a separate and additional cost. The maximum cost per individual per session is $28. Eligible under State Criminal Justice Planning Fund, Juvenile Justice and Delinquency Prevention Act Fund, Title V Delinquency Prevention Fund, Victims of Crime Act Fund, and Safe and Drug-Free Schools and Communities. (8) Individual or family chemical dependency counseling . A
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      [a] licensed chemical dependency counselor or a Certified Alcohol and Drug Abuse Counselor (CADAC) must perform these services. Administrative expenses and communication with family, referral source, or other agencies are part of the cost per counseling hour. The provider may not bill as a separate and additional cost. The maximum cost per hour is $47. Eligible under State Criminal Justice Planning Fund, Juvenile Justice and Delinquency Prevention Act Fund, Title V Delinquency Prevention Fund, and Safe and Drug-Free Schools and Communities. (9) Group chemical dependency counseling must have a maximum of eight persons in the group and the session must be 1.5 hours per session. A licensed chemical dependency counselor or a CADAC must directly perform these services. Administrative expenses and communication with family, referral source, or other agencies are part of the cost per counseling hour. The provider may not bill as a separate and additional cost. Maximum cost per individual per session is $16. Eligible under State Criminal Justice Planning Fund, Juvenile Justice and Delinquency Prevention Act Fund, Title V Delinquency Prevention Fund, and Safe and Drug-Free Schools and Communities. (10) Psychiatric diagnostic interview or examination including history, mental status, and recommended disposition. The provider must include communications with family, school, or referral source in the maximum fee. A licensed psychiatrist must directly perform these services. The maximum cost per hour is $120.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        [$80.] Eligible under State Criminal Justice Planning Fund, Juvenile Justice and Delinquency Prevention Act Fund, Title V Delinquency Prevention Fund, and Safe and Drug-Free Schools and Communities. (11) Individual medical psychotherapy must be performed directly by a licensed psychiatrist. The maximum cost per hour is $90.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          [$70.] Eligible under State Criminal Justice Planning Fund, Juvenile Justice and Delinquency Prevention Act Fund, Title V Delinquency Prevention Fund, Victims of Crime Act Fund, and Safe and Drug-Free Schools and Communities. (12) Group medical psychotherapy [must have a] (
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            maximum of eight persons per group )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              [and] must be one to one and one half hours per person per session. The maximum cost per hour per person is $40.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                [$30.] Eligible under State Criminal Justice Planning Fund, Juvenile Justice and Delinquency Prevention Act Fund, Title V Delinquency Prevention Fund, Victims of Crime Act Fund, and Safe and Drug-Free Schools and Communities. (13) General physical examination and report by form or narrative, including routine laboratory tests and x-rays. Can be used for court-ordered residential placement only. [The maximum cost per examination is $75.] Grantee may pay actual costs.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Eligible under State Criminal Justice Planning Fund and Juvenile Justice and Delinquency Prevention Act Fund. (14) Emergency office calls and necessary medical treatment while a juvenile is in court-ordered residential placement. When a juvenile requires emergency services, the grantee may award contracts without competitive procurement to qualified service providers. The grantee must document in project records the nature of the emergency. Grantees may pay actual costs within the limits of the CJD approved budget.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Eligible under State Criminal Justice Planning Fund, Juvenile Justice and Delinquency Prevention Act Fund, Title V Delinquency Prevention Fund, and Safe and Drug-Free Schools and Communities. (15) Purchase of prescribed medication while a juvenile is in court-ordered residential placement. Grantees may pay actual costs. Eligible under State Criminal Justice Planning Fund, Juvenile Justice and Delinquency Prevention Act Fund, Title V Delinquency Prevention Fund, and Safe and Drug-Free Schools and Communities. (16) Dental examination required for court-ordered residential placement including charting history, oral visual examination, radiographs, and form completion. Grantees may pay actual costs.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      [The maximum cost per examination is $50.] Eligible under State Criminal Justice Planning Fund and Juvenile Justice and Delinquency Prevention Act Fund. (17) [Residential care for juveniles determined to need] Level I [care through the use of the Texas Common application for Placement of Children in Residential Care. Such are includes] primary 24-hour care and supervision for juveniles 10 to 17 years old, placed by a juvenile court in a licensed or certified foster family home, foster group home, or a basic child care institution, when the primary reason for placement is a family or home condition rather than the juvenile's behavior. Juveniles at this level of care typically need an environment that provides maintenance and ensures emotional and physical well- being in a family-oriented setting. The maximum cost per day is $16.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        [$18.] Eligible under State Criminal Justice Planning Fund and Juvenile Justice and Delinquency Prevention Act Fund. (18) [Residential care for juveniles determined to need] Level II [care through the use of the Texas common Application for Placement of Children in Residential Care. Such care includes] specialized 24-hour care and supervision for juveniles 10-17 years old; placed by a juvenile court, in a licensed or certified therapeutic foster family home, foster group home, or basic child care institution, when the primary reason for placement is a need for basic care plus intensive individual attention and supervision because of a physical, mental, or behavioral problem. Juveniles at this level of care need consistency, reassurance, regular parenting, and development of normalized social skills. The maximum cost per day is $34.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          [$42.] Eligible under State Criminal Justice Planning Fund and Juvenile Justice and Delinquency Prevention Act Fund. (19) [Residential care for juveniles determined to need] Level III [care through the use of the Texas Common Application of Children in Residential Care. Such are includes] intermediate 24-hour care and supervision for juveniles 10 to 17 years old; placed by a juvenile court, in a licensed or certified therapeutic foster family home; therapeutic foster group home, basic child care facility, residential treatment center, wilderness camp, halfway house, or habilitative foster family or foster group home, when the primary reason for placement is a need for basic care plus structure, educational support, a higher level of supervision, and the development of normalized social skills. The maximum cost per day is $58. Eligible under State Criminal Justice Planning Fund and Juvenile Justice and Delinquency Prevention Act Fund. (20) [Residential care for juveniles determined to need] Level IV [care though the use of the Texas Common application for Placement of Children in Residential Care. Such care includes] therapeutic 24-hour care and supervision for juveniles 10 to 17 years old; placed by a juvenile court, in a licensed residential treatment center or in a therapeutic or wilderness camp when the primary reason for placement is a severe emotional or behavioral problem resulting in the juvenile's inability to function in the home, school, or community. Juveniles at this level of care have physical, mental, and emotional needs and behaviors that may present a low to moderate risk of causing harm to themselves or others. They require physical environments and treatment programs in which most activities are therapeutically designed to improve social, emotional, and educational adaptive behavior. The juveniles may require psychological or psychiatric services that are integrated into the residential program to assess and monitor admission, discharge, and treatment plans. The maximum cost per day is $83. Eligible under State Criminal Justice Planning Fund and Juvenile Justice and Delinquency Prevention Act Fund. (21) [Residential care for juveniles determined to need] Level V [care through the use of the Texas common application for Placement of Children in Residential Care. Such care includes] intensive 24-hour care and supervision for juveniles 10 to 17 years old, placed by a juvenile court, in a licensed basic child care facility, a therapeutic camp, a residential treatment center, or a substance abuse treatment facility certified by the Texas Commission on Alcohol and Drug Abuse, when the primary reason for placement is a need for treatment of severe emotional or behavior disorders or conditions that require a highly structured program to improve functioning or maintenance. Such juveniles may present a moderate to severe risk of causing harm to themselves or others. The maximum cost per day is $101. Eligible under State Criminal Justice Planning Fund and Juvenile Justice and Delinquency Prevention Act Fund. (22) [Residential care for juveniles determined to need] Level VI [care through the use of the Texas Common Application for Placement of Children in Residential Care. Such care] includes in-patient-psychiatric 24-hour care and supervision for juveniles 10 to 17 years old; placed by a juvenile court, in an in-patient psychiatric hospital accredited by JCAH (Joint Commission for the Accreditation of Hospitals) and licensed by Texas Department of Mental Health and Mental Retardation as an in-patient psychiatric facility, when the primary reason for placement is a need for treatment of an acute or chronic emotional or behavioral disorder or condition that requires a highly structured program with 24-hour supervision to improve functioning or maintenance. Such juveniles may present a severe to critical risk of causing harm to themselves or others. The maximum cost per day is $188. Eligible under State Criminal Justice Planning Fund and Juvenile Justice and Delinquency Prevention Act Fund. (23) [Residential care for juveniles determined to need] Level VII [care through the use of the Texas Common Application for Placement of Children in Residential Care. Such care] includes emergency shelter 24-hour care and supervision for juveniles 10 to 17 years old, placed by a juvenile court or authorized officer of the court, in a licensed emergency shelter, when the primary reason for placement is an emergency. The maximum cost per day is $91. Eligible under State Criminal Justice Planning Fund and Juvenile Justice and Delinquency Prevention Act Fund. (24) A county may contract [with another county] for juvenile detention in a separate certified juvenile facility not located within an adult jail. The [local] juvenile detention facility must meet certification requirements set forth in
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            [board must inspect and certify the juvenile detention facility using the standards required by] Title 3 of the Texas Family Code .
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              [and the Texas Juvenile Probation Commission. Grantees must use the standard "Contract for Detention Services" available in the application kit. The grantee must complete the form and the authorized official and service provider must sign it.] The maximum cost per day is $85.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                [$91.] Eligible under State Criminal Justice Planning Fund and Juvenile Justice and Delinquency Prevention Act Fund. (25) The grantee may use CJD funds to contract for certified vocational training courses and for academic courses such as remedial education, special education for learning disabilities, and GED preparation for adjudicated juvenile offenders. Eligible costs for reimbursement under contract include tuition, instructional materials, tools, uniforms, and other expenses necessary for completion of the course of study and subsequent job placement. The grantee may not use CJD funds to supplant other funds for which juveniles are eligible. CJD must review and approve all costs that exceed $500 per student. Eligible under State Criminal Justice Planning Fund, Juvenile Justice and Delinquency Prevention Act Fund, Title V Delinquency Prevention Fund, and Safe and Drug-Free Schools and Communities. (26) The maximum cost per day for day treatment, supervision, and tracking programs is $59.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  [$30.] Eligible under State Criminal Justice Planning Fund and Juvenile Justice and Delinquency Prevention Act Fund. Service providers must deliver all of the following supervision and services to each eligible juvenile: supervision and tracking, with at least one daily contact seven days a week; restitution, including assistance in arranging employment or community service; individual or group counseling, with at least five contact hours per week; educational services, including daily contact with the school to verify attendance, returning truants to school, and arranging tutoring; job training or placement assistance; transportation, if needed, to and from appointments required as a condition of participating in the program; family involvement, with at least weekly contact between all immediate family members and the contractor's staff; prevention services, including recreation, with at least two hours a week of supervised activity to improve skills in using leisure time, interacting with others according to accepted rules, and learning appropriate ways to display aggressive behavior; and 24-hour crisis intervention, to assist in resolving critical problems. (27) Accounting or bookkeeping services. If an established organization provides such services, the grantee may accept the lowest responsive bid. If provided by an independent individual, then the maximum rate per hour is $56.25.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    [$18.75.] Eligible under all funds. (28) Auditing. If an established organization provides auditing, the grantee may accept the lowest responsive bid. If auditing is provided by an independent individual, the maximum rate per hour is $56.25.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      [$18.75.] Eligible under all funds , however, grantee agencies that receive less than $300,000 in combined federal funds are not eligible to use federal grant dollars to purchase an annual audit.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (29) Licensed attorney. The grantee may engage an attorney on a fee basis to provide training to staff and volunteers of the project engaged in delivering victim assistance. The grantee may also hire an attorney to secure protective orders if free services are not available,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          elder abuse petitions, and child abuse petitions. Where the grantee hires an attorney under the latter arrangement, the grantee must consult CJD for additional documentation required. The grantee must maintain audit records that account for the attorney's time on a case-by-case basis for services to victims. The time reflected in these records must amount to 100% of the time paid. No other attorney services are allowable as expenses of the grant project without prior CJD approval. The maximum rate per hour is $90.00. Eligible under Victims of Crime Act Fund only. (30) Parenting education. Eligible services include parenting effectiveness training or other recognized courses of instruction. The goal of this training is to strengthen and maintain the families of children. The purpose is to prevent or control behavior that leads to suspension or expulsion, referral to juvenile court, or dropping out of school. A licensed psychologist, licensed counselor, licensed social worker, or other qualified professional trainer approved by the school district must provide these services. Maximum of 10 persons per class. Cost includes all materials and instruction. Maximum cost per hour per person is $10. Eligible under State Criminal Justice Planning Fund, Juvenile Justice and Delinquency Prevention Act Fund, Title V Delinquency Prevention Fund, and Safe and Drug-Free Schools and Communities. (31) Temporary child care. A grantee may provide temporary child care to accommodate those parents needing it as a direct result of project activities. Maximum cost per hour per child is $3 with a limit of $15 per day. Eligible under State Criminal Justice Planning Fund, Juvenile Justice and Delinquency Prevention Act Fund, Title V Delinquency Prevention Fund, Victims of Crime Act Fund, and Safe and Drug-Free Schools and Communities. sec.3.3055. Transportation, Travel, and Training. (a)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            The grantee must limit mileage reimbursement for the use of a personal car to $.28 per mile and in-state per diem to $25 per day, unless the grantee's travel policy provides a lesser reimbursement. Hotel, car rental, airfare, and out-of-state per diem expenses must be according to the grantee agency's established policies. If the grantee does not have an established policy, it must use state travel guidelines for all travel and subsistence expenses as provided in the current state appropriations act. For more information on the state travel guidelines, contact the General Services Commission, Travel Management System, P. O. Box 13047, Austin, Texas 78711-3047, (512-463-3559).
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              [(a) The grantee must limit travel expenses to the grantee agency's established mileage and subsistence policies. If a grantee does not have an established policy, it must use state travel guidelines. (b)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Grantees must maintain adequate travel logs that include, at a minimum, dates, destinations, mileage amounts, and explanations of grant related activities performed during the travel.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  [(b) All travel expenses must be supported by documentation that indicates destinations and purposes for the travel. (c) The grantee must travel only for the purposes described in the original grant application or approved in advance by CJD through grant adjustment notices. (d) CJD will approve travel expenses only for persons assigned to the grant project and listed in the approved budget. CJD may take into consideration unusual circumstances and may approve travel requested in exception to this policy. CJD must approve such exceptions in advance. In juvenile court programs only, travel expenses incurred to return juvenile runaways to their homes are an exception. (e) CJD defines local travel as travel within the service area of the grant. (f) CJD defines in-state travel as travel within Texas for purposes related to the grant project and may include reimbursement for meals, lodging, and transportation costs. (g) Travel to points outside the state requires approval in advance by CJD through the original grant award or through a grant adjustment. CJD will make exceptions for law enforcement agencies actively involved in an investigation where out-of-state travel is immediately crucial to the investigation. In these cases, grantees should notify CJD of their action upon return and request a grant adjustment in writing. (h) All travel must be adequately justified in the budget narrative. (i) Grants to develop and provide training through conferences or academies may not use CJD funds or matching funds to pay for travel and subsistence for participants. (j)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Travel outside of the project's service area for training must directly relate to the delivery of services or to the central focus of the grant project. Travel for administrative training is not allowable if it is outside of the geographical boundaries of the regional council of governments that represents the county where the project is based.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      [(j) Travel for training must directly relate to the delivery of services or to the central focus of the grant period. Training for administrative purposes is not allowable.] (k) Registration fees for training conferences should be reflected in the travel and training budget schedule. (l) A person attending training funded by the grant must complete the course. If the person does not complete the course, the grantee must submit a reason in writing. If CJD does not approve the reason, the individual or the program represented is liable for repayment of expenses such as the registration fee and travel paid by grant funds. Grantees must maintain records in the project file, including training certificates and other records that show completion of training.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (m)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          The applicant must document in the application all in-state and out-of-state travel expenses by trip with destinations and purposes for the travel. This documentation must include budget detail showing how requested amounts were determined.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            sec.3.3060. Equipment. (a) CJD defines equipment as any item with a unit cost of $500 or more and any other item, regardless of the cost that
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              [unless] the grantee chooses to capitalize the equipment in its own accounting records. Also considered to be equipment are computer hardware or software and training and educational films or videos, regardless of cost. (b) CJD must approve items of equipment individually through the original grant award
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                [application] or in subsequent grant adjustment notices prior to purchase. CJD will base authorization on the grantee's demonstration that the requested equipment is necessary ,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  [and] essential to the successful operation of the grant project , and reasonable in cost.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (c) Equipment is an eligible expense only if it is part of a project that includes personnel assigned to the project.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      [a staff.] CJD may make exceptions in the cases of grants for innovative , cutting edge
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        technology used in the investigation of crime. Such equipment does not include general office equipment.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          (d) The grantee must use equipment only for the intended grant-related purposes, never for personal reasons. (e) All equipment purchases in excess of $15,000 require CJD approval as part of the special condition on equipment review and approval. A copy of this special condition is available in the application kit. A grantee is not exempt from this policy if the actual amount expended is less than $15,000 because of a trade-in allowance.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            (f) CJD will not fund vehicles and law enforcement equipment that are standard department issue [including weapons, patrol vehicles, and other equipment that is used by all law enforcement officers and is not required specifically for the purposes of the grant funded project]. sec.3.3065. Supplies and Direct Operating Expenses. (a) CJD defines supplies and direct operating expenses as those directly related to the day-to-day operation of the grant project and not included in the other budget categories. Allowable expenses include such items as office rent, utilities, office supplies, shared usage costs of office equipment,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              vehicle operating expenses, fidelity bonds, paper, printing, postage, classroom instructional supplies, production costs for public service announcements, educational resource materials, Yellow Page listings, vehicle leases, confidential funds, and emergency clothing purchases for juveniles referred to court, up to $150 per juvenile. (b) CJD will not approve funds for project promotion through paid advertisements , including Yellow Page advertisements,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                or for promotional gifts, such as matchbooks, bumper stickers, pens, T-shirts, or hats. (c) CJD may approve the lease of vehicles for law enforcement purposes only. These vehicles must be undercover or unmarked, or must be vehicles normally associated with organized crime control units, drug units or specialized units with similar functions. Lease-purchase of vehicles is not allowed. [(d) The grantee may use confidential funds for three types of law enforcement operations only. They are purchase of services for confidential investigative expenses, purchase of evidence, and purchase of specific information. Any projects funded by CJD that include the expenditure of confidential funds must strictly comply with all requirements governing use of confidential funds. The Office of Justice Programs sets these requirements in the OJP Financial Guide (Paragraph 62. Confidential Funds, and Appendix 7, Control and Use of Confidential Funds). Additionally, CJD applies a special condition to all grants involving the expenditure of confidential funds. A copy of this special condition is available in the application kit] (d)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  CJD will not approve funds to purchase admission fees or tickets to any amusement park, recreational activity, or sporting event.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (e)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Under no circumstances may funds be used to purchase food, meals, beverages, or other refreshments for meetings or program participants. CJD will not pay for these items and grantees may not use program income to purchase them.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (f)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          For juvenile grants, grantees cannot provide compensation to parents for attending meetings or classes.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            (g)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Justification for office rental must include the square footage of the space.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                (h)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  The grantee must have an allocation plan for shared office equipment or must maintain equivalent receipts and records.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (i)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Office rent and other occupancy costs including space needs must be reasonable and justifiable. Occupancy costs must be supported by submitting to CJD an allocation plan, lease agreement, and expenditure receipts or other approved methods of determining actual occupancy costs.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        sec.3.3066. Indirect Costs. Personnel expenses included in indirect costs should not be staff positions related to the grant but rather support or administrative staff expenses such as payroll services, legal services, staff supervision, etc. CJD will approve indirect costs in an amount not to exceed two-percent of the CJD direct costs approved in the grant award, unless the grantee has an approved cost allocation plan. If the applicant has such a plan they should include the page that indicates the indirect cost from their allocation plan with the application. Indirect costs are not allowed in all CJD funding sources. Consult Subchapter B, Fund Specific Grant Policies for information regarding the allowability of this expense by funding sources. sec.3.3067. Confidential Funds. (a) The grantee may use confidential funds for three types of law enforcement operations only: purchase of services for documented confidential investigative expenses, purchase of evidence, and purchase of specific information. (b) Any projects funded by CJD that include the expenditure of confidential funds must strictly comply with all requirements in the OJP Financial Guide (chapter 8, page 67, Confidential Funds). Applicants must attach a certification regarding the expenditure of confidential funds with the application and comply with any additional CJD guidelines in CJD Form RA-4A, including ensuring that all confidential funds cashiers are bonded. See CJD Forms packet. (c) If CJD no longer funds the grant and the grantee does not continue project activities, then the grantee must refund all accumulated confidential funds to CJD in the proportion of CJD funding. (d) Under no circumstances may confidential funds be used to pay confidential informants who are law enforcement officers or elected or appointed public officials. sec.3.3070. Program Income. (a) CJD defines program income as all fees, including asset [seizures and] forfeitures, bond forfeitures, interest income, royalties, and registration fees [,] generated by services, activities, or products provided through the grant project. CJD does not consider cash contributions, donations, restitution, and CJD funds as program income. The grantee must reflect all amounts earned as program income during the grant period on quarterly financial expenditure reports. (b) When program income is from funds forfeited or property forfeited and liquidated, the grantee must use funds for law enforcement activities funded by the grant. Under unusual circumstances, CJD may give approval to use it for other purposes. (c) Grantees must request, in writing, one of the following options for the use of program income. CJD must approve, in advance, any use of program income. [The only uses that CJD will approve are:] (1) The grantee may add program income to existing funds to use for purposes that further eligible program objectives. CJD encourages grantees to use program income during the grant year. If the grantee wants to carry funds forward to a future year, appropriate reasons must be given when requesting this option to use program income.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          [This option is the only possible use of funds under grants funded from Fund 421 or JJDP Act funds.] (2) The grantee may use program income as cash match. In this case, the grantee must identify this proposal in the grant application and CJD must approve it. Only TNCP projects do not need to receive advance approval to use this option but must identify the source of cash match in the application.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            (3) The grantee may use program income to lower the CJD portion of the grant project. To determine the amount of the reduction, subtract the program income from the total project costs. (d) If CJD no longer funds the grant and the grantee does not continue project activities, then the grantee must liquidate any forfeited property at auction. The grantee must then refund all accumulated program income and confidential funds to CJD in the proportion of CJD funding. In some cases, CJD may require that the CJD share of program income and property be transferred to another grantee. sec.3.3075. Funding Limitations. CJD will not approve funds for construction, land acquisition, or supplantation of federal, state, or local funds supporting existing programs or activities. CJD will approve funds to renovate buildings only for the purpose explained under sec.3.165 of this chapter.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              [In addition, CJD will not fund a project for the primary purpose of building renovation, other than in the cases listed in sec.3.165 of this title (relating to Renovation and Retrofitting). Additionally, no grantee may use CJD funds, matching funds, or program income to purchase food, meals, beverages, or other refreshments for meetings or program participants.] 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 July 23, 1998. TRD-9811685 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 Division 3. Special Conditions and Required Documents 1 TAC sec.sec.3.4000, 3.4015, 3.4025, 3.4055, 3.4070, 3.4075, 3.4080, 3.4095 The new rules are proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.4000. Community Plan Eligibility Form. All requests for local and regional funding must be accompanied by this form along with a list of participants in the planning process. All applications for local or regional grants must be in response to needs identified in a current community plan.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Community plans are fully discussed in sec.3.2000 of this title (relating to Community Plans). sec.3.4015. Certification Regarding Lobbying. Certification Regarding Lobbying. All applications in excess of $100,000 under the Juvenile Justice and Delinquency Prevention Act Fund, Title V Delinquency Prevention Fund, Texas Narcotics Control Program, and Safe and Drug-Free Schools Fund must include a signed copy of this certification. It certifies that: (1) no federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with the awarding of any federal contract, the making of any federal grants, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement; (2) if any non-federal funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of an agency, a member of Congress, and officer or employee of Congress, or an employee of a member of Congress in connection with this federal contract, grant, loan, or cooperative working agreement, the undersigned shall indicate and complete and submit the standard form "Disclosure Form to Report Lobbying," in accordance with its instructions; and (3) the language of this certification be included in the award documents for all sub-awards at all tiers and that all sub-recipients shall certify accordingly. (4)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Each grantee must file the most current edition of this certification and disclosure form, if applicable, with each submission that initiates agency consideration for an award of a federal contract, grant or cooperative agreement of $100,000 or more.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (5)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1592, Title 31, U.S.C. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000, and not more than $100,00 for each such failure.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        sec.3.4025. Drug-free Workplace Certification. (a) All applications under the Juvenile Justice and Delinquency Prevention Act Fund, Title V Delinquency Prevention Fund, Texas Narcotics Control Program, and Safe and Drug-Free Schools Fund must include a signed copy of this certification. It certifies that the grantee will provide a drug-free workplace by: (b) Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employees for violation of such prohibition. (c) Establishing a drug-free awareness program to inform employees about the dangers of drug abuse in the workplace; the grantee's policy of maintaining a drug-free workplace; any available drug counseling, rehabilitation, and employee assistance programs; and the penalties that may be imposed upon employees for drug abuse violations. (d) Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by subsection (a) of this section. (e) Notifying the employee in the statement required by paragraph (a)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          [(A)] that, as a condition of employment under the grant, the employee will abide by the terms of the statement and notify the employer of any criminal drug statute conviction for a violation occurring in the workplace not later than five days after such conviction. (f) Notifying the agency within ten days after receiving notice under subsection (e) of this section from an employee or otherwise receiving actual notice of such conviction. (g) With respect to any employee who is so convicted, the agency will take appropriate personnel action against such an employee, up to and including termination or require such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a federal, state, or local health, law enforcement, or other appropriate agency. (h) Making a good faith effort to continue to maintain a drug-free workplace through the implementation of paragraphs (a)-(g) of this section. sec.3.4055. Single Audit Act Certification. (a) All applications for [Texas Narcotics Control Program] grants must include a signed copy of this certification. It certifies that the grantee assures compliance by itself and its applicable sub-recipients (contractors) with the Single Audit Act of 1996, PL 104 - 156
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            [1984, PL 98-502 (ACT)] and, particularly, with the requirements of OMB Circular A-133
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              [A-128] that states: (1)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Grant(s) expenditures of $300,000 or more in federal funds. An annual single audit by an independent auditor made in accordance with the Single Audit Act Amendments of 1996 and OMB Circular A-133.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  [(1) receipt of grant funds of $100,000 or over requires an annual audit by an independent auditor made in accordance with the requirements of OMB Circular A- 128; or] (2)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Grant(s) expenditures of $300,000 or more in state funds. An annual single audit by an independent auditor made in accordance with the Uniform Grant Management Standards (UGMS).
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      [(2) receipt of grant funds of $25,000 to $100,000 requires an annual audit made in accordance with OMB Circular A-128 or in accordance with federal laws and regulations governing the program; or] (3)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Grant(s) expenditures of less than $300,000 in federal funds. Exempt from the Single Audit Act. However, CJD may require a limited scope audit as defined OMB Circular A-133.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          [(3) receipt of grant funds of less than $25,000 are exempt from the Act but governed by audit requirements prescribed by state or local law or regulation.] (4)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Grant(s) expenditures less than $300,000 but $50,000 or more in state funds. A fund-specific audit.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              (5)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Grant(s) expenditures less than a total of $50,000 in state funds. Financial statements audited in accordance with Generally Accepted Auditing Standards (GAAS).
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  (b)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Grantees exempt from the Single Audit Act requirements (i.e. those expending less than $300,000 in total federal financial assistance) are prohibited from charging the cost of a Single Audit to a Federal award.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      [(b) If items from subsection (a)(1) or (2) of this section apply, the grantee must, within 60 days following the date of the grant award, furnish the identity of the organization conducting the audit, approximate time audit will be conducted, or audit coverage to be provided. (c) The grantee should, within 60 days following the date of the grant award, furnish the following information:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (1)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          The identity of the organization conducting the audit. (2)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Approximate time audit will be conducted.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              (3)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Audit coverage to be provided.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  sec.3.4070. Certified Assurances. All applications for CJD funding must include a signed copy of these assurances. It certifies that the grantee agency will comply with the regulation, policies, guidelines and requirements including OMB Circulars No. A-122, A-110, A-102, [and] A-87, and A-21,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    as they relate to the application, acceptance, and use of funds for this project. Also the applicant assures and certifies to the grant that: (1) It possesses legal authority to apply for the grant; that a resolution, motion, or similar action has been duly adopted or passed as an official act of the applicant's governing body, authorizing the filing of the application including all understandings and assurances contained therein, and directing and authorizing the person identified as the official representative of the applicant to act in connection with the application and to provide such additional information as may be required. (2) It will comply with requirements of the provisions of the Uniform Relocation Assistance and Real Property Acquisitions Act of 1970 (P. L. 91-646) which provides for fair and equitable treatment of persons displaced as a result of Federal and federally assisted programs. (3) It will comply with the minimum wage and maximum hours provisions of the Federal Fair Labor Standards Act, as they apply to hospital and educational institution employees of state and local governments. (4) It will establish safeguards to prohibit employees from using their positions for a purpose that is or gives the appearance of being motivated by a desire for private gain for themselves or others, particularly those with whom they have family, business, or other ties. (5) It will give the sponsoring agency or the Comptroller General through any authorized representative the access to and the right to examine all records, books, papers, or documents related to the grant. (6) It will comply with all requirements imposed by the federal sponsoring agency concerning special requirements of law, program requirements, and other administrative requirements. (7) It will insure that the facilities under its ownership, lease, or supervision that shall be utilized in the accomplishment of the project are not listed on the Environmental Protection Agency's (EPA) list of Violating Facilities and that it will notify the federal [or state] grantor agency of the receipt of any communication from the Director of the EPA Office of Federal Activities indicating that a facility to be used in the project is under consideration for listing by the EPA. (8) It will comply with the flood insurance purchase requirements of sec.102(a) of the Flood Disaster Protection Act of 1973, Public Law 93-234, 87 Stat. 975, approved December 31, 1976. Section 102(a) requires, on and after March 2, 1975, the purchase of flood insurance in communities where such insurance is available as a condition for the receipt of any federal financial assistance for construction or acquisition purposes for use in any area that has been identified by the Secretary of the Department of Housing and Urban Development as an area having special flood hazards. (9) It will assist the grantor agency in its compliance with sec.106 of the National Historic Preservation Act of 1966 as amended (16 U. S. C. 470), Executive Order 11593, and the Archeological and Historic Preservation Act of 1966 (16 U. S. C. 469a-1 et seq.) by consulting with the State Historic Preservation Officer on the conduct of investigations, as necessary, to identify properties listed in or eligible for inclusion in the National Register of Historic Places that are subject to adverse effects as stated in 36
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      [6] CFR Part 800.8 by the activity, and notifying the grantor agency of the existence of any such properties, and by complying with all requirements established by the grantor agency to avoid or mitigate adverse effects upon such properties. (10) It will comply with the Uniform Grant [and Contract] Management Standards (UGMS)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        [UGCMS] developed under the directive of the Uniform Grant [and Contract] Management Act, Chapter 183, Texas Government Code. (11) It, if a county, has taken or will take all action necessary to provide the Texas Department of Criminal Justice and the Department of Public Safety any criminal history records maintained by the county in the manner specified for the purposes of those departments. (12) It will comply with Title VI of the Civil Rights Act of 1964, 42 USC 2000d which prohibits discrimination on the basis of race, color, or national origin, Section 504 of the Rehabilitation Act of 1964, 42 USC, 794 which prohibits discrimination on the basis of handicap, the Age Discrimination Act of 1975, 42, USC 6101, et seq., and the Department of Justice Nondiscrimination Regulations, 28 CFR, Part 42, Subparts C, D, and G. (13) It will, in the event a federal or state court or federal or state administrative agency makes a finding of discrimination after a due process hearing, on the ground of race, color, religion, national origin, sex, age, or handicap against the project, forward a copy of the finding to the Criminal Justice Division (CJD). (14) It will comply with Subtitle A, Title II of the Americans With Disabilities Act (ADA), 42 U.S.C 12131-12134, and Department of Justice implementing regulation, 28 CFR Part 35, whereas state and local governments may not refuse to allow a person with a disability to participate in a service, program, or activity simply because the person has a disability. (15) It will comply with the following sections of the Juvenile Justice and Delinquency Prevention Act, USC 5671 as amended:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          [(c) (1)] (a) (12) (A), regarding removal of status offenders from secure facilities; (a) (13), regarding sight-and-sound separation of juveniles from adults when detained in the same secure facility; (a) (14), regarding removal of juveniles from adult jails and lockups .
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            [; and (a)(23), regarding reduction of the disproportionate confinement of racial and ethnic minorities in secure facilities.] (16) It will comply with the provisions of the Hatch Act, which limit the political activity of employees. (17) It will comply, and assure the compliance of all its contractors, with the applicable provisions of Title I of the Omnibus Crime Control and Safe Streets Act of 1968, as amended, the Juvenile Justice and Delinquency Prevention Act, or the Victims of Crime Act, as appropriate; the provisions of the current edition of the Office of Justice Programs Financial Guide; and all other applicable federal laws, circulars, or regulations. (18) It will comply with the provisions of 28 CFR applicable to grants and cooperative agreements including Part 18, Administrative Review Procedure; Part 20, Criminal Justice Information Systems; Part 22, Confidentiality of Identifiable Research and Statistical Information; Part 23, Criminal Intelligence Systems Operating Policies; Part 30, Intergovernmental Review of Department of Justice Programs and Activities; Part 42, Nondiscrimination/Equal Opportunity Policies and Procedures; Part 61, Procedures for Implementing the National Environmental Policy Act; Part 63, Floodplain Management and Wetland Protection Procedures; and federal laws or regulations applicable to federal assistance programs. (19) It will comply, and all its contractors will comply, with the nondiscrimination requirements of the Omnibus Crime and Safe Streets Act of 1968, as amended, 42 USC 3789(d), the Juvenile Justice and Delinquency Prevention Act, or the Victims of Crime Act (as appropriate); Title VI of the Civil Rights Act of 1964, as amended; Section 504 of the Rehabilitation Act of 1973, as amended; Subtitle A, Title II of the Americans with Disabilities Act of 1990; Title IX of the Education Amendments of 1972; the Age Discrimination Act of 1975; Department of Justice Non-Discrimination Regulations, 28 CFR Part 42, Subparts C, D, E, and G; and the Department of Justice regulations on disability discrimination, 28 CFR Part 35 and Part 39. (20) It will provide an Equal Opportunity Program if required to maintain one, where the application is for $500,000 or more. (21) It will comply with the provisions of the Coastal Barrier Resources Act (P.L. 97-348) dated October 19, 1982 (16 USC 3501, et seq.), which prohibits the expenditure of most new federal funds within the units of the Coastal Barrier Resources System. (22)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Federal Funds made available under this formula grant will not be used to supplant state or local funds, but will be used to increase the amounts of such funds that would, in the absence of federal funds, be made available for law enforcement activities.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                (23)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Matching funds required to pay the non-federal portion of the cost of each program and project, for which grant funds are made available, shall be in addition to funds that would otherwise be made available for law enforcement by the recipients of grant funds.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (24)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Fund accounting, auditing, monitoring, and such evaluation procedures as may be necessary to keep such records as CJD or the Comptroller General shall prescribe, shall be provided to assure fiscal control, proper management, and efficient disbursement of funds under the grant.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (25)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          It shall maintain such data and information and submit such reports, in such form, at such times, and containing such information as CJD may require.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            (26)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              The programs contained in its application meet all requirements, that all the information is correct, that there has been appropriate coordination with affected agencies, and that the applicant will comply with all provisions of the grant and all other applicable federal and state laws, regulations, and guidelines.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                (27)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Pursuant to Sections 223(a)(18) of the JJDP Act, the Grantee assures that procedures have been established to ensure that programs funded under the JJDP Act shall not disclose program records containing the identity of individual juveniles. Exceptions to this requirement:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (A)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      authorization by law;
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (B)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          consent of either the juvenile or his legally authorized representative; or
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            (C)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              justification that otherwise the functions of this title cannot be performed.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                (D)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Under no circumstances may public project reports or findings contain names of actual juvenile service recipients.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    sec.3.4075. Confidential funds Certification. (a) All applications that include a line item for confidential funds must include a signed copy of this certification. It certifies that the applicant has read, understands, and agrees to abide by all of the conditions for confidential funds as set forth in subsections (a)-(i) of this section. (b) Confidential expenditures include the following types of purchases and may be authorized for subgrants at the state, county, and city level of law enforcement. (1) Purchase of Services (P/S). This category includes travel or transportation , meals and necessary expenses
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      of a non-federal officer or an informant when directly associated with a documented investigation. For under cover purposes, it also includes
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        the lease of an apartment, business front, luxury-type automobile, aircraft or boat, or similar effects to create or establish the appearance of affluence; and/or meals, beverages, entertainment, and similar expenses for undercover purposes, within reasonable limits. (2) Purchase of Evidence (P/E). This category is for the purchase of evidence and/or contraband such as narcotics and dangerous drugs, firearms, stolen property, counterfeit tax stamps, etc., required to determine the existence of a crime or to establish the identity of a participant in a crime. (3) Purchase of Specific Information (P/I). This category includes the payment of moneys to an informant for specific information. All other informant expenses would be classified under P/S and charged accordingly. (4)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          A documented investigation is an investigation that has an assigned Task Force number and documents investigative actions that can be directly related back to the P/S.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            (c) Confidential funds are those moneys allocated to purchase of services, purchase of evidence, and purchase of specific information. These funds should be allocated only when the particular merits of a program or investigation warrant the expenditure of these funds or when requesting agencies are unable to obtain these funds from other sources. (d) Confidential funds are subject to prior approval by CJD. Such approval will be based on a finding that they are a reasonable and necessary element of project operations. In this regard the approving agency must also ensure that the controls over disbursement of confidential funds are adequate to safeguard against the misuse of such funds. CJD will make this determination from a review of the grant application and the receipt of a signed certification. A signed certification that the project director has read, understands, and agrees to abide by the provisions of the guideline is required from all projects that are involved with confidential funds from either federal or matching funds. The signed certification must be approved at the time of grant application. (e) Each project authorized to disburse confidential funds must develop and follow internal procedures which incorporate the following elements. Deviations from the following elements must receive prior approval of the Criminal Justice Division. (1) Imprest Fund. The funds authorized will be established in an imprest fund controlled by a bonded cashier. (2) Advance of Funds. The supervisor of the unit to which the imprest fund is assigned must authorize
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              [authorized] all advances of funds. Such authorization must specify the purpose of the information to be received, the amount of expenditures, and the assumed name of the informant. (3) Informant files are confidential files of the true names, assumed names, and signature of all informants to whom payments of confidential expenditures have been made. To the extent possible, pictures and fingerprints of the informant payee should also be maintained. (4) The cashier shall receive, from the agent or officer authorized to make a confidential payment, a receipt for cash advanced to him/her for such purposes. The agent or officer shall receive from the informant payee a receipt for cash paid to him/her. (5) An informant payee receipt shall identify the exact amount paid to and received by the informant payee on the date executed. Cumulative or anticipatory receipts are not permitted. Once the receipt has been completed no alteration is allowed. The agent shall prepare an informant payee receipt containing the following information: the jurisdiction initiating the payment; a description of the information/evidence received; the amount of payment, both in numerical and word form; the date on which the payment was made; the signature of the informant payee; the signature of the case agent or officer making payment; the signature of at least one other officer witnessing the payment; and the signature of the first-line officer authorizing and certifying the payment. (6) The signed receipt from the informant payee with a memorandum detailing the information received shall be forwarded to the agent or officer in charge. The agent or officer in charge shall compare the signatures. He/she shall also evaluate the information received in relation to the expense incurred, and add his/her evaluation remarks to the report of the agent or officer who made the expenditures from the imprest fund. The certification will be witnessed by the agent or officer in charge on the basis of the report and informant payee's receipt. (7) Each project shall prepare a reconciliation report on the imprest fund on a quarterly basis. Information included in the reconciliation report will be the assumed name of the informant payee, the amount received, the nature of the information given, and to what extent the information contributed to the investigation. Grantees shall retain the reconciliation report in their files available for review. (8) Each project must retain records of each confidential fund transaction. At a minimum, these records must consist of all documentation concerning the request for funds, processing (to include the review and approval/disapproval), modifications, closure or impact material, and receipts and/or other documentation necessary to justify and track all expenditures. In projects where grant funds are used for confidential expenditures, it will be understood that all of the above records, except the true name of the informant, are subject to the record and audit provisions of the grantor agency legislation. (f) Special accounting and control procedures should govern the use and handling of confidential expenditures, as described below: (1) It is important that expenditures which conceptually should be charges to PE / PI / PS are in fact so charged. It is only in this manner that these funds can be properly managed at all levels and accurate forecasts of projected needs can be made. (2) Each law enforcement entity should apportion its PE / PI / PS allowance throughout its jurisdiction and delegate authority to approve PE/ PI/ PS expenditures to those officers, as it deems appropriate. (3) Headquarters management should establish guidelines authorizing offices to spend up to a predetermined limit of their total allowance on any one buy or investigation. (4) In exercising his/her authority to approve these expenditures, the supervisor should consider the significance of the investigation; the need for this expenditure to further that investigation; and anticipated expenditures in other investigations. Funds for PE/ PI/ PS expenditures should be advanced to the officer for a specific purpose. If they are not expended for that purpose, they should be returned to the cashier. They should not be used for another purpose without first returning them and repeating the authorization and advance process based on the new purpose. (5) Funds for a PE / PI / PS expenditure should be advanced to the officer on a suitable receipt form. A receipt for purchase of information or a voucher for purchase of evidence should be completed to document funds used in the purpose of evidence or funds paid or advanced to an informant. (6)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                For security purposes, there should be a 48-hour limit on the amount of time funds advanced for PE/PI/PS expenditure may be held outstanding. If it becomes apparent at any point during the 48-hour period that the expenditure will not materialize, then the funds should be returned to the advancing cashier as soon as possible. An extension to the 48-hour limited may be granted by the level of management that approved the advance. Factors to consider in granting such an extension are the amount of funds involved, the degree of security under which the funds are being held, how long the extension is required, and the significance of the expenditure. Such extensions should be limited to 48 hours. Beyond this, the funds should be returned and readvanced, if necessary. Regardless of circumstances, within 48 hours of the advance, the fund cashier should be presented with either the unexpended funds, an executed voucher for payment for information or purchase of evidence or written notification by management that an extension has been granted.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  [(6) For security reasons, there should be a limit on the amount of time that funds may be held outstanding. In metropolitan areas where field agents have a timely access to their headquarters, there should be a weekly reconciliation of outstanding funds. In rural areas where agents are more than a hundred miles from their headquarters, reconciliation of outstanding funds should be done every two weeks. If it becomes apparent that during this time the expenditure will not materialize, then the funds should be returned to the advancing cashier as soon as possible. An extension to the established time period may be granted by the level of management that approved the advance. Factors to consider in granting such an extension are the amount of funds involved, the degree of security under which the funds are being held, how long an extension is required, and the significance of the expenditure. Such extensions should be limited to a week for metropolitan areas and two weeks for rural areas. Beyond this, the funds should be returned and advanced again, if necessary. Regardless of the circumstances, within the designated time limit, the fund cashier should be presented with the unexpended funds, an executed voucher for payment of confidential expenditures, or written notification by management that an extension has been granted.] (7) Purchase of services expenditures, when not endangering the safety of the officer or informant, need to be supported by canceled tickets, receipts, lease agreements, mileage logs which indicate the destination and purpose of travel, etc. If not available, the office head, or his/her immediate subordinate, must certify that the expenditures were necessary and justify why supporting documents were not obtained. (g)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    [(h)] All persons who will be used as informants should be established as such.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      The specific procedures required in establishing a person as an informant may vary from jurisdiction to jurisdiction but, at a minimum, should include the following: (1) Assignment of an informant code name to protect the informant's identity; (2) An informant code book controlled by the office head or his/her designee containing an informant's code name, the type of informant (i.e., informant, defendant/informant, restricted-use/informant), the informant's true name, the name of the establishing law enforcement officer, the date the establishment is approved, and the date of deactivation. (3) Establish each informant file in accordance with subsection (g)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        [(h)] (2) of this section. (4) For each informant in an active status, the agent should review the informant file on a quarterly basis to assure it contains all relevant an current information. Where a material fact that was earlier reported on the Establishment Record is no longer correct (e.g., a change in criminal status, means of locating him/her, etc.) a supplemental establishing report should be submitted with the correct entry. (5) All informants being established should be checked in all available criminal indices. If a verified FBI number is available, request a copy of criminal records from the FBI. Where a verified FBI number is not available, the informant should be fingerprinted with a copy sent to the FBI and appropriate State authorities for analysis. The informant may be used on a provisional basis while awaiting a response from the FBI. (6) A separate file should be established for each informant for accounting and security purposes. Informant files should be kept in a separate and secure storage facility, segregated from any other files, and under the exclusive control of the office head or an employee designated by him/her. The facility should be locked at all times when unattended. Access to these files should be limited to those employees who have a necessary legitimate need. An informant file should not leave the immediate area except for a review by a management official or the handling agent, and should be returned prior to the close of business hours. Sign-out logs should be kept indicating the date, informant number, time in and out, and the signature of the person reviewing the file. An informant file should include: (A) Informant Payment Record, kept on top of file. This record provides a summary of informant payments. (B) Informant Establishment Report, including complete identifying and locating data, plus any other documents connected with the informant's establishment. (C) Current photograph and fingerprint card (or FBI/State Criminal Identification Number). (D) Agreement with cooperating individual. (E) Receipt for purchase of information. (F) Copies of all debriefing reports (except for the Headquarters case file). (G) Copies of case initiation reports bearing on use of the informant (except for Headquarters case file). (H) Copies of statements signed by the informant (unsigned copies will be placed in appropriate investigative files). (I) Any administrative correspondence pertaining to the informant, including documentation of any representations made on his/her behalf or any other nonmonetary considerations furnished. (J) Any deactivation report or declaration of an unsatisfactory informant. (h)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          [(i)] Any person who is to receive payments charged against PE / PI funds should be established as an informant. This includes persons who may otherwise be categorized as sources of information or informants under the control of another agency. The amount of payment should be commensurate with the value of services and/or information provided and should be based on the level of the targeted individual, organization, or operation; the amount of the actual or potential seizure; and the significance of the contribution made by the informant to the desired objectives. (i)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            [(j)] Documentation of payments to informants is critical and should be accomplished on a receipt for purchase of information. Payment should be made and witnessed by two law enforcement officers and authorized payment amounts should be established and reviewed by at least the first-line supervisory level. [In unusual circumstances, a non-officer employee or an officer of another law enforcement agency may serve as a witness.] In all instances, the original signed receipt must be submitted to the project director for review and record keeping. There are various circumstances in which payments to informants may be made. (1) Payments for Information and/or Active Participation. When an informant assists in developing an investigation, either through supplying information or actively participating in it, he/she may be paid for his/her service either in a lump sum or in staggered payments. Payments for information leading to a seizure, with no defendants, should be held to a minimum. (2) Payment for Informant Protection. When an informant needs protection, law enforcement agencies may absorb the expenses of relocation. These expenses may include travel for the informant and his/her immediate family, movement and/or storage of household goods, and living expenses at the new location for a specific period of time (not to exceed six months). Payments for these expenses may either be lump sum or as they occur, and should not exceed the amounts authorized to be paid to law enforcement employees for these activities. (3) Payments to Informants of Another Agency. If another agency's informant is to be used or paid, he/she should be established as an informant. These payments should not be a duplication of a payment from another agency; however, sharing a payment is acceptable. (4)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Under no circumstances may confidential funds be used to pay confidential informants who are law enforcement officers or elected or appointed public officials.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                sec.3.4080. Regional Law Enforcement Training. Applications to operate regional law enforcement academies must abide by all of the following requirements: (1)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Grantee must provide the following with the six month progress report: a summary list of schools conducted during the six-month period which lists the dates of the school, number of classroom hours for the course, name of the specific courses, number of students enrolled, number of students completed, and number of total contact hours for the course. Actual TCLEOSE reports do not have to be submitted to CJD, but must be maintained by the grantee and be available for CJD review during monitoring or audit reviews.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    [(1) Within 14 days after completion of each training school, the grantee shall submit to the Criminal Justice Division (CJD) a completed copy of the Report of Training form as required by the Texas Commission on Law Enforcement Officer Standards and Education (TCLEOSE). The grantee must indicate which students completed the training school and list the agency that each student represented.] (2) The training academy providing services must be appropriately licensed by TCLEOSE. Any training course paid for with CJD funds must result in participants receiving credit hours from TCLEOSE. (3) Peace officer training courses shall be open to all local peace officers as defined in the Texas Code of Criminal Procedure, article 2.12, on an equal basis. Reserve law enforcement officers, law enforcement radio dispatchers, and jailers are also eligible for training provided by CJD grant funds; however, dispatcher and jailer training is limited to basic training courses only. (4) Funding for Basic Peace Officer Certification courses will be limited to the TCLEOSE mandated contact hours for each trainee, unless the grantee provides adequate justification for additional hours. sec.3.4095. Plan for Juvenile Justice and Delinquency Prevention Act Compliance. (a)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      After the award of a grant, grantees should refer to the Statement of Grant Award for specific special conditions applicable to the approved project. CJD will assign the following special conditions at the time of grant award, when applicable. Additionally, if deficiencies identified for an application are not resolved by the time of grant award and CJD determines that the deficiencies are not serious enough to deny funding or that the applicant has made a good-faith effort to resolve the deficiencies, CJD will assign special conditions to the grant. These special conditions may include the submission of outstanding required attachments. Until satisfied, these special conditions will affect the grantee's ability to access funds. If special conditions are not resolved, CJD may deobligate the entire amount of the grant award.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        [When a grantee under the Juvenile Justice and Delinquency Prevention Act or Title V Delinquency Prevention Fund has been found by CJD to not be in compliance with the mandates of the Juvenile Justice and Delinquency Prevention Act as described in sec.3.4065 of this title (relating to Juvenile Justice and Delinquency Prevention Act Compliance Certification), CJD will place this special condition on the grantee. This special condition requires a plan and timetable, describing steps to be taken to achieve full compliance with this federal mandate, including use of these grant funds for that purpose. A copy of the plan and timetable shall be submitted to the Criminal Justice Division.] (b)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          When a grantee under the Juvenile Justice and Delinquency Prevention Act Fund or Title V Delinquency Prevention Fund is not in compliance with the mandates of the JJDP Act, CJD will place this special condition on the grantee.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            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 July 23, 1998. TRD-9811686 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 1 TAC sec.sec.3.4030, 3.4045, 3.4065, 3.4090, 3.4130 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Office of the Governor or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The repeals are proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.4030. Certification of Fiscal Responsibility. sec.3.4045. Contract for Detention Services. sec.3.4065. Juvenile Justice and Delinquency Prevention Act Compliance Certification. sec.3.4090. Procuring Consultants and Services. sec.3.4130. Texas Narcotics Conrol Program Certified Assurances. 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 July 23, 1998. TRD-9811673 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 1 TAC sec.sec.3.4100, 3.4105, 3.4115, 3.4120, 3.4125, 3.4135, 3.4140, 3.4145, 3.4150, 3.4155 The new and amendments are proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.4100. Equipment Review and Approval. (a) Prior to obligating or expending grant funds for equipment purchases in excess of $15,000, a grantee shall submit the following documentation to the Criminal Justice Division for review and approval. Documents must be transmitted by a letter signed by the Authorized Official named in the grant or by the person designated in the "Grantee Acceptance Notice" to initiate grant adjustments. (1) A brief narrative description of the procurement procedures used. (2) An unequivocal statement of which low compliant bid was selected. (3) A list of vendors requested to bid or respond. (4) A copy of the public advertisement. (5) A copy of the Request for Proposal (RFP) or the Invitation for Bid (IFB) with bid specifications. (6) One copy of the awarded bid. All other responses will be kept on file by the grantee.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              [each response.] (7) Bid tabulation sheet. (8) When a grantee does not accept the apparent low bid, a description of the selection process used to select the successful bidder, with a copy of the evaluation of all proposals. The transmittal letter must state the reasons why a bid is rejected when a higher bid is selected. (9) A copy of sales or purchase contract, if applicable. (b) A grantee, must at a minimum, comply with its own procurement procedures and the Local Government Code. (c) Requests for proposal or invitations for bid issued by the grantee or a subgrantee to implement the grant or subgrant project are to provide notice to prospective bidders that the CJD organizational conflict of interest provision is applicable in that contractors who develop or draft specifications, requirements, statements of work and/or RFPs for a proposed procurement shall be excluded from bidding or submitting a proposal to compete for the award of such procurement. (d) State agencies using the purchasing services of the General Services Commission are [to] exempted from submitting bidding documentation to CJD for review and approval prior to purchasing equipment. This requirement is especially important when only one compliant bid is received. sec.3.4105. Contract Review and Approval. (a) All contracts or groups of contracts with a single vendor that are
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                in excess of $15,000 will be submitted to CJD for approval prior to grantee obligating or expending any grant funds for contractual services. Each contract should be transmitted by a letter signed by the authorized official named in the grant or by the person designated to initiate grant adjustments and be accompanied by the following: (1) a brief narrative description of the procurement procedures used and an unequivocal statement of which low compliant bid was selected; (2) a list of vendors requested to bid or respond (State agencies using the purchasing service of the State Purchasing and General Services Commission are not exempted from this requirement. Requests for Proposal (RFP) or Invitations for Bid (IFB) issued by the grantee to implement the grant project are to provide notice to prospective bidders that the CJD organizational conflict-of- interest provision is applicable in that contractors who develop or draft specification, requirements, statements of work, and/or RFPs for proposed procurement shall be excluded from bidding or submitting a proposal to compete for the award of such contract or order.); (3) a copy of the public advertisement; (4) a copy of the RFP or the IFB, with specifications; (5) a copy of the awarded
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  [each] response .
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    [;] All other responses will be kept on file by the grantee;
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      (6) a description of the selection process used to select the successful bidder, with a copy of the evaluation of all proposals; (7) if only one response is received, an explanation of why only one response was received, and (8) if sole source procurement is necessary, (i.e., contract is awarded to any organization without conducting a formal advertising and competitive bidding process or without soliciting proposals from potentially qualified contractors) or if only one bid was received, the documents submitted to CJD must include an explanation for having selected the sole source contractor. The explanation shall include the signature, title, and organization of the Authorized Official named in the grant or of the person designated to initiate grant adjustments. An example of the justification for sole source procurement is when there is only one existing service provider who can perform or provide the required services or goods. (b) Two or more contracts exceeding $15,000 with one individual or firm are subject to these provisions and require CJD approval. (c) Justification for sole source procurement must be presented in a format according to the outline prescribed by CJD in the application kit. sec.3.4115. Interagency Agreement Review and Approval. All applications for multi-jurisdictional task forces under the Texas Narcotics Control Program must
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        [should] include an interagency agreement with each agency that will be reimbursed with federal funds because of their direct involvement
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          [involved directly] in the task force project. The grantee must submit for review and approval a copy of an interagency agreement between the grantee and each agency of the task force receiving CJD funds.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            The interagency agreement must include a detailed budget including personnel, travel, equipment, and other operating expenses that are to be reimbursed from grant funds and a copy of the CJD
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Certified Assurances and Equal Employment Opportunity Program certification from each agency. sec.3.4120. Forfeiture Audit Certification and Forms. All law enforcement agencies and attorneys representing the state must account for the seizure, forfeiture, receipt and specific expenditure of all proceeds and property in an audit. The commissioners' court or the governing body of a municipality, as appropriate, must perform this audit annually in the form prescribed by CJD. The grantee must submit a certified copy of the audit report to CJD no later than 30 days after the end of the local fiscal year for law enforcement agencies and no later than October 1 of each year for the attorneys representing the state. Law enforcement agencies receiving grant funds for a project that receives seized or forfeited assets must submit a separate report for the grant period. Additionally, Article 59.06 Code of Criminal Procedure requires all law enforcement agencies and attorneys representing the state, regardless of whether they seize or forfeit assets or receive CJD funding, to report annually to CJD. If an agency does not seize or forfeit assets during an annual reporting period, a letter stating such by the deadlines indicated above will satisfy this requirement.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                [All applications for projects that may involve the seizure and forfeiture of assets and property must have an audit of such activities and submit it to CJD along with a signed copy of this certification within 30 days after the audit. It certifies that all law enforcement agencies and attorneys representing the state who receive proceeds or property under sec.59.06(g) Code of Criminal Procedure, shall account for the seizure, receipt, and disbursement of all such proceeds and property in an audit, which is to be performed annually by the commissioners court or governing body of a municipality, as appropriate. The audit shall be completed in the form prescribed by the Criminal Justice Division of the Office of the Governor. Certified copies of the audit shall be delivered by the law enforcement agency or attorney representing the state to the Criminal Justice Division of the Office of the Governor no later than 30 days after the audit is completed.] sec.3.4125. Historically Underutilized Businesses. All CJD grantees must make a good faith effort to encourage these businesses to bid for contracts and services. To report this effort, grantees must submit a completed copy of the HUB-PAR form, available from the Criminal Justice Division, with each quarterly financial expenditure report. A HUB is any business in which at least 51% of the equity is owned, operated, and controlled by one or more women, Black, Hispanic, Asian, Pacific Islander, or Native American.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  sec.3.4135. Resolutions. Applicants must include in each local application a resolution from the local governing body (i.e., city council, county commissioners' court, school board, or board of directors) that authorizes submission of the application to CJD and that clearly identifies the project for which funding is requested. The resolution should include a commitment for cash match, if applicable. If the applicant is not providing all of the matching funds, then the other participating entities who are providing portions of any cash match must also submit resolutions. In nonprofit organizations where the authorized official is not the executive officer, the resolution can give the executive director the power to accept, reject or alter a grant. The resolution must state that in the event of loss or misuse of CJD funds, the governing body assures that the funds will be returned to CJD in full. For nonprofit organizations, this statement must assure CJD that the governing body will secure a fidelity bond covering the full amount of CJD funds upon acceptance of any grant award. See Bonding and Insurance under section sec.3.6070 of this chapter.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    sec.3.4140. Texas Review and Comment System (TRACS). (a) The Texas Review and Comment System (TRACS) provides opportunities for state and local officials to review and comment on applications affecting their jurisdictions prior to final funding action. The only applications exempted from this policy are those under the Crime Stoppers Assistance Program. All others must submit a copy of their application for TRACS review. (b) Applicants for local projects meet this requirement by submitting their applications to the appropriate regional council of governments. Any applicant that receives a favorable comment in a TRACS review is not guaranteed that their application will be prioritized by the COG or that CJD will fund the application. A favorable comment only means that the application is acceptable according to regional or state priorities and is not a funding recommendation.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      (c)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Copies of applications for statewide projects must be submitted to the single point of contact at the Governor's Office of Budget and Planning; Attention: Mr. Tom Adams; Post Office Box 12428; Austin, Texas 78711. This copy must be submitted for TRACS review before the application is submitted to CJD.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          sec.3.4145. Map of Service Area. If the service area of a proposed local or regional application is not an entire city or county or group of entire cities and counties, then applications must submit a map that shows the service area. This map should indicate specifically where the boundaries of the target area are within the city, county or group of cities and counties. This map should not exceed 8.5" x 11". sec.3.4150. Organization Chart. All applicants must submit a staff organization chart for their project that shows both grant-paid and non-grant-paid personnel. If a staff member is paid partially from CJD funds, then attach a note explaining from what sources the remainder of the salary is paid. If the grantee makes changes to the organization during the year, the grantee must submit a revised copy of the organization chart to CJD. sec.3.4155. Post Award Survey. When there is some question about whether an application meets all eligibility requirements, CJD may award the grant with a post-award survey. When this condition is placed on a grant, a CJD staff member will visit the project after award to make a final eligibility determination. CJD will not release funds to the project until that determination is made. 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 July 23, 1998. TRD-9811702 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 Division 4. Award and Grant Acceptance 1 TAC sec.sec.3.5000, 3.5004, 3.5005 The new and amendments are proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.5000. Notification of Award. [CJD will notify all applicants of final action on a grant in accordance with the Texas Review and Comment System.] Each grantee must accept or reject a grant award within 45 days of the grant award date. Failure by the grantee to execute the grantee acceptance notice within this time period and promptly forward that notice to CJD shall be construed as a rejection of the grant award and the funds will be deobligated.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            In addition, each grantee must implement the grant within 60
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              [45] days of the designated start date indicated on the statement of grant award. Failure to do so will be construed by CJD as the grantee's relinquishment of the grant award. Any exception to this rule will require the review and written approval of the CJD executive director. sec.3.5004. Submission and Selection Process. (a) When an application is received at CJD, there is no commitment on the part of CJD to fund the application or to fund it at the amount requested. All areas of the budget are subject to review and approval by the staff of the Governor's Office. Decisions related to these budget areas are based on both eligibility and reasonableness. Determinations of the reasonableness of budget items are fully within the discretion of the Governor's office and are made both through objective tools and the use of subjective decision making. (b) Once an application has undergone an initial review, CJD will send a deficiency report to the applicant. For local and regional projects, this is accomplished through the regional councils of governments and applicants must send their resolutions to deficiencies to the criminal justice planner at the COG by the deadline set by the COG. For statewide projects, these reports are sent directly to the applicant and resolutions may be returned directly to CJD. These reports are preliminary assessments only and do not represent any final action or determination by the Office of the Governor. Receipt of a deficiency report is not a commitment to fund any portion of the project. Additional deficiencies may be identified after the date of a deficiency report. It is within the complete discretion of the Governor's Office to determine whether a deficiency will result in notification to the applicant and a request for resolution or whether a funding cut will be made without resolution by the applicant. (c) Applications for funding go through many reviews at the Office of the Governor. At any point during those reviews a decision to not fund a project or any part of it may be made and those decisions are within the complete discretion of the office. Additionally, if an award is made, it is still within the discretion of the Governor's Office to determine that the grantee is not complying with CJD policies and may upon such a determination deobligate the grant and require reimbursement to CJD of grant funds already disbursed. (d) All funding decisions related to CJD grants are fully within the discretion of the Governor or his designee. CJD informs the applicant of this decision through either a Statement of Grant Award or a denial letter. Applicants must not make any assumptions regarding funding decisions until they have received official notification of award or denial that is signed by either the Governor or the executive director of the Criminal Justice Division. (e) Applicants must not contact staff members of the Criminal Justice Division to lobby in support of an application. Additionally, under no circumstances, may a grantee use grant-funded equipment, supplies, personnel, or indirect costs to influence or encourage others to influence the outcome of a grant funding decision by the Governor's Office except as allowed under the official appeal process explained below. Only the forms submitted, prior CJD records, and the prioritization of the COGs, if applicable, will be considered by CJD staff when reviewing the application. No other supporting documentation, letters, or phone calls influence this review. (f) Each grantee must accept or reject a grant award within 45 days of the grant award date. Failure to complete and return the Grantee Acceptance Notice, included in the award packet, within this time period will be considered a rejection of the grant award and the funds will be deobligated. Additionally, each grantee must implement the project within 60 days of the designated start date indicated on the Statement of Grant Award. CJD will consider the failure to do so as the grantee's relinquishment of the grant award. Any exception to this rule will require the review and written approval of the CJD executive director. sec.3.5005. Appeal Process. (a)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                If CJD decides not to fund an application or any part of an application, an applicant may notify CJD of their intent to appeal the decision by writing to the executive director of CJD within 10 days from the date of notification. If the basis for the appeal involves actions by the regional council of governments, then applicants must pursue a remedy at the COG level before presenting information for an appeal to CJD. Further, appeals must be based on a verifiable error made during the prioritization or review process and the applicant must be able to show that the error actually caused the application or portion of the application not to be funded. The applicant should submit written documentation in support of the appeal.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  [If CJD does not fund an application, an applicant may appeal the decision by writing to the Governor through the executive director of CJD within 10 days of the date of the notification. The applicant should submit written documentation in support of the appeal. The Governor or his designee will consider any documentation submitted by the applicant. The Governor's decision concerning an appeal is final.] (b)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Letters and phone calls of support will not be considered s part of the official appeal process. The Governor or his designee will consider any documentation submitted by the applicant that meets the criteria as explained in this section. The decision concerning an appeal is final.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt. Filed with the Office of the Secretary of State, on July 23, 1998. TRD-9811687 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 Division 5. Administering Grants 1 TAC sec.sec.3.6000, 3.6010, 3.6015, 3.6020, 3.6025, 3.6030, 3.6040, 3.6045, 3.6050, 3.6055, 3.6060, 3.6065, 3.6070, 3.6075, 3.6080, 3.6090, 3.6095 The new and amendments are proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.6000. Grant Officials. Each grant must have three persons designated to serve as grant officials: (1) The project director must be an employee of the applicant agency or from the contractor organization, at the applicant's option, who will be responsible for operation or monitoring of the project and be able to readily answer questions about its day-to-day operations.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        [The project director cannot be the same person as the financial officer.] (2) The financial officer must be the chief financial officer of the applicant agency. Such officials include county auditor, city treasurer, comptroller, and treasurer of the nonprofit corporation's board. The financial officer cannot be the same person as the project director or the authorized official.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          (3) The authorized official is the person authorized to apply for, accept, decline, or cancel the grant for the applicant agency. This person may be the executive director of the state agency, county judge, mayor, city manager, assistant city manager, or designee if authorized by the governing body etc. and the name must agree with the signature on application page CJD-1.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            sec.3.6010. Retention of Report Records. (a)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Except as indicated under sec.3.490 of this chapter, grantees must maintain all financial records, supporting documents, statistical records and all other records pertinent to award for at least three years following the closure of the most recent audit report. Retention is required for the purposes of federal and state examination and audit. Records may be retained in an electronic format. All of these records are subject to audit or monitoring during the entire retention period.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                [The grantee must maintain reports and source documentation for three years after completion of the grant period. These records are subject to audit by Comptroller General of the United States, state auditors or CJD monitors or auditors. If any legal action is pending on a grantee that involves the grant project, the grantee must retain the records for three years following resolution of the legal action or three years after the end of the grant period, whichever date is later.] (b)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Records for equipment, non-expendable personal property, and real property shall be retained for a period of three years from the date of the disposition or replacement or transfer at the discretion of CJD.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (c)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      If any litigation, claim, or audit is started before the expiration of the three-year period, the records shall be retained until all litigation, claims, or audit findings involving the records have been resolved. All of these records are subject to audit or monitoring during the entire retention period.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        sec.3.6015. Financial Reports. CJD requires each grantee to submit financial expenditure reports each calendar quarter. CJD provides the appropriate forms and instructions to each grantee along with deadlines for submission.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          The financial officer designated for the grant must sign and submit such reports. Failure to submit such reports on a timely basis will result in CJD placing grantees on financial hold and may affect future funding requests.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            sec.3.6020. Inventory Reports. CJD requires each grantee to maintain an inventory report on file of all equipment purchased as part of the grant project, including in-kind contributions. This report must agree with the final financial expenditure report. The grantee must submit it to CJD with the final progress report. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              sec.3.6025.Requests for Funds. Grantees must ensure that their final requests for funds are received or postmarked no later than the 90th day calendar day (liquidation date) after the end of the grant period. If this date falls on a weekend or federal holiday, then CJD will honor receipt or a postmark on the next business day. At that time, if grant funds are on hold for any reason, funds will lapse and cannot be recovered by the grantee. Under no circumstances will CJD make payments to grantees who submit their Request for Funds with a postmark after the above deadline. As a result, CJD advises grantees who are nearing this deadline to submit their Request for Funds via certified, registered, or overnight mail and retain the receipt.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                [Grantees must submit all requests for funds to CJD, to the attention of the director of accounting, in accordance with the instructions provided by CJD and in the form required by CJD. CJD will not honor requests for funds until the grantee satisfies all outstanding special conditions outlined on the statement of grant award or placed on the grantee after award. CJD will not make payments later than 90 days after the end of the grant period.] sec.3.6030. Grant Adjustments. (a) When it becomes necessary to change any significant program or budget element of a grant, the grantee may request a grant adjustment. This adjustment, if approved by CJD in writing, will allow the grantee to move funds between budget categories, change officials, revise the scope or target of the program, or alter project activities.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  The person designated in the grantee acceptance notice to request grant adjustments or the authorized official must sign all requests. CJD must approve an adjustment in advance through a grant adjustment notice mailed to the project director and the financial officer for the grant. (b) CJD will not consider more than four grant adjustments each grant year where the request is to alter the approved or previously amended budget. This allotment does not include changes in the names of officials, addresses, or phone numbers.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    CJD will only consider additional budget adjustments if CJD expressly requests the budget amendment for reasons other than to resolve deficiencies found during monitoring visits or other examinations of grantee records. (c) CJD will not allow
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      [honor] a request to reallocate personnel funds that are not expended because of a vacancy to other budget line items, either within the personnel category or to another budget category.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        [funds originally intended for personnel to other categories where the reason was a delay in hiring or a personnel vacancy. (d) CJD will record grant adjustments that request changes other than those to the budget or the activities of the program. Such changes of basic information will not be acknowledged in writing by CJD. (e) The grantee shall notify CJD in writing of any change of the designated project director, financial officer, or authorized official within five days following the change. When such notification records a change of the financial officer, the letter must include a sample signature of the new official. (f) Each grantee is responsible for initiating a grant adjustment. The request is usually accomplished through a letter, although any information that clarifies the request may be included. The grantee must secure CJD approval, through a grant adjustment notice, in advance and each request must include a detailed justification for any: (1) out-of-state travel that was not included by individual trip in the approved budget; (2) changes in the need, objectives, methodology, scope, or geographical location of the grant; transfers of funds among direct cost categories exceeding five percent of the total grant budget over the grant year; (3) changes in the number or job descriptions of personnel specified in the grant; (4) changes in equipment amounts, types, or methods of acquisition; (5) changes in the grant period or in the period for liquidating all encumbered funds; (6) decrease in the grantee cash contribution; (7) expenditure of program income not allocated in the approved budget; (8) new line items to be included in the budget or changes to existing line items; (9) cost-of-living and merit increases for a budgeted salary (grantees should include approval by the governing body citing the effective date of the increases); (10) payments to confidential informants exceeding $2,500; or payments of liens on forfeited vehicles or real estate. (g) A grantee may submit a written request for a grant extension. The executive director of CJD will approve such requests only in extraordinary circumstances. CJD will not extend a grant for more than 12 months. (h) CJD will not honor facsimile copies of grant adjustment requests and will not give verbal approvals. (i) No budgetary grant adjustment requests will be honored 30 days prior to the end of the grant period. (j) Over the course of the funding year, grantees may transfer funds between direct cost line items in different budget categories not to exceed a cumulative total of five percent of the grant budget during that year. All such budget transfers must comply with all relevant policies in this chapter. Adjustments must occur before funds are expended or were scheduled to be expended in the approved budget. Total transfers during a grant year that exceed five percent of the CJD portion of the grant budget require a grant adjustment.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          [Transfers in excess of five percent require an approved budget adjustment.] sec.3.6040. Copyrights. If the grantee used any CJD funds to purchase or receive a copyright or for a subcontractor to purchase or receive a copyright,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            CJD reserves a royalty- free and irrevocable license to reproduce, publish, use, or authorize others to use the copyrighted material. sec.3.6045. Procurement Procedures. (a) Prior to obligating grant funds for equipment purchases or professional or consultant services in excess of $15,000, the grantee must submit all documents to CJD for review and approval. A grantee is not exempt from this policy if the actual amount is lower than $15,000 because of a trade allowance.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              The grantee should submit documents with a letter signed by the authorized official named in the grant or by the person designated to initiate grant adjustments. The documents should contain: (1) a brief narrative description of the procurement procedures used and a statement of which low compliant bid was selected; (2) a list of vendors requested to bid or respond. (State agencies using the purchasing service of the General Services Commission of Texas are not exempt. Requests For Proposals (RFPs) or Invitations For Bids (IFBs) issued by the grantee to implement the grant project must provide notice to prospective bidders that the CJD organizational conflict-of-interest provision is applicable. This provision states that contractors that develop or draft specifications, requirements, statements of work, and RFPs for proposed procurement shall be excluded from bidding or submitting a proposal to compete for the award of such a contract.); (3) a copy of the public advertisement; (4) a copy of the RFP or the IFB, with specifications; (5) a copy of the response that received the contract (a copy of all responses must be kept on file by the grantee); (6) a description of the selection process used to select the successful bidder, with a copy of the evaluation of all proposals; (7) if sole-source procurement is necessary or if only one response is received, a justification for selecting the sole source or an explanation of why only one response was received [; and] long with a description of the program, what is being contracted for, and why it is necessary to contract non-competitively, such as expertise of the contractor, responsiveness and knowledge of the program, time constraints, and uniqueness. The outline for sole-source justification and a sample of the CJD contract form between a grantee and a third party is in the application kit available from a regional council of governments or CJD; and
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                (8) a copy of the proposed contract. (b) The standards and policies outlined in Office of Management and Budget's Common Rule, Section 36 (as included in the UGMS
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  [UGCMS]), are binding on all grantees. (c) Each state agency must comply with the provisions of chapter 2254, Texas Government Code, when securing consultant services. (d) Cities and counties must comply with the requirements governing advertising for bids, as outlined in chapters 252 and 262, Local Government Code, for cities and counties respectively. (e) State agencies contracting for professional or consultant services in excess of $15,000 are not required to submit to CJD a copy of the contract for approval. State law requires that agencies must submit such contracts to the General Services Commission of Texas for approval , however, a copy of such contract must be submitted to CJD for the project record.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (f) As is mandated by article 601b, Texas Civil Statutes, grantees must make a good-faith effort to encourage Historically Underutilized Businesses (HUBs) to bid on services for grant-funded projects and to report the amount of grant dollars contractually awarded to HUBs. A Historically Underutilized Business is defined as: a corporation formed for profit in which at least 51% of the equity is owned by one or more Black, Hispanic, Asian, Pacific Islander, Native American, or female person; a sole proprietorship 100% owned, operated, and controlled by such a person; a partnership in which such person(s) owns at least 51% of assets and interest and has proportionate control of partnership affairs; a joint venture of HUBs; or a supplier contract between a HUB and a prime contractor under which the HUB manufactures, distributes, or warehouses and ships the supplies. Grantees must report this information on the HUB-PAR form with the quarterly financial expenditure report. A copy of the Historically Underutilized Business Progress Assessment Report (HUB-PAR) is in the application kit. (g) Any lease-purchase in excess of $15,000 must be a result of competitive procurement.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      CJD will not approve lease-purchase agreements or leasing of computer systems (computer hardware and software) unless the applicant demonstrates that lease-purchase is cost-effective. Applicants requesting a lease-purchase should reflect the items , including a 50% match,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        in budget schedule D of the grant application forms and must attach justification for requesting the lease-purchase method. Any interest charges resulting from such a purchase are not allowable as expenditures under the grant. If approved, lease-purchase is subject to the same requirements for grantee contributions as equipment purchases. (h) The grantee will retain ultimate control of and responsibility for the grant project and any contractor shall be bound by grant agreements, grant conditions, and any other requirements applicable to the grantee. (i)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Grantees may make purchases up to $2,000 on a spot purchase basis, without comparative pricing.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            (j)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Purchases between $2,000.01 and $5,000 may require a minimum of three verbal bids based on identical specifications. The grantee is required to maintain records for audit that show the name, telephone number, date, and bid amount of each source contacted. The grantee must select the lowest compliant bid.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                (k)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Purchases between $5,000.01 and $15,000 require the grantee to issue written invitations for bids, using identical specifications, to a minimum of three prospective suppliers. Such invitations must clearly state the deadline for receipt of written bids. The grantee is required to maintain records for audit that include copies of all invitations and all written responses, including original signatures. The grantee must select the lowest compliant bid.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (l)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Purchases above $15,000 require formal newspaper advertising soliciting bids. The purchases must maintain records for audit that include copies of the advertisement(s) and all written responses, including original signatures. The grantee must select the lowest compliant bid.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (m)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          When the required services, supplies, or skills are so unique that the purchaser cannot identify a minimum of three prospective sources and the cost exceeds $2,000, the grantee must request guidance from CJD. In such cases, the grantee must provide to CJD a letter containing all relevant facts and a proposed course of action.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            (n)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Audit organizations and individual independent auditors typically will not respond to an invitation for bid, with precise specifications stipulated by the purchaser. In such cases, the purchaser should extend an invitation for proposal, which permits the prospective supplier to develop specifications and to quote a relevant cost. The grantee must select the most responsive proposal that meets their needs.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                (o)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  In all instances, prior to the delivery of services, a written contract must be executed to secure professional or consultant services.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    sec.3.6050. Property Management Standards. (a) CJD grantees shall use the property management standards included in the [Common Rule, sec.sec.31 through 36. The full text of the Common Rule is in the] Uniform Grant [and Contact] Management Standards UGMS
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      [UGCMS] published by the Governor's Office of Budget and Planning. Grantees must also comply with all applicable state and local laws and regulations. This section includes the rules most applicable to CJD grants. (b) Personal property includes all property other than real estate. It can be material property, such as equipment, or may be intangible, such as patents, copyrights, and inventions. (c) Nonexpendable personal property and equipment are material property having a useful life of more than one year and an acquisition cost of $500 or more per unit. A grantee may use its own definition of nonexpendable personal property provided that the definition includes at least all of material personal property as defined above. CJD also includes under this definition all computer hardware, computer software, and educational films and videos, regardless of the cost. (d) Grantees must restrict purchases of property to those items that are absolutely necessary to carry out the project effectively. In addition, grantees should be aware that CJD may disallow any cost associated with acquiring property if CJD determines that the property was unnecessary. (e) Grantees must maintain property records for all equipment purchased with any CJD funds. All property records must be in the official grant records and must be available for review by authorized CJD
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        personnel or their representatives
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          . (f) Property records must include copies of all purchase orders and invoices. They must also include an inventory listing with a description of all property; the manufacturer's serial number, model number, or identification number; the acquisition date; the location and condition of the property; the total acquisition cost including CJD funds and grantee's matching funds; and any ultimate disposition information including the date of disposal and the sale price. (g)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            [(h)] The grantee must use the property to carry out the activities of the grant-funded project unless CJD approves a request for other disposition or replacement. [(g) CJD requires a biennial equipment inventory for all equipment. This requirement is applicable beginning two years after the completion of the grant period. The grantee should retain the inventory for audit purposes.] (h)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              [(i)] When an item of equipment purchased in whole or in part with CJD funds is no longer efficient or serviceable but the grantee continues to need the equipment in its grant activities, the grantee may replace the property through trade-in or sale and purchase of new property, provided the following requirements are met. (1) Grantees must obtain written permission from CJD to use the provisions of this section prior to entering into negotiation for the replacement or trade-in of the equipment. (2) The value credited for the property, if a trade-in, is related to its fair market value. (3) The replacement equipment is used for the same purposes as the original equipment. (i)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                [(j)] Replacement of equipment is not a disposition of equipment and the CJD share of the equipment is transferred to the replacement. The CJD share of replacement equipment is a percentage of CJD's share of the proceeds from the sale or an amount credited for trade-in equal to the percentage of CJD's share in the original purchase price. Replacement equipment is subject to the same instructions on use and disposition as the equipment that it replaced. sec.3.6055. Disposition of Property. (a) If a grantee no longer funded by CJD purchased equipment in whole or in part with CJD funds, the grantee must write to CJD for instructions on the disposition of any piece of equipment with a current per-unit fair market value of $1,000
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  [$5,000] or more. Grantees may use equipment with a current per-unit fair market value of less than
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    [that] $1,000
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      [$5,000] for other activities without reimbursement to CJD. The grantee may also sell the equipment and retain the proceeds without CJD approval. (b) The request for disposition of property must include an explanation of the grantee's preferred disposition. CJD may instruct the grantee to do any of the following: (1) If the grantee wishes to continue to use the equipment in the project or in activities similar to those of the original project, CJD may approve such action and transfer title of the equipment to the grantee. (2) If the grantee wishes to use the equipment in activities that are not a part of the project or not in activities similar to those of the original project, CJD may approve transfer of the equipment, provided that the grantee makes compensation to CJD. The compensation to CJD is the percentage of the current per-unit fair market value of the equipment equal to the percentage of the CJD share of the original purchase price. (3) If the grantee no longer needs the equipment, CJD may approve sale of the property. If the grantee sells the property, then it must reimburse CJD for a percentage of the sale in an amount equal to the percentage of the CJD share in the original purchase price. (4) CJD may also instruct the grantee to transfer the equipment to another agency needing the property. If so instructed, the benefiting agency shall reimburse the grantee for the percentage of the current per unit fair market value equal to the percentage of the grantee's share in the original purchase price. (5) If CJD instructs the grantee to dispose of the property otherwise, CJD will reimburse the grantee for costs incurred in the disposition. sec.3.6060. Transfer of Title of Equipment and Nonexpendable Personal Property. CJD reserves the right to transfer title of grant-acquired property having a unit cost of $1,000
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        [$5,000] or more to the federal government or to a third party eligible under existing statutes. Such transfers are subject to the following standards: (1) The property must be identified in the grant or otherwise made known to the grantee in writing. (2) CJD will issue disposition instructions within 120 calendar days after the end of grant. If CJD does not issue disposition instructions within this period, the grantee, [under Grant Common Rule requirements, ] shall follow standards in [paragraph 86d(2) of] the OJP Financial Guide .
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          [, and under A 110 requirements, shall follow standards in paragraphs 87b(3) and 87d(3) of the OJP Financial Guide.] (3) When title to property is transferred, the grantee will be paid an amount calculated by applying the percentage of participation in the purchase to the current fair market value of the property. sec.3.6065. Transfer of Title of Real Property. Transfer of title of real property may be to CJD
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            [the grantor agency] or to a third party designated or approved by CJD
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              [the grantor agency]. The grantee or subgrantee will be paid an amount calculated by applying the grantee's or subgrantee's percentage of participation in the purchase of the real property to the current fair market value of the property. sec.3.6070. Bonding and Insurance. Each nonprofit agency receiving funds from CJD must obtain, have on file, and submit with the grant application a fidelity bond on any employee administering any grant funds. This bond must indemnify CJD against the loss and theft of the entire amount of CJD grant funds. The cost of such a bond is an eligible expense of the grant Continuation projects must submit a copy of the bond with the application for funding. New applications may submit a copy of the bond after they receive a grant award. If the grantee is self-insured they must submit documentation at the time of the application. Applicants other than nonprofit organizations, including state agencies, must include in the resolution from their governing board a statement that in the event of loss or misuse of CJD funds, the governing body assures that funds will be returned to CJD in full.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                sec. 3.6075.Withholding Funds. (a) CJD may withhold funds from a grantee. CJD will do so only when a grantee has failed to comply with established guidelines, grant conditions, or contractual agreements or when funds are depleted or insufficient to fund allocations. (b) CJD may withhold funds from a specific project for reasons that include, but are not limited to: (1) failure to comply with any applicable federal or state law, rule, regulation, policy, or guideline, or with the terms of any grant agreements; (2) failure to submit reports of expenditures and the status of funds, grantee progress reports, or special required reports at the times and in the form established for such reporting; (3) significant deficiencies or irregularities in records maintained by the grantee or its agent of operation and administration; (4) failure to conduct the grant project according to the terms of the application for a grant, the statement of grant award, the grantee acceptance notice, or a grant adjustment notice; (5) failure to comply with any condition that has been made a part of the statement of grant award by reference or inclusion therein, or through the issuance of a grant adjustment notice; (6) failure to commence project operations within 60
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  [45] days of the project start date; or (7) failure to maintain proper records accounting for receipt of proceeds or property from criminal seizures and forfeitures and other program income;
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (8)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      failure to submit audit reports, including management letters, responses to audit findings or management letters;
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (9)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          failure to provide timely and adequate responses to audit or monitoring report findings; or
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            (10)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              failure to provide accurate information in a grant application, in grantee records, or in reports to CJD.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                (c) CJD may withhold funds from all projects operated by a grantee for reasons that include, but are not limited to: (1) failure to respond to any deficiency listed in this section; (2) failure to return to CJD within the required time unused grant funds remaining in the expired grant; or (3) refusal or an unwillingness to return to CJD any grant funds improperly accounted for or expended for ineligible purposes under a grant that has expired. (d) CJD will not give advance notice that a grantee may be placed on financial hold. It is the responsibility of the grantee to submit all reports and other required information in a timely fashion and to comply with CJD grant guidelines.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  [CJD will notify grantee of all deficient conditions constituting grounds for withholding funds and may give advance notice that CJD may withhold funds unless he grantee corrects deficient conditions by a specified date.] (e) CJD notifies grantees when a grant is placed on financial hold.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Grantees may, within 10 days of receiving notification, request in writing a reconsideration of the determination to withhold funds. The grantee should direct this request to the executive director of CJD, together with any documentation in support of the reconsideration. The executive director will review the determination to withhold funds based on the documentation submitted. CJD will send the final determination to the grantee in writing. (f) CJD will release funds when the grantee has provided satisfactory evidence of the correction of the deficient conditions, unless CJD has terminated the grant as described in sec.3.6080.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      [below.] sec.3.6080. Grant Termination. (a) The grantee shall notify CJD, in writing, of the cancellation of any approved project immediately upon the decision
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        [determination] to cancel the project. (b) CJD may terminate a grant for failure to comply with applicable federal or state laws, rules, regulations, policies, or guidelines; terms, conditions, standards, or stipulations of grant agreements; or terms, conditions, standards, or stipulations of any other grant awarded to the grantee. (c) CJD may terminate grants based on findings that deficient conditions make it unlikely that the grant's objectives will be accomplished; deficient conditions cannot be corrected within a period of time judged acceptable by CJD; the grantee provided inaccurate information in a grant application, in grantee records, or in reports to CJD;
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          or a grantee has acted in bad faith. (d) CJD will notify grantees of conditions and findings constituting grounds for termination. When a grant is terminated all unexpended or unobligated funds awarded to a grantee will revert to CJD. In addition, CJD may judge a grantee ineligible for any future award if CJD has terminated a grant for cause. (e) In some cases, CJD may require the transfer of the grant project by moving the administration of the project to a different agency. (f) A grantee may appeal the termination of a grant by writing to the executive director of CJD within ten days from the date of the suspension or termination notification. The grantee may submit written documentation in support of the appeal. The executive director of CJD
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            will consider any documentation submitted by a grantee in support of an appeal. The decision of the executive director concerning an appeal of a termination will be final unless overturned by a court of competent jurisdiction. sec.3.6090.Payment of Outstanding Liabilities. Grantees must properly obligate and expend all outstanding liabilities no later than 90 days after the end of the grant period. [In addition] CJD will not
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              [cannot] make any reimbursements to grantees unless the final Request for Funds is postmarked by the 90th day after the end of the grant period. If the 90th day falls on a weekend or federal holiday then CJD will honor receipt or a postmark on the next business day. If this deadline is near when submitting a Request for Funds, then CJD advises grantees to send the request via certified, registered or overnight mail and retain the receipt.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                [after this same 90 days after the grant period.] All payments made after the completion of the grant period must relate to obligations encumbered prior to the end of the grant period. sec.3.6095. Violations of Laws. The grantee and its personnel
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  must communicate in writing, immediately upon discovery, to CJD and, if applicable, to the local prosecutor's office, any knowledge, suspicion, or evidence of any legal violations encountered by the grantee or during monitoring visits, including misappropriation of funds, fraud, theft, embezzlement, forgery, or any serious irregularities or noncompliance with the requirements outlined in this chapter. 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 July 23, 1998. TRD-9811688 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 1 TAC sec.sec.3.6100, 3.6105, 3.6110, 3.6115, 3.6120 The new and amendments are proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.6100.Conflict of Interest. Failure to comply with the rules under this section will result in termination of the grant award and may affect future funding decisions.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    No personnel, board member, [volunteer,] agency employee, or other person affiliated with the grant project may participate in any proceeding or action where grant funds personally benefit , directly or indirectly,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      the individual or any of his relatives. [In addition, grant] Grant
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        personnel or officials should avoid any action that might result in or create the appearance of using their official positions for private gain; giving preferential treatment to any person; losing complete independence or impartiality; making an official decision outside of official channels; or affecting adversely the confidence of the public in the integrity of the program or the Criminal Justice Division. Failure to comply with this policy may result in termination of the grant. sec.3.6105. Evaluating Project Effectiveness. CJD grantees must regularly evaluate the effectiveness of their projects. This includes reassessment of individual project activities and services to determine if they remain relevant and effective. Grantees must be able to show that their activities are well thought out and provide real services that directly impact an identified problem statement and bring the project closer to its goals. CJD will assess this requirement through required progress reports, on-site visits, and desk reviews. Information relating to project evaluations must be maintained in the project's files and must be available for review by CJD staff or their representatives. sec.3.6110. Progress Reports. (a) Each grantee must submit progress reports in accordance with the instructions provided by CJD and as outlined for each specific program area. To remain eligible for funding, the grantee must be able to show not only the number of services provided, but the impact and quality of those services. (b) The grantee must submit reports only for those activities supported by CJD grant funds, grantee match, and program income. (c) CJD may prescribe forms for such reports, which the grantee must use. (d) The project director must sign all progress reports. (e) CJD will automatically place projects on financial hold for failure to submit complete and correct progress reports by the specified deadline. CJD will not send reminder notices or make reminder telephone calls prior to placing funds on hold. A history of delinquent reports may affect future funding decisions. (f) CJD will not make a grant award for continuation projects unless all progress reports due by the award date are complete, correct, and on file at CJD. sec.3.6115. Oversight of Contracts. A grantee that uses any portion of CJD funds or matching funds to contract with a third party must maintain records in the grantee project file showing the specific steps taken to ensure that the terms of the contract are met and that the services provided are evaluated by the grantee regularly. sec.3.6120. Accuracy of Grant Records. Providing false information, knowingly or unknowingly, on a grant application, in grantee records, or on reports to the Criminal Justice Division may cause an application to be denied or a grant to be terminated and the grant funds deobligated. In some circumstances, such action may also be considered tampering with government records, a criminal offense. 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 July 23, 1998. TRD-9811704 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 Division 6. Program Monitoring and Audits 1 TAC sec.sec.3.7000, 3.7010, 3.7015, 3.7020 The new rules are proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.7000. Monitoring. (a)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          In accordance with all applicable state and federal statutes, rules, regulations, and guidelines, CJD monitors grants throughout their existence. Grantees must make all records available to CJD staff or CJD representatives unless the information is sealed by law. CJD will hold all sensitive and confidential information in confidence.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            (b)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              CJD monitors both financial and program aspects of a grant project to evaluate progress and determine compliance. This monitoring includes both on-site and desk reviews and may involve any information that CJD deems relevant to the project. The purposes of this monitoring program are to ensure that the grantee is meeting performance goals and that grant funds are expended in compliance with relevant laws, rules, contracts, and grant agreements. On- site monitoring includes, but is not limited to the review of the:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                (1)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  adequacy of the accounting systems, files, equipment and property management, and administration;
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (2)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      relationships of actual expenditures and match requirements compared to approved budgets;
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (3)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          accuracy of financial information, reasonableness of cost allocation plans, and expenditure documentation;
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            (4)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              timeliness of submission of financial expenditure and progress reports;
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                (5)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  need for, reasonableness of, and authorization for costs;
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (6)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      charges to cost pools used in calculating indirect cost rates;
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (7)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          seizures, forfeitures, and program income;
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            (8)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              confidential/imprest funds;
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                (9)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  confidential informant files;
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (10)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      adherence to federal, state, and CJD guidelines and program requirements;
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (11)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          accuracy of statistics on project activities and goal achievement indicators, and
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            (12)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              documentation of and progress toward achieving the project's output and outcome goals.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                (c)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Grantees must maintain current files. CJD may make unannounced visits at any time.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (d)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      CJD reserves the right to conduct its own audit, or contract to do so, of any grant.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (e)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Grantees must give access to project records to all CJD personnel or their agents and properly designated monitors or auditors.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            (f)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              A grantee must, within 30 working days of the date of an audit monitoring report, submit documentation to responding to findings and questioned costs contained in an audit or monitoring report. Any documentation may be submitted to CJD in person at 1100 San Jacinto, Second Floor, Austin, Texas 78701 or by mail to Program Compliance, Criminal Justice Division, Post Office Box 12428, Austin, Texas 78711. CJD will review the documentation for legal, financial, and program acceptability under state, federal and CJD rules.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                (g)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  The grantee may appeal a decision made after submitting responses to CJD findings by writing to the executive director of CJD. A review board will make recommendations to the CJD executive director for approval, disapproval, or approval with modifications of audit or monitoring exceptions. CJD will send the written determination by the executive director to the grantee within 30 calendar days of the decision. Grantees must, within 30 calendar days, refund all funds due after a final determination by the CJD executive director. Failure to comply with this provision will subject participants to the provisions of this Plan relating to the conditions for withholding funds from grantees.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    [(a) In accordance with all applicable state and federal statutes, rules, regulations, and guidelines, CJD monitors grants throughout their existence.] [(b) CJD reviews progress reports and quarterly financial expenditure reports and conducts on site monitoring visits to ensure compliance with grant requirements and to assist grantee with the day to day operation of their projects. On site monitoring includes, but is not limited to, the review and verification of the:] [(1) adequacy of the accounting system, project files, and administration;] [(2) relationships of expenditures to the budget amounts and of actual program operations to the approved grant; [(3) accuracy of financial information, statistics on project activities; and goal achievement indicators;] [(4) timeliness of submission of financial expenditure and progress reports;] [(5) grantee equipment inventory; and [(6) adherence to CJD guidelines and program requirements.] [(c) Grantees are required to maintain current files. CJD may make unannounced monitoring or audit visits at any time.] [(d) CJD reserves the right to conduct its own monitoring visit, or contract to do so, of any grant funded.] sec.3.7010. Grantee Appeal and CJD Review Board. (a)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      A grantee must, within 30 working days of an audit or monitoring report, submit documentation to respond to findings and questioned costs contained in an audit, management letter, or monitoring report. Any documentation may be submitted to CJD in person at 1100 San Jacinto, Second Floor, Austin, Texas 78701, or by mail to Program Compliance, Criminal Justice Division, P. O. Box 12428, Austin, Texas 78711. CJD will review the documentation for legal, financial, and program acceptability under state, federal, and CJD rule.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (b)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          The grantee may appeal a decision made after submitting responses to CJD findings by writing to the executive director of CJD. A review board will make recommendations to the CJD director for approval, disapproval, or approval with modifications of audit or monitoring exceptions. CJD will send the written determination by the executive director to the grantee within 30 calendar days of the decision. Grantees must, within 30 calendar days, refund all funds due after a final determination by the CJD executive director. Failure to comply with this provision will subject participants to the provisions of Chapter sec.3.6075 relating to conditions for withholding funds from grantees.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            [(a) A grantee may, within 30 working days, give notice to CJD of intent to submit documentation to respond to exceptions contained in an audit or monitoring report. A three member review board consisting of CJD personnel will review the documentation for legal, financial, and program acceptability under state and federal rules, regulations, and guidelines. [(b) The review board will make recommendations to the CJD executive director for approval, disapproval, or approval with modifications of audit or monitoring exceptions. CJD will send the written determination by the executive director to the grantee within 30 calendar days.] [(c) Grantee must, within 30 calendar days, refund all funds due after a final determination by the review board approved by the CJD executive director. Failure to comply with this provision will subject participants to the provisions of sec.3.6075 relating to conditions for withholding funds from grantee.] sec.3.7015. Independent Annual Audit. (a)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              CJD requires audits of grants, including subgrants passed through from CJD grantees, based on federal audit requirements. To determine the audit requirement that is relevant to the grantee agency, choose the applicable requirement from the options listed .
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                (b)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Grantee agencies expending a total of $300,000 or more in federal funds, regardless of the source, must submit an annual single audit in accordance with the Single Audit Act Amendments of 1996 and Office of Management and Budget (OMB) Circular A-133.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (c)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Grantee agencies expending a total of $300,000 or more in state funds, regardless of the source, must submit an annual single audit in accordance with the Uniform Grant Management Standards (UGMS).
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (d)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Grantee agencies expending less than a total of $300,000 in federal funds, regardless of the source, are not required to submit a single audit. CJD may require, however, such a grantee to undergo a limited scope audit as defined in OMB Circular A-133 and will inform the grantee of such a requirement.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            (e)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Grantee agencies expending less than a total of $300,000 but $50,000 or more in state funds, regardless of the source, must submit a program- specific audit.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                (f)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Grantee agencies expending less than a total of $50,000 in state funds, regardless of the source, must submit financial statements audited in accordance with Generally Accepted Auditing Standards (GAAS).
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    [(a) CJD requires an audit of grants based on federal audit requirements. Each city, county, and council of governments awarded grants must have an independent annual financial audit of grants that expired during the preceding calendar year conducted by a certified public accountant in accordance with the requirements outlined below. The grantee must file a copy of each independent certified public accountant audit and management letter with CJD.] [(b) OMB Circular A-128 sets forth requirements for state and local governments and OMB Circular A-133 sets forth audit requirements for private nonprofit corporations and institutions of higher education. They are as follows:] [(1) OMB Circular No. A-128 requires that state and local governments that receive $100,000 or more in state and federal funds in any fiscal year must have a single audit for that year. State and local governments receiving at least $25,000, but less that $100,000, have the option of performing a single audit or separate program audits required by the applicable statutes and regulations.] [(2) OMB Circular No. A-133 requires that institutions of higher education, hospitals, and other private nonprofit institutions that receive $100,000 or more a year in state or federal funds shall have a single audit made. Institutions of higher education, hospitals, and all private nonprofit corporations that receive awards between $25,000 and $100,000 a year have the option of having an audit made of each award. The audits must be independent and in accordance with Government Auditing Standards covering financial audits. CJD and the grantee may agree, however, on a coordinated audit approach that tailors the scope of the audit to individual circumstances.] [(c) Grantees receiving less than $25,000 in CJD funds in a fiscal year are exempt from a single audit. VOCA and Crime Stoppers projects, however, must submit an audit or financial statement annually to CJD.] sec.3.7020. Audit Standards. (a)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Grantee agencies must submit to CJD copies of all audit reports. These include both audits as required in the Independent Annual Audit and all other audits that the grantee agency undergoes, regardless of the purpose.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (b)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          CJD grantees must ensure that required audits are completed and submitted to CJD on or before whichever of the following applicable dates is earlier:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            (1)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              30 days after the issuance of the auditor's report(s);
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                (2)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  within 13 months after the end of the audited fiscal year for those grantees whose fiscal year begins before July 1, 1998; or
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (3)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      within nine months after the end of the audited fiscal year for those grantees whose fiscal year begins on or after July 1, 1998.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (c)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Awarded grants will bear their fair and reasonable share of audit costs required by CJD in accordance with applicable federal and state cost principles governing allowability and allocability.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            (d)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              All CJD grantees, regardless of level of funding, are subject to periodic on-site reviews and audits by CJD. These reviews are designed to compliment, not duplicate, any single audit performed.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                [(a) Grantees are responsible for providing for an independent audit of their activities. These audits must be completed not later than 12 months following the end of the grant period. These audits shall be made annually unless a constitutional or statutory provision allows less frequent audits. Examinations must be in accordance with the financial and compliance audit provisions of the U.S. General Accounting Office Government Auditing Standards.] [(b) The grantee must submit a copy of the independent audit report to CJD within 30 days following completion of the audit. The submission must include a copy of any management letters and the grantee's response to the audit.] [(c) The Criminal Justice Division reserves the right to conduct its own audit, or contract to do so, of any grant funded. 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 July 23, 1998. TRD-9811689 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 1 TAC sec.3.7005 (Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Office of the Governor or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The repeal is proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by these new rules. sec.3.7005. Retention of Records. 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 July 23, 1998. TRD-9811674 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 Division 7. Governing Directives 1 TAC sec.3.8000 The amendments are proposed under Texas Government Code, Title 7, sec.772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division the authority to promulgate rules consistent with the Code. No other statutes, articles or codes are affected by this amendment. sec.3.8000. Adoptions by Reference. The Criminal Justice Division adopts by reference the statutes, documents, and forms [of paragraphs (1)-(3) of this section] that relate to the administration of CJD grants. Grantees must comply with all applicable state and federal statutes, rules, regulations, and guidelines. CJD advises grantees and applicants to carefully read this section because the specific requirements may vary by program and funding source.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  (1)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Information regarding the documents referred to in this section may be obtained by writing to CJD at P. O. Box 12428, Austin, Texas 78711, or by calling (512) 463-1942:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      (A)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Uniform Grant Management Standards developed under the directive of the Uniform Grant Management Act of 1981, Chapter 783, Government Code, dated January 1998; or
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          (B)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Office of Justice Programs, OJP Financial Guide, dated April 1996.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              (2)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Information regarding the following circulars may be obtained by writing the office of Federal Financial Management, Office of Management and Budget, Room 6025, New Executive Office Building, Washington, D. C. 20503, or by calling (202) 395-3993.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  (A)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Administrative Requirements:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      (i)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Common Rule for Circular A-102: Grants and Cooperative Agreements with State and Local Government, revised October 7, 1994.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          (ii)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Circular No. A-110: Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Private Nonprofit Organizations, revised November 19, 1993 (codified at 29 CFR, part 70).
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              (iii)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Education Department General Administrative Regulations (EDGAR) revised 1996.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  (B)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Cost Principles:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      (i)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Circular No. A-21: Cost Principles for Educational Institutions, revised July 26, 1993 (codified at 28 CFR, part 66, by reference).
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          (ii)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Circular No. A-87: Cost Principles for State, Local, and Indian Tribal Governments, revised May 17, 1995 (codified at 28 CFR, part 66, by reference).
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              (iii)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Circular No. A-122: Cost Principles for private Nonprofit Organizations, revised September 29, 1995 (codified at 28 CFR, part 66 by reference).
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  (C)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Audit Requirements: Circular No. A-133: Audits of States, Local Governments, and Non-Profit Organizations, revised June 24, 1997.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      (3)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        U.S. General Accounting Office, Standards for Audit for Governmental Organizations, Programs, Activities, and Functions, revised 1994.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          (4)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Texas Review and Comment System (1 TAC chapter 5.191 et seq.) developed in response to Presidential Executive order 12372.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              (5)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Criminal Justice Division forms, including the statement of grant award; grantee acceptance notice; grantee's request for funds; grant adjustment notice; grantee's progress report; financial expenditure report; and property inventory report.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  [(1) Uniform Grant and Contract Management Standards developed under the directive of the Uniform Grant and Contract Management Act of 1981, chapter 783, Texas Government Code. The Governor's Office of Budget and Planning develops and publishes the Uniform Grant and Contract Management Standards (UGCMS) to provide uniform grant application and administrative procedures. The UGCMS have adopted the provisions of five federal circulars promulgated by the Office of Management and Budget; those are:] [(A) Circular No. A-87: Cost Principles for State and Local Governments;] [(B) Circular No. A-110: Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Private Nonprofit Corporations: Uniform Administrative Requirements. Attachment A (cash depositories), Attachment F (Standards for Financial Management Systems), and Attachment O (Procurement Standards);] [(C) Common Rule for Circular A-102: Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments, sec.20 (Standards for Financial Management Systems) and 36 (Procurement);] [(D) Circular No. A-128: Audits of State and Local Governments; and] [(E) Circular No. A-133: Audits of Institutions of Higher Education and Other Private nonprofit Corporations.] [(2) Office of Justice Programs, OJP Financial Guide, including Circular No. A- 21: Cost Principles for Educational Institutions and Circular No. A-122: Cost Principles for Private Nonprofit Corporations.] [(3) U.S. General Accounting Office Government Auditing Standards.] 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 July 23, 1998. TRD-9811716 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1815 CHAPTER 5.Budget and Planning Office SUBCHAPTER B.State and Local Review of Federal and State Assistance Applications Division 1. Introduction and General Provisions of Texas Review and Comment System 1 TAC sec.5.195 The Governor's Office proposes amendments to sec.5.195, concerning the Texas Review and Comment System. The proposed changes add 30 new programs for review, delete 92 programs no longer in existence, drop 23 no longer of widespread interest and conform program numbers to current listings in the Catalog of Federal Domestic Assistance. The programs proposed to be added and deleted are based on responses to mailout questionnaires to all 24 regional councils of governments and all state agencies with TRACS coordinators. T.C. Adams, state single point of contact, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state and local governments as a result of enforcing or administering the section. Mr. Adams also has determined that for each year of the first five years the section is in effect the public benefits anticipated as a result of enforcing or administering the section will be more effective use of public financial resources and increased information sharing and coordination among affected governmental entities. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. Comments on the proposal may be submitted to T. C. Adams, State Single Point of Contact, Governor's Office of Budget and Planning, P.O. Box 12428, Austin, Texas 78711, area code (512) 463-1771, (e-mail tadams@governor.state.tx.us) for a period of 30 days following publication. The amendments are proposed under the Government Code, Title 7, Sections 772.004 and 772.005, and the Local Government Code, Chapter 391, which authorizes the Governor's Office to provide for review of state and local applications for grant and loan assistance and to establish policies and guidelines for review and comment. Chapter 391 of the Local Government Code requires applicants for state or federal assistance to submit their applications for review to the appropriate regional planning commissions and directs the governor to issue guidelines for carrying out such reviews. sec.5.195. Program Coverage. (a)-(b) (No change.) (c) Federal programs included for review under TRACS pursuant to these laws, plus selected other activities, including all direct federal and state development not specifically excluded by law, are shown, respectively, in Tables I and II. Copies of these tables may be obtained from the State Single Point of Contact, Governor's Budget and Planning Office, Post Office Box 12428, Austin, Texas 78711. This information is also available on the Governor's Office Internet site at www.governor.state.tx.us.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    As required by state law (Government Code, sec. 772.005), all state agencies must notify the governor's office when applying for federal funds. Figure: 1 TAC 5.195(c) 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 July 22, 1998. TRD-9811595 Pete Wassdorf Deputy General Counsel Office of the Governor Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-1788 PART IV. Office of the Secretary of State CHAPTER 95. Uniform Commercial Code The Office of the Secretary of State proposes the repeal of sec.sec.95.1-95.5 General Information and Correspondence, sec.sec.95.31-95.36 Filing, sec.sec.95.41 Information Requests, sec.95.51 Standard Forms, sec.sec.95.61- 95.62 Rejection, and proposes new sec.sec.95.100-95.117 General Provisions, sec.sec.95.200-95.208 Information Required for Indexing, sec.95.300-95.304 Acceptance and Refusal of Documents, sec.95.400-95.414 UCC Information Management System, sec.sec.95.440-95.450 EDI Documents, sec.sec.95.500-95.520 Filing and Data Entry Procedures, sec.sec.95.601-95.605 Search Requests and Reports, sec.sec.95.700-95.706 Other Notices of Liens, and sec.sec.95.800-95.803 Rulemaking Procedure. The purpose of the repeals and adoption of new Uniform Commercial Code rules is to conform to national model administrative rules promulgated by the International Association of Corporation Administrators. Wallis N. Boggus, Associate Deputy Assistant Secretary, has determined that for the first five-year period the proposed sections will be in effect there will be no fiscal implications to state or local government as a result of enforcing or administering the sections. Mr. Boggus also has determined that for each year of the first five years the sections are in effect, the public benefit anticipated will be clarification in matters related to filing of Uniform Commercial Code documents with the Secretary of State and the submission of information requests. Comments on the proposal may be submitted to Wallis N. Boggus, Associate Deputy Assistant Secretary, Uniform Commercial Code Section, PO Box 13193, Austin, Texas 78711-3193. SUBCHAPTER A. General Information and Correspondence 1 TAC sec.sec.95.1-95.5 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Register, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The repeals are proposed under sec.sec.9.401-9.412 Texas Business and Commerce Code, sec.sec.35.01-35.09 Texas Business and Commerce Code, sec.sec.14.001- 14.007 Texas Property Code, sec.sec.128, Texas Agriculture Code, sec.sec.188, Texas Agriculture Code, sec.sec.42.21 Texas Code of Criminal Procedure, and sec.sec.51.901-51.905 Texas Government Code which provides the Secretary of State with the authority to adopt rules necessary to administer subchapter D of Chapter 9, Texas Business and Commerce Code, subchapter A of Chapter 35, Miscellaneous, chapter 14, Uniform Federal Lien Registration Act, subtitle H of Title 5, Texas Agriculture Code, subtitle E of Title 6, Texas Agriculture Code, and subchapter J of Chapter 51, Texas Government Code. No other states, articles or codes are affected by this proposal. sec.95.1. All Communications to be Addressed to the Secretary of State of Texas. ("Agency"). sec.95.2. Nature of Correspondence. sec.95.3. Identification of Rejected Item and Filed Financing Statement. sec.95.4. Receipt of Transmittals and Papers. sec.95.5. Filing Date and Time. 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 July 27, 1998. TRD-9811828 Clark Kent Ervin Assistant Secretary of State Office of the Secretary of State Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-5701 SUBCHAPTER B. Filing 1 TAC sec.sec.95.31-95.36 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Register, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The repeals are proposed under sec.sec.9.401-9.412 Texas Business and Commerce Code, sec.sec.35.01-35.09 Texas Business and Commerce Code, sec.sec.14.001- 14.007 Texas Property Code, sec.sec.128, Texas Agriculture Code, sec.sec.188, Texas Agriculture Code, sec.sec.42.21 Texas Code of Criminal Procedure, and sec.sec.51.901-51.905 Texas Government Code which provides the Secretary of State with the authority to adopt rules necessary to administer subchapter D of Chapter 9, Texas Business and Commerce Code, subchapter A of Chapter 35, Miscellaneous, chapter 14, Uniform Federal Lien Registration Act, subtitle H of Title 5, Texas Agriculture Code, subtitle E of Title 6, Texas Agriculture Code, and subchapter J of Chapter 51, Texas Government Code. No other states, articles or codes are affected by this proposal. sec.95.31. Financing Statement and Related Document. sec.95.32. Master Assignment and Amendment. sec.95.33. Utility Security Instrument. sec.95.34. Utility Security Instrument Supplementary or Amendatory, and Statement of Name Change, Merger, or Consolidation. sec.95.35. Federal Lien. sec.95.36. Electronic Data Interchange. 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 July 27, 1998. TRD-9811829 Clark Kent Ervin Assistant Secretary of State Office of the Secretary of State Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-5701 SUBCHAPTER C. Information Requests 1 TAC sec.95.41 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Register, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The repeal is proposed under sec.sec.9.401-9.412 Texas Business and Commerce Code, sec.sec.35.01-35.09 Texas Business and Commerce Code, sec.sec.14.001- 14.007 Texas Property Code, sec.sec.128, Texas Agriculture Code, sec.sec.188, Texas Agriculture Code, sec.sec.42.21 Texas Code of Criminal Procedure, and sec.sec.51.901-51.905 Texas Government Code which provides the Secretary of State with the authority to adopt rules necessary to administer subchapter D of Chapter 9, Texas Business and Commerce Code, subchapter A of Chapter 35, Miscellaneous, chapter 14, Uniform Federal Lien Registration Act, subtitle H of Title 5, Texas Agriculture Code, subtitle E of Title 6, Texas Agriculture Code, and subchapter J of Chapter 51, Texas Government Code. No other states, articles or codes are affected by this proposal. sec.95.41. Certificate and Copies. 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 July 27, 1998. TRD-9811830 Clark Kent Ervin Assistant Secretary of State Office of the Secretary of State Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-5701 SUBCHAPTER D. Standard Forms 1 TAC sec.95.51 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Register, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The repeal is proposed under sec.sec.9.401-9.412 Texas Business and Commerce Code, sec.sec.35.01-35.09 Texas Business and Commerce Code, sec.sec.14.001- 14.007 Texas Property Code, sec.sec.128, Texas Agriculture Code, sec.sec.188, Texas Agriculture Code, sec.sec.42.21 Texas Code of Criminal Procedure, and sec.sec.51.901-51.905 Texas Government Code which provides the Secretary of State with the authority to adopt rules necessary to administer subchapter D of Chapter 9, Texas Business and Commerce Code, subchapter A of Chapter 35, Miscellaneous, chapter 14, Uniform Federal Lien Registration Act, subtitle H of Title 5, Texas Agriculture Code, subtitle E of Title 6, Texas Agriculture Code, and subchapter J of Chapter 51, Texas Government Code. No other states, articles or codes are affected by this proposal. sec.95.51. Prescribed Form. 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 July 27, 1998. TRD-9811831 Clark Kent Ervin Assistant Secretary of State Office of the Secretary of State Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-5701 SUBCHAPTER E. Rejection 1 TAC sec.95.61, sec.95.62 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Register, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The repeals are proposed under sec.sec.9.401-9.412 Texas Business and Commerce Code, sec.sec.35.01-35.09 Texas Business and Commerce Code, sec.sec.14.001- 14.007 Texas Property Code, sec.sec.128, Texas Agriculture Code, sec.sec.188, Texas Agriculture Code, sec.sec.42.21 Texas Code of Criminal Procedure, and sec.sec.51.901-51.905 Texas Government Code which provides the Secretary of State with the authority to adopt rules necessary to administer subchapter D of Chapter 9, Texas Business and Commerce Code, subchapter A of Chapter 35, Miscellaneous, chapter 14, Uniform Federal Lien Registration Act, subtitle H of Title 5, Texas Agriculture Code, subtitle E of Title 6, Texas Agriculture Code, and subchapter J of Chapter 51, Texas Government Code. No other states, articles or codes are affected by this proposal. sec.95.61. Documents to be Returned. sec.95.62. Information Requests to be Returned. 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 July 27, 1998. TRD-9811832 Clark Kent Ervin Assistant Secretary of State Office of the Secretary of State Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-5701 SUBCHAPTER A. General Provisions 1 TAC sec.sec.95.100-95.117 The new sections are proposed under sec.sec.9.401-9.412 Texas Business and Commerce Code, sec.sec.35.01-35.09 Texas Business and Commerce Code, sec.sec.14.001-14.007 Texas Property Code, sec.sec.128, Texas Agriculture Code, sec.sec.188, Texas Agriculture Code, sec.sec.42.21 Texas Code of Criminal Procedure, and sec.sec.51.901-51.905 Texas Government Code which provides the Secretary of State with the authority to adopt rules necessary to administer subchapter D of Chapter 9, Texas Business and Commerce Code, subchapter A of Chapter 35, Miscellaneous, chapter 14, Uniform Federal Lien Registration Act, subtitle H of Title 5, Texas Agriculture Code, subtitle E of Title 6, Texas Agriculture Code, and subchapter J of Chapter 51, Texas Government Code. No other states, articles or codes are affected by this proposal. sec.95.100. Policy Statement. (a) The administration of the UCC has an important impact on the economy and upon the rights of the public, in this state and in the United States. The volume of international, interstate and multistate transactions pursuant to the UCC requires that the administration of the UCC be conducted in a manner that promotes both local and multi-jurisdictional commerce by striving for uniformity in policies and procedures among the various states. (b) The policy of the filing office is that the interpretation and implementation of the filing office's duties and responsibilities shall be expressed in a written set of administrative rules, which the public shall have a voice in creating. Such rules have the following purposes: (1) to simplify and improve the administration of the UCC by promoting uniform UCC filing procedures in this state and in the nation, (2) to simplify the public's ability to discover and understand the UCC filing procedures of the various states by establishing a uniform framework for describing the procedures, (3) to increase public access to information, (4) to increase public participation in the formulation of administrative policy and procedures, and (5) to increase public accountability of the filing officer. sec.95.101. Definitions. Words and terms shall have the meanings provided in this rule, unless the context requires otherwise. Words and terms not defined in this rule which are defined in the UCC shall have the respective meanings accorded such words and terms in the UCC, except as the context otherwise clearly requires. (1) "Filing office" and "filing officer" mean Texas Secretary of State. (2) "Remitter" means a person who tenders a UCC document to the filing officer for filing, whether the person is a filer or an agent of a filer responsible for tendering the document for filing. "Remitter" does not include a person responsible merely for the delivery of the document to the filing office, such as the postal service or a courier service but does include a service provider who acts as a filer's representative in the filing process. (3) "UCC" means the Uniform Commercial Code as adopted in this state and in effect from time to time. (4) "UCC document" means an original financing statement, a statement of amendment of a financing statement, a statement of assignment of interest in collateral, a statement of release of interest in collateral, a continuation statement, or a termination statement. The word "document" in the term "UCC document" shall not be deemed to refer exclusively to paper or paper-based writings, it being understood that UCC documents may be expressed or transmitted electronically or through media other than tangible writings. (Note: this definition is used for the purpose of these rules only. The use of the term "UCC document" in these rules has no relation to the definition of the term "document" in UCC section 9-105(f), as it has been adopted in this state.) (5) "Original financing statement" means a UCC document containing the information required to be in a financing statement pursuant to Subchapter B of this chapter and that, when filed, provides the information to establish the initial record of the existence of a financing statement in the filing officer's UCC information management system. (6) "Financing statement" means an original financing statement and all UCC documents that relate to the original financing statement. (7) "Secured party of record" means a secured party shown on the filing officer's information management system as active with respect to a financing statement. (8) "Identification of the original financing statement" means the unique identifying information (including, at a minimum, a filing number and date of filing) assigned to an original financing statement by the filing officer for the purpose of identifying the financing statement and UCC documents relating to the financing statement in the filing officer's information management system. The filing number is the last two year digits followed by sequential number beginning with 000001 for each calendar year. The filing number bears no relation to the time of filing and is not an indicator of priority. sec.95.102. Singular and Plural Forms. Singular nouns shall include the plural form, and plural nouns shall include the singular form, unless the context requires otherwise. sec.95.103. Place to File. (a) The Office of the Secretary of State is the office for filing UCC documents relating to all types of collateral except the following. Financing statements concerning the following classes of goods are to be filed with the county clerk: (1) consumer goods used or bought for use primarily for personal, family, or household purposes subject to section 9-109, Texas Business and Commerce Code; (2) fixtures when they become so related to particular real estate that an interest in them arises under the real estate law of the state in which the real estate is situated subject to section 9-313, Texas Business and Commerce Code; (3) timber specified in the UCC as, "Timber to be cut." subject to section 9- 203, Texas Business and Commerce Code; or (4) minerals includes an interest in minerals or the like (including oil and gas) before extraction and which attaches thereto as extracted, or which attaches to an account resulting from the sale thereof at the wellhead or minehead subject to subsection 4 of section 9-103, Texas Business and Commerce Code. (b) The proper place to file in order to perfect a security interest in consumer goods is with the county clerk of the debtor's residence. If the debtor is not a resident of this state, then the filing should be made in the county where the goods are kept. sec.95.104. Filing Office Identification. (a) Street address. The street addresses of the filing office are as follows. (1) General street address: Secretary of State, Uniform Commercial Code, 1019 Brazos, Suite 505, Austin, TX 78701. (2) Courier street address: Secretary of State, Uniform Commercial Code, 1019 Brazos, Room B-13, Austin, TX 78701. (b) Mailing address. The mailing address of the filing office is Secretary of State, Uniform Commercial Code, PO Box 13193, Austin, TX 78711-3193. (c) Telephone numbers. The telephone numbers of the filing office are as follows. (1) General office number: 512-475-2700. (2) Lien search requests: 512-475-2705. (3) Financing statement filing information: 512-475-2703. (4) Financing statement change filing information: 512-475-2704. (d) Telefacsimile (fax) numbers. The filing office maintains the following numbers for the purpose of telefacsimile (fax) transmissions. (1) 512-463-1423 for transmission of filings. (2) 512-475-2812 for transmission of search requests. (3) 512-475-2848 for communications other than filings and search requests. (e) On-line information service. The filing officer offers on-line information services at 512-475-2740. (f) Telephone device for the deaf (TDD). The filing office offers TDD service at 800-735-2989. sec.95.105. Office Hours. (a) In person. The filing office is open to the public between the hours of 8:00 AM and 5:00 PM CST, Monday through Friday, except for state holidays. (b) Telephone. The filing office receives telephone calls between the hours of 8:00 AM and 5:00 PM CST, Monday through Friday, except for state holidays. (c) Telefacsimile (fax) transmissions. The filing office receives transmissions by telefacsimile 24 hours per day, 365 days per year, except for scheduled maintenance and unscheduled interruptions of service. (d) Electronic filing transmissions. The filing office is open for electronic filing transmissions between the hours of 7:00 AM and 7:00 PM CST, Monday through Friday, except for state holidays. sec.95.106. UCC Document Delivery. UCC documents may be tendered for filing at the filing office as follows. (1) Personal delivery, at the street address stated in sec.95.104(a)(1) of this title (relating to Filing Office Identification). The file time for a UCC document delivered by this method is when delivery of the UCC document is accepted by the filing office (even though the UCC document may not yet have been accepted for filing and subsequently may be rejected). (2) Courier delivery, at the street address stated in sec.95.104(a)(2) of this title. The file time for a UCC document delivered by this method is the 8:00 AM CST on a day the filing office is open to the public (even though the UCC document may not yet have been accepted for filing and may be subsequently rejected). (3) Postal service delivery, to the street address stated in sec.95.104(a)(1)of this title or the mailing address stated in sec.95.104(b) of this title. The file time for a UCC document delivered by this method is the 8:00 AM CST on a day the filing office is open to the public (even though the UCC document may not yet have been accepted for filing and may be subsequently rejected). (4) Telefacsimile (fax) delivery, to the telephone number stated in sec.95.104(d)(1)-(3) of this title. The file time for a UCC document delivered by this method is, notwithstanding the time of delivery, at the earlier of the time the UCC document is first examined by a filing officer for processing even though the telefacsimile device may indicate that the UCC document was received at an earlier time. Filing fees must be paid by credit card. (5) Electronic data interchange (EDI). UCC documents may be transmitted electronically using the ANSI X12 154 transmission standard as described in sec.sec.95.440 et seq of this title (relating to EDI Documents). The file time for a UCC document delivered by this method is the time that the filing office's EDI system analyzes the relevant transmission and determines that all the required elements of the transmission have been received in a required format and are machine-readable. sec.95.107. Search Request Delivery. UCC search requests may be delivered to the filing office as follows. Requirements concerning search requests are set forth in sec.95.601 of this title (relating to Search Requests). (1) Personal delivery, at the street address stated in sec.95.104(a)(1) of this title (relating to Filing Office Identification). (2) Courier delivery, at the street address stated in sec.95.104(a)(2) of this title. (3) Postal service delivery, to the street address stated in sec.95.104(a)(1) of this title or the mailing address stated in sec.95.104(b) of this title. (4) Telephone requests, to the telephone number stated in sec.95.104(c)(2) of this title. (5) Telefacsimile (fax) delivery, to the telephone numbers stated in sec.95.104(d)(1)-(2) to this title. (6) Electronic data interchange (EDI). UCC search requests may be transmitted electronically as described in sec.95.440 of this title (relating to Definitions). (7) On-line information service. UCC search requests may be entered on-line as described in sec.sec.95.601-95.605 of this title (relating to Search Requests and Reports). To obtain on-line access contact filing office. (8) Original financing statement. UCC search requests upon a debtor named on an original financing statement may be made by an appropriate indication on the face of the original financing statement form if the form is entitled to be filed with the standard form fee and the relevant search fee is also tendered with the original financing statement. sec.95.108. Requirements to Qualify for Standard Form Fee. Forms for UCC documents that conform to the requirements of this rule shall be accompanied by the standard form fee. Other UCC documents shall be accompanied by the nonstandard form fee. (1) PEB/IACA forms approved. A form approved for the relevant UCC document by the Permanent Editorial Board of the National Conference of Commissioners on Uniform State Laws and the American Law Institute or by the International Association of Corporation Administrators qualifies for filing with the standard form fee. (2) Secretary of State-approved. A form for the relevant UCC document approved by the Office of the Secretary of State qualifies for filing with the standard form fee. Copies of all such forms then approved shall be distributed with these rules when they are distributed by the filing office and the filing office shall cause copies of such forms to be made available to prospective filers and remitters upon request. (A) Specifications pertaining to the prescribed forms or a list of approved printers and form suppliers may be obtained by writing to the Office of the Secretary of State, Uniform Commercial Code Section, PO Box 13193, Austin, TX 78711-3193. (B) Prior permission to print prescribed forms must be obtained in writing from the Agency. A printer must submit five complete sets of each type of form to the Agency for examination. Within 30 days of receipt of such forms, the Agency will transmit to the printer written notification of the results of the examination. Such notification will grant permission to print forms or express the reasons for refusal to grant permission. (C) Where a printer produces forms with a name other than that of the approved printer in the bottom right corner, the printer must notify the Agency in writing of such name(s) and include a sample form for each name(s). If these entities sell forms, the printer must inform the Agency that the entity is a supplier and give the supplier's business address and telephone number for inclusion on the Agency supplier list. (D) The Agency will notify approved printers of any revisions which must be made to the prescribed forms. Printers must submit five revised forms of each type to the Agency for examination. Within 30 days of receipt of the revised forms, the Agency will transmit written notification of the results of the examination. The notification will grant permission to print forms or express the reasons for refusal to grant permission. (E) The Agency may suspend permission to print forms at any time for failure to comply with this section or failure to maintain compliance with form specifications. (3) Nonstandard form. When labels or any other medium are affixed to areas other than the return address or collateral description on the face of a standard form or additional pages are attached to the prescribed form or when any other form is used, the form will be subject to the nonstandard form filing fee. (4) Electronic filings. A UCC document transmitted electronically pursuant to the ANSI X12 154 standard and the procedures set forth in sec.sec.95.440 et seq. of this title (relating to EDI Documents) qualifies for filing with the standard form fee. sec.95.109. Standard Form - UCC Search. A form that meets the requirements regarding dimensions and location of information on the search form approved by the Office of the Secretary of State qualifies for the standard UCC search fee. Other UCC search requests shall be accompanied by the nonstandard form UCC search fee. sec.95.110. Forms Suppliers. (a) The current suppliers of UCC forms identified in sec.95.108(1) of this title (relating to Requirements to Qualify for Standard Form Fee) or that meet the requirements of sec.95.108(2) of this title are available upon request from the Secretary of State. The mailing address is stated in sec.95.104(b) if this title (relating to Filing Office Identification) and the telephone number is stated in sec.95.104(c)(2) of this title. (b) Updated lists. The filing office will make updated lists of forms suppliers available to prospective filers and remitters upon request. sec.95.111. Filing Fees. (a) Standard form filing fee. The fee for filing a UCC document delivered in a standard form and for each additional name (excluding electronically transmitted UCC documents) presented for filing with a standard form is pursuant to sec.9.403(e), Texas Business and Commerce Code. (b) Nonstandard form filing fee. The fee for filing a UCC document delivered in a form other than the standard form and for each additional name (excluding electronically transmitted UCC documents) presented for filing with a form other than the standard form is pursuant to sec.9.403(e), Texas Business and Commerce Code. (c) UCC search fee. The fee for a UCC search request delivered in a standard form or a form other than the standard form is pursuant to sec.9.407(b), Texas Business and Commerce Code. (d) UCC search - copies. The fee for UCC search copies (or page equivalent for electronically transmitted search responses) is pursuant to sec.9.407(b), Texas Business and Commerce Code. (e) Self-service pages. The fee for uncertified copies of records is pursuant to sec.552.261, Texas Government Code and sec.71.8, Texas Administrative Code. (f) Special fees for fax filings. (1) Standard form filing fee. The fee for filing a UCC document delivered in a standard form and for each additional name (excluding electronically transmitted UCC documents) presented for filing with a standard form is pursuant to sec.9.403(e), Texas Business and Commerce Code. The fee for expedite handling is pursuant to sec.405.032, Texas Government Code and the fee per acknowledgment page is pursuant to sec.405.031, Texas Government Code. (2) Nonstandard form filing fee. The fee for filing a UCC document delivered in a form other than the standard form and for each additional name (excluding electronically transmitted UCC documents) presented for filing with a form other than the standard form is pursuant to sec.9.403(e), Texas Business and Commerce Code. The fee for expedite handling is pursuant to sec.405.032, Texas Government Code and the fee per acknowledgment page is pursuant to sec.405.031, Texas Government Code. (g) Special fees for fax UCC searches. (1) Standard form filing fee. The fee for a UCC request delivered in a standard form is pursuant to sec.9.407(b), Texas Business and Commerce Code. The fee for the fax service is pursuant to sec.405.032, Texas Government Code and sec.71.8, Texas Administrative Code. (2) Nonstandard form filing fee. The fee for a UCC request delivered in a form other than the standard form is pursuant to sec.9.407(b), Texas Business and Commerce Code. The fee for the fax service is pursuant to sec.405.032, Texas Government Code and sec.71.8, Texas Administrative Code. sec.95.112. Expedited Services. The following information, instructions, and fees are applicable to requests for expedited service. (1) Expedited Filing. Documents presented in person or fax are treated as an expedite filing and subject to an expedite handling fee pursuant to sec.405.032, Texas Government Code and sec.71.8, Texas Administrative Code. (2) Special fees for fax filings - per page copies. (A) The fee for regular service delivered in a turnaround time of five to seven working days for a standard form is pursuant to sec.9.407, Texas Business and Commerce Code. Charges for copies that accompany this regular service are pursuant to sec.9.407, Texas Business and Commerce Code. The fee for regular service delivered in a turnaround time of five to seven working days for a nonstandard form is pursuant to sec.9.407, Texas Business and Commerce Code. Charges for copies that accompany this regular service is pursuant to sec.9.407, Texas Business and Commerce Code. (B) The fee for expedite service delivered in a turnaround time of one working day for a standard form is pursuant to sec.9.407, Texas Business and Commerce Code. Charges for copies that accompany this expedite service is pursuant to sec.9.407, Texas Business and Commerce Code and an expedite handling fee is pursuant to sec.405.032, Texas Government Code. The fee for expedite service delivered in a turnaround time of one working day for a nonstandard form is pursuant to sec.9.407, Texas Business and Commerce Code. Charges for copies that accompany this regular service is pursuant to sec.9.407, Texas Business and Commerce Code and an expedite handling fee pursuant to sec.405.032, Texas Government Code. A completed expedite search request may either be mailed, faxed, or picked up in person. (3) How to request expedited service. (A) Expedited Filing. Documents presented in person and fax are treated as expedite filing and subject to an expedite handling fee described in paragraph (1) of this section. (B) Responding to UCC search request. Documents may be requested by mail, telephone, fax, SDA, and in person. sec.95.113. Methods of Payment. Filing fees and fees for public records services may be paid by the following methods. (1) Cash. The filing officer discourages cash payment unless made in person to the cashier at the filing office. (2) Checks. Checks made payable or endorsed to the filing office, including checks in an amount to be filled in by a filing officer but not to exceed a particular amount, will be accepted for payment if they are cashier's checks or certified checks drawn on a bank acceptable to the filing office or if the drawer is acceptable to the filing office. All checks must be drawn on a U.S. bank. The identity of acceptable banks will be made available to prospective filers and remitters upon request. (3) Electronic funds transfer. The filing office will accept payment via electronic funds transfer under National Automated Clearing House Association ("NACHA") rules from remitters who have entered into appropriate NACHA-approved arrangements for such transfers and who authorize the relevant transfer pursuant to such arrangements and rules. (4) Debit cards. The filing office accepts payment by debit cards issued by approved debit card issuers. A current list of approved debit card issuers is available from the filing office. Remitters shall provide the filing officer with the card number, the expiration date of the card, the name of the approved card issuer, the name of the person or entity to whom the card was issued and the billing address for the card. Payment will not be deemed tendered until the issuer or its agent has confirmed to the filing office that payment will be forthcoming. (5) Credit cards. The filing office accepts payment by the following credit cards issued by approved credit card issuers: MasterCard, Visa, and Discover. A current list of approved credit card issuers is available from the filing office. Remitters shall provide the filing officer with the card number, the expiration date of the card, the name of the approved card issuer, the name of the person or entity to whom the card was issued and the billing address for the card. Payment will not be deemed tendered until the issuer or its agent has confirmed to the filing office that payment will be forthcoming. sec.95.114. Overpayment and Underpayment Policies. (a) Overpayment. The filing officer shall refund the amount of an overpayment exceeding $1.00 to the remitter pursuant to sec.405.034, Texas Government Code. The filing officer shall refund an overpayment of $1.00 or less upon the written request of the remitter. (b) Underpayment. Upon receipt of a document with an insufficient fee, the filing officer shall do the following: The document shall be returned to the remitter as provided in sec.95.304 of this title (relating to Procedure Upon Refusal). A refund of a partial payment may be included with the document or delivered under separate cover. sec.95.115. Public Records Services. Public records services are provided on a non-discriminatory basis to any member of the public on the terms described in these rules. The following methods are available for obtaining copies of UCC documents and copies of data from the UCC information management system. (1) Individually identified documents. Copies of individually identified UCC documents are available in the following forms: Copies provided on paper. (2) Bulk copies of documents. Bulk copies of UCC documents are available in the following forms: Paper, microfilm, TIF files and EDI documents. (3) Data from the information management system. A list of available data elements from the UCC information management system, and the file layout of the data elements, is available from the filing officer upon request. Data from the information management system is available as follows. (A) Full extract. A bulk data extract of information from the UCC information management system is available on a biannually and yearly basis. (B) Update extracts. Updates of information from the UCC information management system are available on a daily basis. (C) Format. Extracts from the UCC information management system are available in the following formats: Magnetic tape (9 track, 6250 bpi) and 8mm tape. (4) Direct on-line services. On-line services make UCC data available on a subscription basis. A description of subscription services is available from the filing officer. sec.95.116. Fees for Public Records Services. Fees for public records services are established as follows. (1) Paper copies of individual documents. (A) Regular delivery method. The fee for UCC search copies is pursuant to sec.9.407(b), Texas Business and Commerce Code (or page equivalent for electronically transmitted search responses). (B) Fax delivery. The fee for a fax service is pursuant to sec.405.032, Texas Government Code and sec.71.8, Texas Administrative Code. (2) Bulk copies of documents. (A) Paper. The fee for bulk copies of UCC documents is pursuant to sec.9.407(b), Texas Business and Commerce Code (or page equivalent for electronically transmitted search responses), sec.405.031(c)-(d), Texas Government Code, sec.552.261, Texas Government Code, and sec.71.8, Texas Administrative Code. (B) Microfilm. The fee for microfilm of UCC documents is pursuant to sec.405.031(c)-(d), Texas Government Code, sec.552.261, Texas Government Code, and sec.71.8, Texas Administrative Code. (C) TIF files. The fee for TIF files of UCC documents is pursuant to sec.9.407(b), Texas Business and Commerce Code (or page equivalent for electronically transmitted search responses), sec.405.031(c)-(d), Texas Government Code, sec.552.261, Texas Government Code, and sec.71.8, Texas Administrative Code. (D) EDI documents. The fee for electronically transmitted UCC documents is pursuant to sec.9.407(b), Texas Business and Commerce Code (or page equivalent for electronically transmitted search responses), sec.405.031(c)-(d), Texas Government Code, sec.552.261, Texas Government Code, and sec.71.8, Texas Administrative Code. (3) Data from the information management system is as follows. (A) Full extract. The fee for a bulk data extract is pursuant to sec.405.018 and sec.405.031(c)-(d), Texas Government Code, sec.552.261, Texas Government Code, and sec.71.8, Texas Administrative Code. (B) Update extracts. The fee for an update extract is pursuant to sec.405.018 and sec.405.031(c)-(d), Texas Government Code, sec.552.261, Texas Government Code, and sec.71.8, Texas Administrative Code. (C) Format. Extracts from the UCC information management system are available in formats pursuant to sec.405.018 and sec.405.031(c)-(d), Texas Government Code, sec.552.261, Texas Government Code, and sec.71.8, Texas Administrative Code. (4) Third party on-line services. The fee for a UCC search by debtor name or financing statement number is pursuant to sec.405.018, Texas Government Code and sec.71.8, Texas Administrative Code. The fee for a UCC search by secured party name is pursuant to sec.405.018, Texas Government Code and sec.71.8, Texas Administrative Code. Users are required to post a minimum deposit with the secretary of state's office to establish an account for Direct Access in accordance with sec.405.018, Texas Government Code and sec.71.8, Texas Administrative Code. sec.95.117. New Practices and Technologies. The filing officer is authorized to adopt practices and procedures to accomplish receipt, processing, maintenance, retrieval and transmission of, and remote access to, Article 9 filing data by means of electronic, voice, optical and/or other technologies, and, without limiting the foregoing, to maintain and operate, in addition to or in lieu of a paper-based system, a non-paper-based Article 9 filing system utilizing any of such technologies. In developing and utilizing technologies and practices, the filing officer shall, to the greatest extent feasible, take into account compatibility and consistency with, and whenever possible be uniform with, technologies, practices, policies and regulations adopted in connection with Article 9 filing systems in other states. 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 July 27, 1998. TRD-9811833 Clark Kent Ervin Assistant Secretary of State Office of the Secretary of State Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-5701 SUBCHAPTER B. Information Required for Indexing 1 TAC sec.sec.95.200-95.208 The new sections are proposed under sec.sec.9.401-9.412 Texas Business and Commerce Code, sec.sec.35.01-35.09 Texas Business and Commerce Code, sec.sec.14.001-14.007 Texas Property Code, sec.sec.128, Texas Agriculture Code, sec.sec.188, Texas Agriculture Code, sec.sec.42.21 Texas Code of Criminal Procedure, and sec.sec.51.901-51.905 Texas Government Code which provides the Secretary of State with the authority to adopt rules necessary to administer subchapter D of Chapter 9, Texas Business and Commerce Code, subchapter A of Chapter 35, Miscellaneous, chapter 14, Uniform Federal Lien Registration Act, subtitle H of Title 5, Texas Agriculture Code, subtitle E of Title 6, Texas Agriculture Code, and subchapter J of Chapter 51, Texas Government Code. No other states, articles or codes are affected by this proposal. sec.95.200. Policy Statement. This subchapter contains rules describing information required for proper indexing of UCC documents by the filing officer. The rules describe the minimum and the maximum information required for establishing and maintaining the UCC information management system. The rules are not intended to describe information that satisfies the requirements of the UCC for any purpose other than the indexing of UCC documents by the filing officer. sec.95.201. Original Financing Statement. An original financing statement shall contain the following information for the purpose of maintaining an index of UCC information. (1) Identification of the document as a financing statement. (2) The name of the debtor(s). (3) The name and address of the secured party(ies). sec.95.202. Statement of Amendment of a Financing Statement. An amendment shall contain the following information for the purpose of maintaining an index of UCC information. (1) Identification of the document as a statement of amendment to a UCC financing statement. (2) Identification of the original financing statement (as defined in sec.95.101(8) of this title (relating to Definitions)) to be amended. (3) The name of the secured party(ies) of record whose interest is affected by the statement of amendment. sec.95.203. Statement of Assignment of Interest in Collateral. A statement of assignment of interest in collateral shall contain the following information for the purpose of maintaining an index of UCC information. (1) Identification of the document as a statement of assignment. (2) A designation whether the assignment is a full or partial assignment of rights under the financing statement. The designation shall apply only to the secured party(ies) affected by the statement of assignment. (3) Identification of the original financing statement (as defined in sec.95.101(8) of this title (relating to Definitions)). (4) The name of the secured party(ies) of record whose interest is to be assigned. (5) The name(s) and address(es) of the assignee(s). sec.95.204. Continuation Statement. A continuation statement shall contain the following information for the purpose of maintaining the UCC information management system. (1) Identification of the document as a continuation statement. (2) Identification of the original financing statement (as defined in sec.95.101(8) of this title (relating to Definitions)). (3) The name of the secured party(ies) of record whose interest is to be continued. sec.95.205. Termination Statement. A termination statement shall contain the following information for the purpose of maintaining the UCC information management system. (1) Identification of the document as a termination statement. (2) Identification of the original financing statement (as defined in sec.95.101(8) of this title (relating to Definitions)). (3) The name of the secured party(ies) of record whose interest is terminated. sec.95.206. Statement of Release of Interest in Collateral. A statement of release of collateral shall contain the following information for the purpose of maintaining an index of UCC information. (1) Identification of the document as a statement of release of collateral. (2) Identification of the original financing statement (as defined in sec.95.101(8) of this title (relating to Definitions)). (3) The name of the secured party(ies) of record whose interest is affected by the statement of release. sec.95.207. Other Amendments. (a) Identification of the document as an amendment and the desired amendment for which it is being recorded. (b) Identification of the original financing statement (as defined in sec.95.101(8) of this title (relating to Definitions)). (c) The name of the secured party(ies) of record whose interest is affected by the amendment. 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 July 27, 1998. TRD-9811834 Clark Kent Ervin Assistant Secretary of State Office of the Secretary of State Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-5701 SUBCHAPTER C. Acceptance and Refusal of Documents 1 TAC sec.sec.95.300-95.304 The new sections are proposed under sec.sec.9.401-9.412 Texas Business and Commerce Code, sec.sec.35.01-35.09 Texas Business and Commerce Code, sec.sec.14.001-14.007 Texas Property Code, sec.sec.128, Texas Agriculture Code, sec.sec.188, Texas Agriculture Code, sec.sec.42.21 Texas Code of Criminal Procedure, and sec.sec.51.901-51.905 Texas Government Code which provides the Secretary of State with the authority to adopt rules necessary to administer subchapter D of Chapter 9, Texas Business and Commerce Code, subchapter A of Chapter 35, Miscellaneous, chapter 14, Uniform Federal Lien Registration Act, subtitle H of Title 5, Texas Agriculture Code, subtitle E of Title 6, Texas Agriculture Code, and subchapter J of Chapter 51, Texas Government Code. No other states, articles or codes are affected by this proposal. sec.95.300. Policy Statement. The duties and responsibilities of the filing officer with respect to the administration of the UCC are ministerial. In accepting for filing or refusing to file a UCC document pursuant to these rules, the filing officer does none of the following. (1) Determine the legal sufficiency or insufficiency of a document. (2) Determine that a security interest in collateral exists or does not exist. (3) Determine that information in the document is correct or incorrect, in whole or in part. (4) Create a presumption that information in the document is correct or incorrect, in whole or in part. sec.95.301. Duty to File. Provided that there is no ground to refuse acceptance of the document under sec.95.302 of this title (relating to Grounds for Refusal of UCC Document), a UCC document is filed upon receipt by the filing officer with the filing fee and the filing officer shall promptly index the UCC document. sec.95.302. Grounds for Refusal of UCC Document. The following grounds are the sole grounds for the filing officer's refusal to accept a UCC document for filing. As used herein, the term "legible" is not limited to refer only to written expressions on paper: it requires a machine- readable transmission for electronic transmissions and an otherwise readily decipherable transmission in other cases. (1) Debtor name. A UCC document that is required to name a debtor under Subchapter B of this chapter shall be refused if the document fails to include a legible debtor name. (2) Secured party name. A UCC document that is required to name a secured party or a secured party of record under Subchapter B of this chapter shall be refused if the document fails to include a legible such secured party name. (3) Secured party address. An original financing statement shall be refused if it fails to include a legible address for each named secured party. (4) Assignee name and address. A UCC document that names an assignee shall be refused if the assignee's name or address is illegible. (5) Lack of identification of original financing statement. A UCC document other than an original financing statement shall be refused if the document's identification of the original financing statement does not correspond to the identification number of a financing statement then active in the UCC information management system. (6) Insufficient identification of original financing statement. A UCC document other than an original financing statement shall be refused if it fails to identify one or more authorizing secured parties of record or if it fails to set forth a signature. A UCC document other than an original financing statement shall be refused if identification of the original financing statement corresponds to an original financing statement in the filing officer's UCC index, and the document identifies as the authorizing secured party(ies) of record no secured party of record that corresponds to a secured party of record on the identified financing statement. For this purpose an authorizing secured party of record shall be deemed to so correspond if its name matches that of a name (ignoring punctuation and "business endings" such as "Inc.," "Co.," "Corporation," "L.P.," "LLC" and the like), or its address matches that of an address of a secured party of record on the identified financing statement. This rule shall not provide grounds for refusal to accept a document if a remitter or a secured party provides a satisfactory written explanation for the discrepancy between the name of a secured party on the document and the name of a secured party on the corresponding financing statement. (7) Other required information. A UCC document that does not identify itself as an original financing statement or another type of UCC document shall be refused. (8) Timeliness of continuation statement. A continuation statement shall be refused if it is not received during the six month period concluding on the day upon which the financing statement would lapse. (A) First day permitted. The first day on which a continuation statement may be filed is the date of the month corresponding to the date upon which the financing statement would lapse, six months preceding the month in which the financing statement would lapse. If there is no such corresponding date during the sixth month preceding the month in which the financing statement would lapse, the first day on which a continuation statement may be filed is the last day of the sixth month preceding the month in which the financing statement would lapse. (B) Last day permitted. The last day on which a continuation statement may be filed is the date upon which the financing statement lapses. (9) Fee. A document shall be refused if the document is accompanied by less than the full filing fee tendered by a method described in sec.95.113 of this title (relating to Methods of Payment). (10) EDI refusal. UCC documents delivered by EDI may be refused as provided in sec.95.448 of this title (relating to Refusal of EDI Document) for reasons not applicable to other delivery methods. sec.95.303. Grounds not Warranting Refusal. The sole grounds for the filing officer's refusal to accept a document for filing are enumerated in sec.95.302 of this title (relating to Grounds for Refusal of UCC Document). The following are examples of defects that do not constitute grounds for refusal to accept a document. They are not a comprehensive enumeration of defects outside the scope of permitted grounds for refusal to accept a UCC document for filing. (1) Errors. The UCC document contains or appears to contain a misspelling or other apparently erroneous information. (2) Incorrect names. (A) The UCC document appears to identify a debtor or an assignee incorrectly (except as provided in sec.95.302 of this title). (B) The UCC document appears to identify a secured party or a secured party of record incorrectly (except as provided in sec.95.302(6) of this title). (3) Extraneous information. The UCC document contains additional or extraneous information of any kind. (4) Insufficient information. The UCC document contains less than the information required by Article 9 of the UCC, provided that the document contains the information required in Subchapter B of this chapter. (5) Collateral description. The UCC document incorrectly identifies collateral, or contains an illegible or unintelligible description of collateral, or appears to contain no such description. (6) Signature. The document does not appear to be signed, or does not appear to contain the appropriate signature. (7) Excessive fee. The document is accompanied by funds in excess of the full filing fee. sec.95.304. Procedure Upon Refusal. If the filing officer finds grounds under sec.95.302 of this title (relating to Grounds for Refusal of UCC Document) to refuse acceptance of a UCC document, the filing officer shall return the document to the remitter and may refund the filing fee. The document shall be accompanied by a notice that contains a brief description of the reason for refusal to accept the document and that cites the provision of rule 95.302 that establishes the ground for refusal. The notice shall be delivered to the remitter, whether or not the document or another writing contains a request that an acknowledgment copy be sent to a secured party or another person. A refund may be delivered with the document and notice or under separate cover. The notice shall be sent no later than the second business day after of the determination to refuse acceptance of the document. For the purpose of this rule, "sent" means hand delivered to the remitter or deposited, correctly addressed and postpaid, in the regular U.S. mail if the document was originally submitted by mail or in person: in other cases, "sent" means transmitted to the remitter by the same means the document was submitted if such means is then-available to the filing office and, if the remitter used a private courier service, the remitter provides the filing office with a prepaid waybill for such courier or its account number with such courier. If the means used by the remitter for submission is not available to the filing office, the notice shall be sent by one of the means provided for mailed documents. 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 July 27, 1998. TRD-9811835 Clark Kent Ervin Assistant Secretary of State Office of the Secretary of State Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-5701 SUBCHAPTER D. UCC Information Management System 1 TAC sec.sec.95.400-95.414 The new sections are proposed under sec.sec.9.401-9.412 Texas Business and Commerce Code, sec.sec.35.01-35.09 Texas Business and Commerce Code, sec.sec.14.001-14.007 Texas Property Code, sec.sec.128, Texas Agriculture Code, sec.sec.188, Texas Agriculture Code, sec.sec.42.21 Texas Code of Criminal Procedure, and sec.sec.51.901-51.905 Texas Government Code which provides the Secretary of State with the authority to adopt rules necessary to administer subchapter D of Chapter 9, Texas Business and Commerce Code, subchapter A of Chapter 35, Miscellaneous, chapter 14, Uniform Federal Lien Registration Act, subtitle H of Title 5, Texas Agriculture Code, subtitle E of Title 6, Texas Agriculture Code, and subchapter J of Chapter 51, Texas Government Code. No other states, articles or codes are affected by this proposal. sec.95.400. Policy Statement. The filing officer uses an information management system to store, index, and retrieve information relating to UCC documents. The information management system includes an index of the names of debtors with an active status. The rules in this section describe the UCC information management system. sec.95.401. Primary Data Elements. The primary data elements used in the UCC information management system are the following. (1) Identification numbers. (A) Each original financing statement is identified by unique information assigned by the filing officer described in sec.95.101(8) of this title (relating to Definitions). Identification of the original financing statement is stamped on tangible UCC documents or otherwise permanently associated with the record maintained for UCC documents in the UCC information management system. A record is created in the information management system for each original financing statement and all information comprising such record is maintained in such system. Such record is identified by the same information assigned to the original financing statement. (B) A UCC document other than an original financing statement is identified by unique information assigned by the filing officer. In the information management system, records of all UCC documents other than original financing statements are linked to the record of the original financing statement to which the UCC documents relate. (2) Type of document. The type of UCC document from which data is transferred is identified in the information management system from information supplied by the remitter. (3) Filing date and filing time. The filing date and filing time of UCC documents are stored in the information management system. Calculation of the lapse date of an original financing statement is based upon the filing date. (4) Identification of parties. The names and addresses of debtors and secured parties are transferred from UCC documents to the UCC information management system using one or more data entry or transmittal techniques. (5) Status of parties. In the information management system, a record is created for each debtor and secured party for each financing statement. Each record of each debtor and secured party has a status of active or inactive as described in sec.sec.95.406 et seq of this title (relating of UCC Information Management System). (6) Status of financing statement. In the information management system, each financing statement has a status of active, lapsed, terminated, or revoked. (7) Page count. The total number of pages in a UCC document is maintained in the information management system. sec.95.402. Names of Debtors Who are Individuals. For the purpose of this rule, "individual" means a human being, or a decedent in the case of a debtor that is such decedent's estate. This rule applies to the name of a debtor, a secured party, or an assignee on a UCC document who is an individual. (1) Individual name fields. The names of individuals are stored in files that include only the names of individuals, and not the names of entities. Separate data entry fields are established for first (given), middle (given), last names (surnames or family names), and suffix (given) of individuals. The filing officer assumes no responsibility for the accurate designation of the components of a name but will accurately enter the data in accordance with the filer's designations. (2) Truncation - individual names. Personal name fields in the UCC database are fixed in length. Although filers should continue to provide full names on their UCC documents, a name that exceeds the fixed length is entered as presented to the filing officer, up to the maximum length of the data entry field. The length of data entry name fields are as follows. (A) First name: 25 characters. (B) Middle name: 25 characters. (C) Last name: 35 characters. (D) Suffix: 10 characters. sec.95.403. Names of Debtors Who are Entities. For the purpose of this rule, "entity" means a legal person who is not an individual under sec.95.402 of this title (relating to Names of Debtors Who are Individuals), except the estate of a decedent. This rule applies to the name of an entity who is a secured party, or an assignee on a UCC document. (1) Single field. The names of entities are stored in files that includes only the names of entities and not the names of individuals. A single field is used to store an entity name. (2) Truncation - entity names. The business name field in the UCC database is fixed in length. The maximum length is 60 characters. Although filers should continue to provide full names on their UCC documents, a name that exceeds the fixed length is entered as presented to the filing officer, up to the maximum length of the data entry field. sec.95.404. Estates. Although they are entities, estates are treated as if the decedent were the debtor under sec.95.402 of this title (relating to Names of Debtors Who are Individuals). sec.95.405. Trusts. Trusts are treated as entities. If the trust is named in its organic document(s), its full legal name, as set forth in such document(s), is used. If the trust is not so named, the name of the settlor is used followed by the word "Trustee" along with such information provided by the filer to distinguish the debtor trust from other trusts having the same settlor. sec.95.406. Original Financing Statement. Upon the filing of an original financing statement the status of the parties and the status of the financing statement shall be as follows. (1) Status of secured party. The status of a secured party named on the document shall be active, except that if the document names a total assignee, a secured party/assignor shall not have an active status as a secured party and a secured party/total assignee shall have active status as a secured party. (2) Status of debtor. The status of a debtor named on the document shall be active. (3) Status of financing statement. The status of the financing statement shall be active. A lapse date shall be calculated, five years from the file date, unless otherwise required by statute. sec.95.407. Statement of Amendment of a Financing Statement. Status of secured party and debtor. A statement of amendment shall affect the status of its debtor(s) and secured party(ies) as follows: (1) Collateral amendment or address change. A statement of amendment that amends only the collateral description or one or more party's(ies) address has no effect upon the status, active or inactive, of any debtor or secured party. If a statement of amendment is authorized by less than all of the active secured parties (or, in the case of an amendment that adds collateral, less than all of the active debtors), the statement affects only the interests of each authorizing secured party (or debtor). (2) Debtor name change. A statement of amendment that changes a debtor's name has no effect on the status, active or inactive, of any debtor or secured party, except that the related original financing statement and all UCC documents that include an identification of such original financing statement shall be cross- indexed in the UCC information management system so that a search under either the debtor's old name or the debtor's new name will reveal such original financing statement and such related UCC documents. Such a statement of amendment affects only the rights of its authorizing secured party(ies). (3) Secured party name change. A statement of amendment that changes the name of a secured party has no effect on the status, active or inactive, of any debtor and has no effect on the status of any secured party unless the secured party whose name is being changed has authorized the statement of amendment, in which case the old name of the secured party is deleted from the UCC information management system and is replaced with the new name. (4) Addition of a debtor. A statement of amendment that adds a new debtor name has no effect upon the status of any party to the amendment or the related original financing statement, except the new debtor name shall be added as a new active debtor on the financing statement. The addition shall affect only the rights of the secured party(ies) authorizing the statement of amendment. (5) Addition of a secured party. A statement of amendment that adds a new secured party shall not affect the status of any party, except that the new secured party name shall be added as a new active secured party on the financing statement. (6) Deletion of a debtor. A statement of amendment that deletes a debtor shall have no effect on the status, active or inactive, of any party to the financing statement. (7) Deletion of a secured party. A statement of amendment that deletes a secured party shall have no effect on the status, active or inactive, of any party to the financing statement, unless it is authorized by the secured party being deleted, in which case such secured party is rendered inactive if such secured party is not the last active secured party of record. The status of the last active secured party can not be inactivated. sec.95.408. Statement of Assignment of Interest in Collateral. (a) Designation as full or partial assignment. A statement of assignment should designate whether the assignment of a secured party's interest in all collateral under the financing statement is a full or partial assignment of that interest. The designation shall apply to all secured parties named on the statement of assignment. If no designation is made, the statement of assignment will be treated as a partial assignment. (b) Full assignment - status of secured parties. Upon filing a statement of full assignment, the status of a secured party of record named on the statement of assignment as an authorizing assignor shall be inactive. The status of an assignee shall be that of an active secured party. (c) Partial assignment - status of secured parties. Upon filing a statement of partial assignment, the status of a secured partyof record named on the statement of assignment as an authorizing assignor shall continue to be active. The status of the assignee shall also be that of an active secured party. (d) Status of other secured parties. The filing of a statement of assignment shall have no effect upon the status of a secured party not named on the statement of assignment as an authorizing assignor. (e) Status of debtor. The filing of a statement of assignment shall have no effect upon the status of a debtor. (f) Status of financing statement. A statement of assignment shall have no effect upon the status (active, lapsed, terminated, or revoked) of the financing statement. sec.95.409. Continuation Statement. (a) Continuation of lapse date. Upon the timely filing of a continuation statement by any secured party(ies) of record, the lapse date of the financing statement shall be continued for the period authorized by the UCC only with respect to such secured party(ies). (b) Status of secured party. The filing of a continuation statement shall have no effect upon the status, active or inactive, of a secured party. (c) Status of debtor. The filing of a continuation statement shall have no effect upon the status of a debtor. (d) Status of financing statement. Upon the filing of a continuation statement, the status of the financing statement remains active. sec.95.410. Termination Statement. (a) Status of secured party. Upon filing a termination statement, the status of each secured party named on the termination statement as an authorizing secured party shall be inactive. The filing of a termination shall have no effect upon the status of a secured party that is not named as an authorizing secured party on the termination statement. (b) Status of debtor. The filing of a termination statement shall have no effect upon the status of a debtor. (c) Status of financing statement. A financing statement shall have the status of terminated upon the filing of a termination statement that, together with all previously filed termination statements, name all active secured parties of record. sec.95.411. Procedure Upon Lapse Date. On the date upon which a financing statement would lapse in the absence of the timely filing of a continuation statement, the information management system performs or is caused to perform the following operations. (1) Status of secured party. The status of each secured party remains active if any then-active secured party has filed a timely continuation statement. (2) Status of debtor. The status of a debtor remains active, if any then-active secured party has filed a timely continuation statement. The status of a debtor is inactive in the absence of a timely filing of a continuation statement by any then-active secured party. (3) Status of financing statement. The status of a financing statement shall be continued where required by statute and for the period of time required by statute if a continuation statement has been timely filed by a then-active secured party. The status of a financing statement shall be lapsed in the absence of the timely filing of a continuation by any then-active secured party. sec.95.412. Statement of Release of Collateral. The filing officer maintains no record of the designation of a statement of release of collateral as a full or partial release of collateral. (1) Status of secured party. The filing of a statement of release of collateral shall have no effect upon the status of a secured party on the financing statement. (2) Status of debtor. The filing of a statement of release of collateral shall have no effect upon the status of a debtor named on the financing statement. (3) Status of financing statement. The filing of a statement of release of collateral shall have no effect on the status of a financing statement. sec.95.413. System Security. (a) Physical Security. The computer system resides on the third floor of the James Earl Rudder Building. There are two doors that allow entry into the computer room. These two doors are secured with combination cipher locks. A third entry is located by the service elevator. This entry requires a key to open the elevator doors. Cipher lock and key access is limited to selected personnel. (b) Limitations on Electronic Access. The internal on-line system and the external, Direct Access system has several layers of access security passwords. Menus are controlled by the user department supervisors. Internal and external access is customized to fit functional needs. (c) Procedures to control modification to the system. All of the software programs reside in a production environment, which is inaccessible to application developers. System's manager and operation's manager control access to these areas and these areas can only be accessed by developers in a read only mode. When system changes are requested, the following steps are taken: (1) The developer transfers the production program(s) to a development environment. (2) The change is then made and tested in the development environment, which is a functional image of the production environment. (3) Once the change is complete and approved to be moved to production, the developer completes a CCL (Change Control Log). (4) The CCL is approved and initialed by the Application Support Manager. (5) The Application Support Manager transfers the CCL's to the Operations Manager. (6) Operations reviews the CCL's and then submits approved CCL's to Systems. (7) Systems reviews the CCL's and copies the approved changes to production. (8) The CCL's are then returned to the Application Support Manager to be filed for historical purposes. sec.95.414. Database Security. (a) The UCC database files reside on magnetic storage devices within an automated computer environment under a multi-level security. Access is restricted to production and batch processors. Application developers access to production files is controlled by request from the appropriate Application Support Manager (ASM). (b) Backup Procedure. The UCC database is backed up incrementally on a nightly basis. The UCC database is backed up in total on a weekly basis. All backups are removed to off-site storage the day after they have been run. Off-site storage is rotated on a daily basis where the newest tapes are taken off site and tapes that are over one week old are returned back to the office for reuse. 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 July 27, 1998. TRD-9811836 Clark Kent Ervin Assistant Secretary of State Office of the Secretary of State Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-5701 SUBCHAPTER E. EDI Documents 1 TAC sec.sec.95.440-95.450 The new sections are proposed under sec.sec.9.401-9.412 Texas Business and Commerce Code, sec.sec.35.01-35.09 Texas Business and Commerce Code, sec.sec.14.001-14.007 Texas Property Code, sec.sec.128, Texas Agriculture Code, sec.sec.188, Texas Agriculture Code, sec.sec.42.21 Texas Code of Criminal Procedure, and sec.sec.51.901-51.905 Texas Government Code which provides the Secretary of State with the authority to adopt rules necessary to administer subchapter D of Chapter 9, Texas Business and Commerce Code, subchapter A of Chapter 35, Miscellaneous, chapter 14, Uniform Federal Lien Registration Act, subtitle H of Title 5, Texas Agriculture Code, subtitle E of Title 6, Texas Agriculture Code, and subchapter J of Chapter 51, Texas Government Code. No other states, articles or codes are affected by this proposal. sec.95.440. Definitions. For the purpose of rules relating to the electronic data interchange of documents, terms shall have the meaning provided in this rule, unless the context otherwise requires. (1) "EDI" means the electronic data interchange of UCC documents, UCC search requests and related responses. (2) "EDI document" means a UCC document transmitted from a remitter to the filing officer by EDI techniques authorized under this rule. sec.95.441. EDI Authorized. (a) A remitter may be authorized for EDI upon the written authorization of the filing officer. The filing officer shall authorize a remitter to engage in EDI if: (1) the remitter holds an account for the billing of fees by the filing officer, (2) the remitter has entered into a trading partner agreement, in form and substance satisfactory to the filing officer, with the filing office, and (3) the filing officer determines, after appropriate testing of transmissions in accordance with the filing officer's specifications, that the remitter is capable of transmitting EDI documents in a manner that permits the filing officer to receive, index, and retrieve the EDI documents. (b) The filing officer may suspend or revoke the authorization when, in the filing officer's sole discretion, it is determined that a remitter's transmissions are incompatible with the filing officer's EDI system. A request to be authorized to transmit EDI documents shall be addressed to the filing officer at the address identified in sec.95.104(a)(1) of this title (relating to Filing Office Identification). Upon receipt of a request for authorization, the filing officer shall provide the remitter with necessary information on the record layout of the transmission, including record length, format, network address for transmission, and other necessary specifications. sec.95.442. ANSI Standard Adopted. ANSI X12 transaction set 154, as adopted by the American National Standards Institute and in effect from time to time, is adopted in this state as the format for electronic transmission of UCC documents, although the filing officer shall, periodically and at the request of an authorized EDI remitter, identify which versions and releases of ANSI X12 154 are then in use by and acceptable to the filing office. sec.95.443. Standard Form and Applicable Fee. Notwithstanding the provisions of sec.95.108 of this title (relating to Requirements to Qualify for Standard Form Fee), an EDI document qualifies for the standard fee set forth in sec.95.111 of this title (relating to Filing Fees). sec.95.444. Implementation Guide. The filing office publishes an implementation guide that prescribes in further detail the use of ANSI X12 154 in the UCC filing system. The guide is available upon request made in writing to the filing office at its mailing address set forth in sec.95.104(a)(1) of this title (relating to Filing Office Identification). (1) The guide identifies the version(s) or release(s) of ANSI X12 154 currently in use by the filing office. (2) The guide identifies the types of UCC documents and related responses that can currently be transmitted through EDI. (3) The guide prescribes the manner of transmission of all information contained in a UCC document and any other information required for the filing office to fulfill its responsibilities under the UCC and these rules, including identification of UCC documents, information necessary to collect fees, identification of debtors and secured parties, description of collateral and the authentication of UCC documents. (4) The guide may be amended from time to time. Notice of amendments will be provided to each remitter authorized to transmit EDI documents to the filing office not less than 30 days prior to the effectiveness of the relevant amendment(s). sec.95.445. Authentication. (a) A segment of an EDI document is designated for transmission of the symbol adopted by the relevant debtor(s) or secured party(ies) with intent to authenticate the relevant UCC document pursuant to Section 1-201(39) of the UCC and as required by Section 9-402(1) of the UCC. (b) The transmission of such a symbol on behalf of a debtor shall constitute a representation of the remitter and the relevant secured party(ies) that the relevant secured party(ies) has(ve) a writing signed by such debtor by which such debtor adopts the contents of the relevant segment as such symbol with the intent to authenticate the EDI document. The transmission of such a symbol on behalf of a secured party shall constitute a representation of the remitter that the remitter has a writing signed by such secured party by which such secured party adopts the contents of the relevant segment as such symbol with intent to authenticate the relevant EDI document. sec.95.446. Document Types. An EDI document shall be identified as to type by the transmission of the appropriate identifier required in the implementation guide referred to in sec.95.444 of this title (relating to Implementation Guide). The filing officer, in responding to a request for a paper copy of an EDI document, shall print the full text of the relevant one of the following statements corresponding to the type of EDI document requested. (1) For an original financing statement: "Financing Statement - This financing statement is presented to the filing officer for filing pursuant to the Uniform Commercial Code." (2) For a statement of amendment financing statement: "Amendment - The financing statement bearing the file number shown on this document is hereby amended as follows:" (3) For a statement of assignment of an interest in collateral: "Assignment - The secured party certifies that the assignee named in this document has been assigned some or all of the secured party's rights under the financing statement bearing the file number transmitted in this document." (4) For a continuation statement: "Continuation - The original financing statement bearing the file number shown on this document is still effective." (5) For a termination statement: "Termination - The secured party certifies that a security interest is no longer claimed by it under the financing statement bearing the file number shown on this document." sec.95.447. Identification of Secured Party. When an EDI document requires the name of a secured party, the name of a secured party of record, or the address of a secured party, the remitter shall transmit to the filing officer a secured party identification number assigned by the filing officer if such a number is assigned. The filing officer, in responding to a request for a paper copy of an EDI document, shall print the full name and address of the secured party corresponding to the identification number. A list of secured parties identified by the filing officer pursuant to this rule is available from the filing officer at the address stated in sec.95.104(a)(1) of this title (relating to Filing Office Identification). sec.95.448. Refusal of EDI Document. A record transmitted to the filing officer that is not machine-readable or does not contain the information required by the implementation guide referred to in sec.95.444 of this title (relating to Implementation Guide) in an acceptable format shall be refused. The filing officer shall provide regularly scheduled (not less frequently than daily) electronic notices to the relevant remitter containing identification of EDI documents refused and appropriate error codes or explanations for the refusal when possible. However, records that cannot be read because they are garbled or are in improperly structured data packets, or which are received from persons not authorized for EDI by the filing office will not receive a refusal response. Readable transmissions from authorized transmitters will generate electronic confirmation of acceptance or rejection. sec.95.449. Acceptance and Archives. Upon acceptance of an EDI document for filing, a report shall automatically be generated which shall contain all of the information related to the document including all information transmitted by the remitter for inclusion in the document as prescribed by the implementation guide referred to in sec.95.444 of this title (relating to Implementation Guide). The information contained in the report shall promptly be rendered and stored in an archival medium. The filing officer shall provide regularly scheduled (not less frequently than daily) electronic notices to remitters of accepted EDI documents to confirm such acceptance and the creation of such archive. sec.95.450. EDI UCC Search Requests. (a) UCC search requests may be submitted electronically by persons authorized to submit EDI documents in the manner set forth in the implementation guide referred to in sec.95.444 of this title (relating to Implementation Guide). Unless otherwise specified in said implementation guide, accepted requests will generate searches conducted under the same search criteria applicable to search requests not submitted electronically. (b) Electronic search requests may be submitted only by persons who are authorized to transmit EDI documents pursuant to sec.95.441 of this title (relating to EDI Authorized) and who have entered into arrangements acceptable to the filing officer for the payment of search and copy fees. (c) Responses to electronic search requests will be made available electronically as soon as practicable, in a manner to be specified in the implementation guide referred to in sec.95.444 of this title (relating to Implementation Guide). Such responses may, for a time, be limited to a search report with copies of reported documents being made available by non-electronic means. Until such time as electronic responses are available in any form, responses to electronic search requests will be generated and transmitted in the same manner and by the same means as responses to non-electronic search requests. 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 July 27, 1998. TRD-9811837 Clark Kent Ervin Assistant Secretary of State Office of the Secretary of State Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-5701 SUBCHAPTER F. Filing and Data Entry Procedures 1 TAC sec.sec.95.500-95.520 The new sections are proposed under sec.sec.9.401-9.412 Texas Business and Commerce Code, sec.sec.35.01-35.09 Texas Business and Commerce Code, sec.sec.14.001-14.007 Texas Property Code, sec.sec.128, Texas Agriculture Code, sec.sec.188, Texas Agriculture Code, sec.sec.42.21 Texas Code of Criminal Procedure, and sec.sec.51.901-51.905 Texas Government Code which provides the Secretary of State with the authority to adopt rules necessary to administer subchapter D of Chapter 9, Texas Business and Commerce Code, subchapter A of Chapter 35, Miscellaneous, chapter 14, Uniform Federal Lien Registration Act, subtitle H of Title 5, Texas Agriculture Code, subtitle E of Title 6, Texas Agriculture Code, and subchapter J of Chapter 51, Texas Government Code. No other states, articles or codes are affected by this proposal. sec.95.500. Policy Statement. This section contains rules describing the filing procedures of the filing officer upon and after receipt of a UCC document. It is the policy of the filing officer to file promptly a document that conforms to these rules. Except as provided in these rules, data are transferred from UCC documents to the information management system exactly as the data are set forth in the document. Personnel who create reports in response to search requests type search criteria exactly as set forth on the search request. No effort is made to detect or correct errors of any kind. sec.95.501. Definitions. The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. (1) For the purpose of this subchapter, "individual" means a human being, or a decedent in the case of a debtor that is such decedent's estate. (2) For the purpose of this subchapter, "entity" means a legal person who is not an individual under sec.95.402 of this title (relating to Names of Debtors Who are Individuals). sec.95.502. Document Indexing and Other Procedures before Archiving. (a) Date and time stamp. The date and time of receipt are noted on the document (or otherwise permanently associated with the record maintained for a UCC document in the UCC information management system) at the earliest possible time. (b) Cash management. Transactions necessary to payment of the filing fee are performed. (c) Document review. The filing office determines whether a ground exists to refuse the document under sec.95.302 of this title (relating to Grounds for Refusal of UCC Document). (1) File stamp. If there is no ground for refusal of the document, the document is deemed filed and a unique identification number and the filing date is applied to the document or permanently associated with the record of the document maintained in the UCC information management system. The sequence of the identification number is not an indication of the order in which the document was received. (2) Correspondence. If there is a ground for refusal of the document, notification of refusal to accept the document is prepared as provided in sec.95.304 of this title (relating to Procedure Upon Refusal). (d) Data entry. Data entry and indexing functions are performed as described in this subchapter and in Subchapter G of this chapter. (e) Acknowledgment copy and other correspondence. If the filing is made in person or by means of an EDI transmission, confirmation of the filing is given to the remitter by delivering to the remitter an acknowledgment copy of the filed document provided by the remitter or transmitted to the remitter by EDI transmission by transmitting an identification known to the remitter of the UCC document filed as well as the unique identification number assigned to the document by the filing office and the date of filing. Acknowledgment copies of filings made by means other than personal delivery or EDI transmission are sent to the secured party (or the first secured party if there are more than one) named on the UCC document or to the remitter if the remitter so requests by regular mail or by overnight courier if the remitter provides a prepaid waybill or access to the remitter's account with the courier. sec.95.503. Filing Date. The filing date of a UCC document is the date the UCC document is received with the proper filing fee if the filing office is open to the public on that date or, if the filing office is not so open on that date, the filing date is the next date the filing office is so open, except that, in each case, UCC documents excluding electronically transmitted documents received after 5:00 PM CST shall be deemed received on the following day. The filing officer may perform any duty relating to the document on the filing date or on a date after filing date. sec.95.504. Filing Time. The filing time of a UCC document is determined as provided in sec.95.106 of this title (relating to UCC Document Delivery). sec.95.505. Lapse Date and Time. A lapse date is calculated for each original financing statement (unless the debtor is designated as a transmitting utility). The lapse date is the same date of the same month as the filing date in the fifth year after the filing date or relevant subsequent fifth anniversary thereof if timely continuation statement is filed. The lapse takes effect at midnight at the end of the lapse date. sec.95.506. Errors of the Filing Officer. The filing office may correct the errors of filing officer personnel in the UCC information management system at any time. If the correction is made after the filing officer has issued a certification date that includes the filing date of a corrected document, the filing officer shall proceed as follows. An entry shall be made upon the record of the financing statement in the UCC information management system stating the date of the correction and explaining the nature of the corrective action taken. The notation shall be preserved for so long as the record is preserved in the UCC information management system. sec.95.507. Data Entry of Names - Designated Fields. Whenever a filing designates whether a name is a name of an individual or an entity and, if an individual, also designates the first, middle, last names, and suffix, the following rules apply. (1) Entity names. Entity names are entered into the UCC information management system exactly as set forth in the UCC document, even if it appears that multiple names are set forth in the document or if it appears that the name of an individual has been included in the field designated for an entity name. (2) Individual names. On a form that designates separate fields for first, middle, last names, and suffix the filing officer enters the names into the first, middle, last name, and suffix fields in the UCC information management system exactly as set forth on the form. (3) Designated fields encouraged. The filing office encourages the use of forms that designate separate fields for individual and entity names and separate fields for first, middle, last names, and suffix. Such forms diminish the possibility of filing office error and help assure filers' expectations are met. However, filers should be aware that the inclusion of names in an incorrect field or failures to transmit names accurately to the filing office may cause filings to be ineffective. All documents submitted through EDI will be required to use designated name fields. sec.95.508. Data Entry of Names - No Designated Fields. Whenever a filing fails to designate whether a name is a name of an individual or an entity and, if an individual also designates the first, middle, last names, and suffix, the following rules shall apply. (1) Identification of entities. When not set forth in a field designated for individual names, a name is treated as an entity name if it contains words or abbreviations that indicate entity status such as the following and similar words or abbreviations in foreign languages: association, church, college, company, co., corp., corporation, inc., limited, ltd., club, foundation, fund, L.L.C., limited liability company, institute, society, union, syndicate, GmBH, S.A. de C.V., limited partnership, L.P., limited liability partnership, L.L.P., trust, business trust, co-op, cooperative and other designations established by statutes to indicate a statutory entity. In cases where entity or individual status is not designated by the filer and is not clear, the filing officer will use their own judgment. (2) Identification of individuals. A name is entered as the name of an individual and not the name of an entity when the name is followed by a title substantially similar to one of the following titles, or the equivalent of one of the following titles in a foreign language: proprietor, sole proprietor, proprietorship, sole proprietorship, partner, general partner, president, vice president, secretary, M.D., O.D., D.D.S., attorney at law, Esq., accountant, CPA. In such cases, the title is not entered. (3) DBA, AKA, FKA. Entity names are entered as separate debtors and names when separated by words or abbreviations such as "doing business as," "also known as," "formerly known as," "DBA," "AKA," or "FKA," "a division of," or "a subsidiary of." Such words and abbreviations are not entered. Additional filing fees for the additional debtor name(s) may be required. (4) Individual and entity names on a single line. Where it is apparent that the name of an individual and the name of an entity are stated on a single line and not in a designated individual name field, the name of the individual and the name of the entity shall be entered as two separate debtors, one as an individual and one as an entity. Additional filing fees for the additional debtor name(s) may be required. (5) Individual names. In the absence of designated separate fields for first, middle, last names, and suffix, the following data entry rules apply. (A) Freestanding initials. An initial in the first position of the name is treated as a first name. An initial in the second position of the name is treated as a middle name. (B) Combined initials and names. An initial and a name to which the initial apparently corresponds is entered into one name field only (e.g. "D. (David)" in the name "John D. (David) Rockefeller" is entered as "John" (first name); "D. (David)" (middle name); "Rockefeller" (last name)). (C) Multiple individual names on a single line. Two personal names contained in a single line are entered as two, separate debtors (e.g. the debtor name "John and Mary Smith" is entered as two debtors: John Smith, and Mary Smith). (D) One word names. A one word name is entered as a last name (e.g. "Cher is treated as a last name). (E) Nicknames. A name in parentheses or quotes will be considered a nickname and shall be entered as a separate debtor. Additional filing fees for the additional debtor name(s) may be required. sec.95.509. Verification of Data Entry. The filing officer uses the following procedures to verify the accuracy of data entry tasks. (1) Double key entry is employed for data entered in the individual and entity fields. (2) Visual inspection of data entry changes is employed for data in the following fields. (A) Document identification fields. (B) Document type fields. (C) Individual and entity fields. (D) Address fields. sec.95.510. Original Financing Statement. A new record is opened in the UCC information management system for each original financing statement. (1) The name and address of each debtor named on the financing statement is entered into the record of the financing statement. (2) The name and address of each secured party named on the financing statement is entered into the record of the financing statement. sec.95.511. Statement of Amendment of a Financing Statement. (a) A record is created for the statement of amendment, linked to the record of the original financing statement by entry of identification of the original financing statement. (b) The names and addresses of additional debtors and secured parties are entered into the UCC information management system. sec.95.512. Statement of Assignment of Interest in Collateral. (a) A record is created for the statement of assignment, linked to the record of the original financing statement by entry of identification of the original financing statement. (b) Appropriate adjustments are made to the status of secured parties on the record of the financing statement. (See sec.95.408 of this title (relating to Statement of Assignment of Interest in Collateral)). (c) Absence of full/partial designation. A statement of assignment of interest in collateral shall be treated as a statement of partial assignment if the form fails to contain a designation whether the assignment is a full or partial assignment of a secured party's rights under the financing statement. sec.95.513. Continuation Statement. (a) A record is created for the continuation statement, linked to the record of the original financing statement by entry of identification of the original financing statement. (b) No adjustments are made to the status of secured party on the record of the financing statement. (See sec.95.409 of this title (relating to Continuation Statement)). sec.95.514. Statement of Release of Collateral. (a) A record is created for the statement of release, to the record of the original financing statement by entry of identification of the original financing statement. (b) No adjustments are made to the status of secured parties on the record of the financing statement. (See sec.95.412 of this title (relating to Statement of Release of Collateral)). sec.95.515. Termination Statement. Appropriate adjustments are made to the status of secured parties on the record of the financing statement. (See sec.95.410 of this title (relating to Termination Statement)). sec.95.516. Master Filings. (a) The filing officer may accept for filing a single UCC document for the purpose of assigning or amending more than one financing statement. Master amendments may accomplish one or both of the following purposes: amendment to change secured party name; amendment to change secured party address. (b) A master filing shall consist of a written document describing the requested assignment or amendment on a form approved by the filing office, and a machine readable file furnished by the remitter and created to the filing officer's specifications containing appropriate indexing information. A copy of master filing specifications is available from the filing officer upon request. Acceptance of a master filing is conditioned upon the determination of the filing officer in the filing officer's sole discretion. sec.95.517. Archives - General. Active filings are available by search of the debtor name or by request under a specific file number. Inactive records are available upon request by a specific file number only. (1) Paper UCC documents. (A) Storage. Documents are stored in expanding file pockets in sequential number in file boxes. (B) Retention. Documents are stored on site for six months after receipt. Documents are transported to State Archives for a period of two years six months prior to destruction. (2) Reductions. (A) Storage. Paper documents are reduced to either microfilm or computer media after indexing. (B) Retention. Microfilm and digital images are retained indefinitely. (3) Database Storage. The UCC Information Management system is backed up to magnetic tape every business day. sec.95.518. Archives - Data Retention. Data in the UCC information management system relating to financing statements that have lapsed or have been terminated are retained for at least twelve months from the date of lapse or termination. Such data will be maintained in the system for twelve months from the date of lapse or termination. Documents are purged from the UCC Information Management system and reduced to microfiche at least every six months and will thereafter be maintained in archives. sec.95.519. Archival Searches. Terminated or lapsed filings may only be searched by file number. Computer record data for purged documents may be retrieved from microfiche of purged records. sec.95.520. Notice of Bankruptcy. The filing officer takes no action upon receipt of a notification, formal or informal, of a bankruptcy proceeding involving a debtor named in the UCC information management system. Accordingly, filings will lapse in the information management system as scheduled unless properly continued. 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 July 27, 1998. TRD-9811838 Clark Kent Ervin Assistant Secretary of State Office of the Secretary of State Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-5701 SUBCHAPTER G. Search Requests and Reports 1 TAC sec.sec.95.601-95.605 The new sections are proposed under sec.sec.9.401-9.412 Texas Business and Commerce Code, sec.sec.35.01-35.09 Texas Business and Commerce Code, sec.sec.14.001-14.007 Texas Property Code, sec.sec.128, Texas Agriculture Code, sec.sec.188, Texas Agriculture Code, sec.sec.42.21 Texas Code of Criminal Procedure, and sec.sec.51.901-51.905 Texas Government Code which provides the Secretary of State with the authority to adopt rules necessary to administer subchapter D of Chapter 9, Texas Business and Commerce Code, subchapter A of Chapter 35, Miscellaneous, chapter 14, Uniform Federal Lien Registration Act, subtitle H of Title 5, Texas Agriculture Code, subtitle E of Title 6, Texas Agriculture Code, and subchapter J of Chapter 51, Texas Government Code. No other states, articles or codes are affected by this proposal. sec.95.601. Search Requests. Search requests shall contain the following information. (1) Name searched. A search request should set forth the full legal name of a debtor or the name variant desired to be searched. The full name of an individual shall consist of a first, middle, and last name, followed by any suffix that may apply to the name. The full name of an entity shall consist of the name of the corporate body as stated on the articles of incorporation or other organic documents in the state or country of organization or the name variant desired to be searched. A search request will be processed using the name in the exact form it is submitted. (2) Requesting party. The name and address of the person to whom the search report is to be sent. (3) Fee. The minimum search fee as described in sec.95.111(c) of this title (relating to Filing Fees) should be enclosed. sec.95.602. Optional Information. A UCC search request may contain any of the following information. (1) A request that copies of documents referred to in the report be included with the report. The request may limit the copies requested by limiting them to the city of the debtor, the date of filing or the identity of the secured party(ies) of record on the financing statements located by the related search. (2) A request that the search of a debtor name be limited to debtors in a particular city. A report created by the filing officer in response to such a request shall contain the following statement: "A search limited to a particular city may not reveal all filings against the debtor searched and the searcher bears the risk of relying on such a search." (3) Instructions on the mode of delivery requested, if other than by ordinary mail, will be honored if the requested mode is made available by the filing office. sec.95.603. Rules Applied to Search Requests. Search results are created by applying standardized search logic to the name presented to the filing officer by the person requesting the search. Human judgment does not play a role in determining the results of the search. The following, and only the following rules are applied to conduct searches. (1) There is no limit to the number of matches that may be returned in response to the search criteria. (2) No distinction is made between upper and lower case letters. (3) Punctuation marks are disregarded. (4) Words and abbreviations that indicate the existence or nature of an entity are disregarded (e.g., company, limited, incorporated, corporation, limited partnership, limited liability company or abbreviations of the foregoing). (5) The word "the" at the beginning of the search criteria is disregarded. (6) After taking the preceding rules into account to modify the name of the debtor requested to be searched and to modify the names of debtors contained in active financing statements in the UCC information management system, the search will reveal only names of active debtors that, as modified, exactly match the name requested, as modified. sec.95.604. Search Responses. Reports created in response to a search request shall include the following. (1) Filing officer. Identification of the filing officer and the certification of the filing officer required by the UCC. (2) Report date. The date the report was generated. (3) Name searched. Identification of the name searched. (4) Certification date. The certification date applicable to the report; i.e., the date through the search is effective to reveal all relevant UCC documents filed on or prior to that date. (5) Identification of original financing statements. Identification of each active original financing statement filed on or prior to the certification date corresponding to the search criteria, by name of debtor, by identification number, and by file date and file time. (6) History of financing statement. For each original financing statement on the report, a listing of UCC documents filed by the filing officer on or prior to the certification date that include identification of the original financing statement, with the identification number, and file date and time of the documents. (7) Copies. Copies of all UCC documents revealed by the search and requested by the searcher. sec.95.605. Supplemental Responses. (a) In addition to the report described in sec.95.604 of this title (relating to Search Responses), the filing office may send a report of supplemental responses, clearly labeled as supplemental, identifying the names of debtors and identification of original financing statements for which a debtor name is similar to the name requested to be searched. Upon receipt of supplemental search responses requestor may submit a follow-up request for specific supplemental filings. (b) The filing office publishes a search methodology guide that prescribes in further detail the use of the supplemental search logic in the UCC filing system. The guide is available upon request made in writing to the filing office at its mailing address set forth above. 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 July 27, 1998. TRD-9811839 Clark Kent Ervin Assistant Secretary of State Office of the Secretary of State Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-5701 SUBCHAPTER H. Other Notices of Liens 1 TAC sec.sec.95.700-95.706 The new sections are proposed under sec.sec.9.401-9.412 Texas Business and Commerce Code, sec.sec.35.01-35.09 Texas Business and Commerce Code, sec.sec.14.001-14.007 Texas Property Code, sec.sec.128, Texas Agriculture Code, sec.sec.188, Texas Agriculture Code, sec.sec.42.21 Texas Code of Criminal Procedure, and sec.sec.51.901-51.905 Texas Government Code which provides the Secretary of State with the authority to adopt rules necessary to administer subchapter D of Chapter 9, Texas Business and Commerce Code, subchapter A of Chapter 35, Miscellaneous, chapter 14, Uniform Federal Lien Registration Act, subtitle H of Title 5, Texas Agriculture Code, subtitle E of Title 6, Texas Agriculture Code, and subchapter J of Chapter 51, Texas Government Code. No other states, articles or codes are affected by this proposal. sec.95.700. Policy Statement. The purpose of rules in this section is to describe records of liens maintained by the filing office created pursuant to statutes other than the UCC that are treated by the filing officer in a manner substantially similar to UCC documents and are included on request with the reports described in sec.95.604 and sec.95.605 of this title (relating to Search Responses and Supplemental Responses). sec.95.701. Notice of Federal Tax Lien. (a) Filing. Notices of federal liens such as federal tax liens, environmental, and pension will be accepted for filing as defined in Chapter 14, Texas Property Code. Notices of federal liens are filed and indexed within the UCC filing system. Notices of federal liens such as notices of discharge, release, and refiling are filed as though they were financing statement changes and must include identification of the original file number (as defined in sec.95.101(8) of this title (relating to Definitions)). A separate notice or certificate form is submitted for each federal lien. A change to a federal lien shall be refused if the document's identification of the original lien does not correspond to the identification number and filing date of a federal lien then active in the UCC information management system. (1) Where to file. Notices of liens, certificates, and other notices affecting federal tax liens or other federal liens are filed with the filing office pursuant to Chapter 14.002, Texas Property Code. (2) Fee. The required fee for filing and indexing each notice of lien or certificate or notice affecting is pursuant to Chapter 14.005, Texas Property Code. (3) Duration. The notice is effective until a certificate of release, nonattachment, discharge, or subordination is filed with the filing office pursuant to Chapter 14.004, Texas Property Code. (b) Mechanics of search. Search requests and reports are conducted pursuant to Chapter 14.004, Texas Property Code and as described in sec.sec.95.601-95.605 of this title (relating to Search Requests and Reports). (c) Fee for search. The required fee for information from the filing office is pursuant to Chapter 14.004, Texas Property Code and as described in sec.sec.95.111 - 95.112 of this title (relating to General Provisions). sec.95.702. Notice of Utility Security Instrument. (a) Filing. Utility security instruments and notices of name change, merger or consolidation will be accepted for filing as defined in Chapter 35, Texas Business and Commerce Code. Utility security instruments are filed and indexed within the UCC filing system. Notices of name change, merger or consolidation are filed as though they were financing statement changes and must include identification of the original file number (as defined in sec.95.101(8) of this title (relating to Definitions)). A separate notice is submitted for each utility security instrument. A change to a utility security instrument shall be refused if the document's identification of the original filing does not correspond to the identification number and file date of a utility security instrument then active in the UCC information management system. (1) Where to file. Utility security instruments, instruments supplementary or amendatory thereto, or a statement of name change, merger, or consolidation are filed with the filing office pursuant to Chapter 35, Texas Business and Commerce Code. (2) Fee. The required fee for filing and indexing each notice of lien or certificate or notice affecting is pursuant to Chapter 35.05, Texas Business and Commerce Code. (3) Duration. The notice is effective until the interest granted as security is released by the filing of a termination statement signed by the secured party, and no renewal, refiling, or continuation statement shall be required to continue such effectiveness pursuant to Chapter 35.03, Texas Business and Commerce Code. (b) Mechanics of search. Search requests and reports are conducted pursuant to Chapter 35.06, Texas Business and Commerce Code and as described in sec.sec.95.601-95.605 of this title (relating to Search Requests and Reports). (c) Fee for search. The required fee for information from the filing office is pursuant to Chapter 35.06, Texas Business and Commerce Code and as described in sec.sec.95.111 - 95.112 of this title (relating to General Provisions). sec.95.703. Notice of Restitution Lien. (a) Filing. Restitution liens will be accepted for filing as defined in Article 42.22, Texas Code of Criminal Procedure. Restitution liens are filed and indexed within the UCC filing system. A separate affidavit is submitted for each restitution lien. (1) Where to file. Restitution liens are filed with the filing office pursuant to Article 42.22, Sec. 7, Texas Code of Criminal Procedure. (2) Fee. The required fee for filing and indexing each notice of lien or certificate or notice affecting is pursuant to Article 42.22, Sec. 7, Texas Code of Criminal Procedure. (3) Duration. The lien expires on the 10th anniversary of the date the lien was filed or on the date the defendant satisfies the judgment creating the lien, whichever occurs first pursuant to Article 42.22, Sec. 12, Texas Code of Criminal Procedure. The lien may be refiled before the date the lien expires and will expire on the 10th anniversary of the date the lien was refiled or that the defendant satisfies the judgment creating the lien, whichever occurs first. (b) Mechanics of search. Search requests and reports are conducted as described in sec.sec.95.601-95.605 of this title (relating to Search Requests and Reports). (c) Fee for search. The required fee for information from the filing office is pursuant to sec.sec.95.111 - 95.112 of this title (relating to General Provisions). sec.95.704. Notice of Agricultural Chemical and Seed Liens. (a) Filing. Agricultural chemical and seed liens will be accepted for filing as defined in Chapter 128, Texas Agricultural Code. Agricultural chemical and seed liens are filed and indexed within the UCC filing system. A separate notice of claim of lien is submitted for each agricultural chemical and seed lien. (1) Where to file. Agricultural chemical and seed liens are filed with the filing office pursuant to Chapter 128.016, Texas Agriculture Code. (2) Fee. The required fee for filing and indexing each notice of claim of lien is pursuant to Chapter 128.016, Texas Agriculture Code. (3) Duration. The notice of claim of lien is effective until the lien is satisfied pursuant to Chapter 128.011, Texas Agriculture Code. The lien may be terminated pursuant to Chapter 128.038, Texas Agriculture Code. (b) Mechanics of search. Search requests and reports are conducted as described in sec.sec.95.601-95.605 of this title (relating to Search Requests and Reports). (c) Fee for search. The required fee for information from the filing office is pursuant to Chapter 128.031, Texas Agriculture Code and sec.sec.95.111 - 95.112 of this title (relating to General Provisions). sec.95.705. Notice of Liens for Animal Feed. (a) Filing. Animal feed liens will be accepted for filing as defined in Chapter 188, Texas Agricultural Code. Animal feed liens are filed and indexed within the UCC filing system. A separate notice of claim of lien is submitted for each animal feed lien. (1) Where to file. Animal feed liens are filed with the filing office pursuant to Chapter 188.016, Texas Agriculture Code. (2) Fee. The required fee for filing and indexing each notice of claim of lien is pursuant to Chapter 188.016, Texas Agriculture Code. (3) Duration. The notice of claim of lien is effective until the lien is satisfied pursuant to Chapter 188.011, Texas Agriculture Code. The lien may be terminated pursuant to Chapter 188.038, Texas Agriculture Code. (b) Mechanics of search. Search requests and reports are conducted as described in sec.sec.95.601-95.605 of this title (relating to Search Requests and Reports). (c) Fee for search. The required fee for information from the filing office is pursuant to Chapter 188.031, Texas Agriculture Code and sec.sec.95.111 - 95.112 (relating to General Provisions). sec.95.706. Notice of Judicial Finding of Fact. (a) Filing. Notice of judicial finding of fact documents will be accepted for filing as defined in Subchapter J, Sections 51.901-51.905, Texas Government Code. Judicial finding of fact documents are filed and indexed within the UCC filing system. A separate affidavit is submitted for each judicial finding of fact. (1) Where to file. Judicial findings of fact are filed with the filing office pursuant to Section 51.905, Texas Government Code. (2) Fee. The required fee for filing and indexing each notice of lien or certificate or notice affecting is pursuant to Section 51.905, Texas Government Code. (b) Mechanics of search. Search requests and reports are conducted as described in sec.sec.95.601-95.605 of this title (relating to Search Requests and Reports). (c) Fee for search. The required fee for information from the filing office is pursuant to sec.sec.95.111 - 95.112 of this title (relating to General Provisions). 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 July 27, 1998. TRD-9811840 Clark Kent Ervin Assistant Secretary of State Office of the Secretary of State Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-5701 SUBCHAPTER I. Rulemaking Procedure 1 TAC sec.sec.95.800-95.803 The repeals and new sections are proposed under sec.sec.9.401-9.412 Texas Business and Commerce Code, sec.sec.35.01-35.09 Texas Business and Commerce Code, sec.sec.14.001-14.007 Texas Property Code, sec.sec.128, Texas Agriculture Code, sec.sec.188, Texas Agriculture Code, sec.sec.42.21 Texas Code of Criminal Procedure, and sec.sec.51.901-51.905 Texas Government Code which provides the Secretary of State with the authority to adopt rules necessary to administer subchapter D of Chapter 9, Texas Business and Commerce Code, subchapter A of Chapter 35, Miscellaneous, chapter 14, Uniform Federal Lien Registration Act, subtitle H of Title 5, Texas Agriculture Code, subtitle E of Title 6, Texas Agriculture Code, and subchapter J of Chapter 51, Texas Government Code. No other states, articles or codes are affected by this proposal. sec.95.800. Policy Statement. When taking action affecting the rights of the public, the filing officer shall, in addition to other requirements imposed by the constitution or by statute, do all of the following. (1) The filing officer shall adopt rules describing the mission of the filing office, describing the general course and method of operations, and describing the methods by which the public may obtain information or make submissions or requests. (2) The filing officer shall adopt rules of practice describing the nature and requirements of all formal and informal procedures available to the public, including a description of forms that may be used to file UCC documents and to request UCC searches. (3) The filing officer shall make available for public inspection all rules, and make available for public inspection and index by subject, all other written statements of law or policy, or interpretations formulated, adopted or used in the administration of the UCC. sec.95.801. Procedure for Adoption of Rules. Prior to the adoption, amendment, or repeal of a rule, the filing officer shall comply with the Administrative Procedure Act, Chapter 2001, Texas Government Code. sec.95.802. Authority to Adopt Rules. Rules on the administration of the UCC are adopted pursuant to section 9.411, Texas Business and Commerce Code. sec.95.803. Implementation. Rules on the administration of the UCC are intended to implement Chapter 9, Subchapter D. Filing, Texas Business and Commerce Code. 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 July 27, 1998. TRD-9811841 Clark Kent Ervin Assistant Secretary of State Office of the Secretary of State Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-5701 PART VII. State Office of Administrative Hearings CHAPTER 163. Arbitration Procedures for Certain Enforcement Actions of the Department of Human Resources 1 TAC sec.sec.163.3, 163.11, 163.15, 163.19, 163.21, 163.23, 163.25, 163.43, 163.55, 163.61, 163.67 The State Office of Administrative Hearings (SOAH) proposes amendments to sec.sec.163.3, 163.11, 163.15, 163.19, 163.21, 163.23, 163.25, 163.43, 163.55, 163.61, and 163.67, concerning arbitration procedures which may be elected for certain enforcement actions prosecuted by the Department of Human Services. SOAH proposes these amendments to provide for the efficient and effective operation of this program, implementing practical lessons learned since the original adoption and subsequent use of the rules, and in order to bring the rules into conformity with legislative amendments adopted last session. These proposed amendments describe types of cases excluded from the arbitration process by legislative amendments, articulate some additional requirements regarding who may be appointed as an arbitrator and give the chief judge some additional flexibility to certify individuals as qualified to serve as arbitrators based on individualized training and program need, allocate responsibility for costs of the proceedings in accord with legislative amendments, provide for recordings of prehearing conferences to be made at the arbitrator's request, provide that discovery requests should only be filed at SOAH if there is a related dispute, provide for the closing of the hearing with the filing of any briefs requested by the arbitrator, and provide for limited appeal by the department in accord with legislative amendments. Shelia Bailey Taylor, chief administrative law judge, has determined that for the first five-year period that the amendments are in effect, there will be no fiscal implications for state or local government as a result of the amendments. Judge Taylor also has determined that for each year of the first five years, the amendments are in effect, the public benefit anticipated as a result will be the more efficient administration of arbitration proceedings elected under these rules. There will be no effect on small businesses or anticipated increase in economic cost to individuals who are required to comply. Any such effects are the result of the underlying legislative amendments and are not altered by these rules. Comments on the proposed amendments must be submitted within 30 days after publication of the proposed sections in the Texas Register to Debra Anderson, Legal Assistant, State Office of Administrative Hearings, P.O. Box 13025, Austin, Texas 78711-3025 or by facsimile to (512) 463-7527. An additional copy should be submitted to Nancy N. Lynch, ALJ / Alternative Dispute Resolution Coordinator, State Office of Administrative Hearings, P.O. Box 13025, Austin, Texas 78711-3025 or by facsimile to (512) 475-4994. The amendments are proposed under Health and Safety Code, Subchapter H, Chapter 242, sec.242.253, which requires that the State Office of Administrative Hearings adopt rules governing the appointment of an arbitrator and the process of arbitration under that chapter; and under Government Code, Chapter 2001, sec.2001.004 which requires agencies to adopt rules of practice setting forth the nature and requirements of formal and informal procedures. Code sections affected by these amendments are Health and Safety Code, Chapter 242; the Government Code, Chapter 2003; and the Human Resources Code, Chapter 32, sec.32.021(k). sec.163.3. Election of Arbitration. The department or any affected facility may elect binding arbitration as an alternative in any of the following disputes unless the United States Health Care Financing Administration requires that such dispute be resolved by the federal government. (1) (No change.) (2) Arbitration cannot be elected if the subject matter of the dispute is part of the basis for
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      [in situations where the department is seeking an emergency suspension or a closing order issued under Health and Safety Code, sec.242.062.] (A)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        revocation, denial, or suspension of an institution's license;
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          (B)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            issuance of a closing order under Health and Safety Code sec.242.062; or
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              (C)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                suspension of admissions under Health and Safety Code sec.242.072.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  (3)-(5) (No change.) (6) The notice of election shall include a written statement that contains: (A)-(F) (No change.) (G)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    the name, title, address, and telephone number of a designated contact person for the party who will be paying the costs of the arbitration.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      (7) The election of arbitration is a representation that the party choosing arbitration is solvent and able to bear the costs of the proceeding.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        [An election to engage in arbitration under this subchapter is irrevocable and binding on the facility and the department. However, such an election does not preclude the parties from reaching an agreed resolution of a dispute that has been submitted for arbitration at any time during the arbitration process before the final order has been issued by the arbitrator.] (8)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          An election to engage in arbitration under this subchapter is irrevocable and binding on the facility and the department. However, such an election does not preclude the parties from reaching an agreed resolution of a dispute that has been submitted for arbitration at any time during the arbitration process before the final order has been issued by the arbitrator.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            sec.163.11. Selection of Arbitrator. (a) A master list of potential arbitrators will be maintained by SOAH and updated as deemed appropriate by the chief judge
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              [at least once a year]. The master list will be made up of individuals who have been determined by the chief judge to be qualified under sec.163.19 of this title (relating to Qualifications of Arbitrators). This list will be available to the public upon request to SOAH. (b)-(c) (No change.) (d) SOAH shall send each party an identical list of five or six
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                persons qualified to serve as an arbitrator in the dispute within ten days after receipt of the answering statement by SOAH, or in any event no later than 15 days after the initial claim is received by SOAH. (e) Any objections for cause pertaining to any name on the list shall be made in writing directed to the chief judge at SOAH within three days, with a copy served on all other parties. Such objections will be reviewed by the chief judge or his or her
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  designee and acted upon within five days after the objection is received. (f)-(h) (No change.) sec.163.15. Disclosure Requirements and Challenge Procedure. (a) Any person appointed to the master list of potential arbitrators shall file a disclosure statement with SOAH describing any circumstances likely to affect impartiality, including any bias or any financial or personal interest in or representation of health care facilities or the department, or any past (within the last three years) or present relationship with a facility or with the department or its employees. This disclosure statement must be updated as circumstances change[, and in any event at least once annually] in order to maintain eligibility for appointment as an arbitrator under this chapter. (b)-(d) (No change.) sec.163.19. Qualifications of Arbitrators. The chief judge shall designate persons qualified to serve as an arbitrator under this chapter and that designation shall be conclusive. Potential arbitrators shall meet the following minimum standards: (1)-(3) (No change.) (4) Completion of a training course offered under the joint auspices of the department, SOAH, [and] representatives of the facilities , and of the community to be served by the facilities
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    . (A) (No change.) (B) The course must[:] [(i)] be offered as often as determined appropriate by the chief judge.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      [at least once a year; and] [(ii) be initially offered in January 1996.] (5) Candidates selected for participation in the training program will be chosen based on resumes, letters of reference, and applications submitted to the chief judge.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        [The chief judge can remove persons from the master list if he determines that they no longer meet the qualifications listed in this section. The determination of the chief judge in this matter is conclusive.] (A)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Applications must be submitted on forms prepared by, or in a format prescribed by, SOAH.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            (B)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              All materials must be received by the chief judge at least 30 days before the date of the upcoming training.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                (C)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  The number of persons chosen to participate in the training program and serve on the master list of arbitrators may be limited to enhance the opportunity to develop expertise, to ensure high quality results; and to maximize the efficiency of the program.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (6)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      SOAH ALJs may be certified by the chief judge as qualified to serve as arbitrators without necessity of filing the reference letters referred to in paragraph (6) of this section or having completed the training course described in paragraph (4) of this section. Any ALJs so designated will receive individualized training in the topics described in paragraph (4) of this section.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (7)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          In order to be eligible to serve as an arbitrator, a person may not have represented any client in any matter pending before SOAH during the six month period preceding the appointment, may not represent anyone before SOAH during the pendency of the contract to serve as an arbitrator for SOAH, and may not represent anyone before SOAH for six months following the conclusion of his/her contract to serve as an arbitrator for SOAH.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            (8)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              In order to be eligible to serve as an arbitrator, a person may not represent any plaintiff in a proceeding seeking monetary damages from the State of Texas or any of its agencies, and he/she must affirm that he/she will not undertake any such representation during the pendency of the contract to serve as an arbitrator for the Office.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                (9)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  The chief judge can remove persons from the master list if she/he determines that they no longer meet the qualifications listed in this section. The determination of the chief judge in this matter is conclusive.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    sec.163.21. Costs of Arbitration. (a)-(b) (No change.) (c)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      In cases where arbitration is elected for actions occurring after January 1, 1998, the party that elects arbitration shall pay the cost of the arbitration. Payment of the costs of the arbitration must be current before the arbitrator's order is issued.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        sec.163.23. Stenographic Record. Any party desiring a stenographic record shall make arrangements directly with a stenographer and shall notify the other parties of these arrangements in advance of the hearing. The requesting party or parties shall pay the cost of the record. If the transcript is agreed by the parties to be, or determined by the arbitrator to be, the official record of the proceeding, it must be made available [to the arbitrator and] to the other parties for inspection, at a date, time, and place to be determined by the arbitrator, and a copy shall be provided to the arbitrator without charge
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          . sec.163.25.Electronic Record. The department shall make an electronic recording of the proceeding. If there is no stenographic record of the proceeding, the original recording or a copy will be provided to the arbitrator at the close of the proceeding if the arbitrator so requests. At the arbitrator's request, the department shall also record the prehearing conferences.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            sec.163.43. Discovery. (a)-(c) (No change.) (d)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Requests for discovery should not be filed with SOAH or the arbitrators unless there is a related dispute which must be resolved by the arbitrator.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                sec.163.55. Order of Proceedings. (a)-(d) (No change.) (e) The parties may make closing statements as they desire, but the record may not remain open for written briefs unless requested by the arbitrator. If the arbitrator requests briefs, the arbitration hearing shall be deemed "closed" on the date that the last requested brief is filed.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  sec.163.61. Order. (a) (No change.) (b) The order shall be entered no later than the 60th day after the close
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    [last day] of the arbitration hearing. (c)-(e) (No change.) sec.163.67. Appeal. (a)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      In arbitrations where the department has elected arbitration, the facility may appeal to district court as provided by Health and Safety Code, sec.242.267. (b)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        In arbitrations where the facility requested the arbitration, the department may appeal to district court as provided by Health and Safety Code, sec.242.267.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          The Agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Filed with the Office of the Secretary of State on July 24, 1998. TRD-9811783 Amalija J. Hodgins Deputy Chief Administrative Law Judge State Office of Administrative Hearings Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 475-4993 TITLE 16. ECONOMIC REGULATION PART II. Public Utility Commission of Texas CHAPTER 25.Substantive Rules Applicable to Electric Service Providers SUBCHAPTER J.Costs, Rates and Tariffs 16 TAC sec.25.251 The Public Utility Commission of Texas proposes new sec.25.251, relating to Renewable Energy Tariff. Section 25.251 allows electric utilities to offer their customers the option to purchase energy generated from renewable resources, priced at the level that covers the cost of acquiring the renewable energy. Project Number 19087 has been assigned to this proceeding. In proposing this rule, the commission's objective is to allow utilities to provide their customers with the opportunity to purchase renewable resources, thereby: (1) furthering the statutory mandate found in the Public Utility Regulatory Act, Texas Utility Code Annotated, sec.34.005 (Vernon 1998) (PURA) to promote the development of renewable energy technologies; (2) responding to recently conducted Deliberative PollsTM which indicate that a significant proportion of customers place a high value on environmental quality in their respective communities and are willing to pay a higher price for "clean" energy acquired from non-polluting renewable resources; and (3) increasing the relative use of renewable energy to supply electricity to consumers in Texas. The commission requests that interested parties provide relevant comments on the proposed rule. Specifically, the commission requests comments on the following: First, the commission seeks comment on the appropriate cost level and cost recovery method for program marketing, administrative, and education costs. What level of marketing (including advertising) and administrative costs will be reasonable and appropriate to build program participation in the start-up phase of the program? As to marketing and administrative costs, should utilities be allowed to recover a percentage greater than the proposed 20% during the program's first year to cover start-up costs? Is it necessary to allow high marketing and administrative expenditures for start-up beyond one year after the tariff is adopted; if so, how long should the start-up period be for marketing cost recovery purposes? Past the start-up period, what level of marketing and administrative costs is reasonable (in percentage terms) over the long term? Also, is it appropriate for marketing and administrative costs to be recoverable via the tariffed rate for renewable energy or via base rates? As to education costs, should the cost level be limited? Is it appropriate for education costs to be recoverable from all customers as part of the utility's promotion expense? Second, the commission seeks comments on whether educational materials should be developed in conjunction with an independent third party, or instead be subject to commission review. Third, the commission seeks comment on the resources that may be included in a renewable energy tariff. To what extent should the commission allow utilities to offer existing resources or bundle existing renewable resources with new renewable resources under the rule? Fourth, since the rule intends that participating utilities acquire renewable energy to meet customers' demands by purchasing such energy from third party providers, rather than by building new, rate-based resources, is it necessary that the rule address the nature of such contracts? How should the rule balance between the renewable providers' need for contract certainty to assure project financing, the utilities' need to avoid creating new strandable costs (as from new long-term energy supply contracts), and the commission's desire to avoid intruding excessively into the operations of a growing renewables marketplace? Fifth, what is the appropriate geographic definition of qualifying renewable energy resources for this rule? Sixth, since energy efficiency is a cost-effective means to reduce air emission impacts of electricity use and improve fuel diversity, should this rule be expanded to allow utilities to package energy efficiency with renewables in the tariff offering? If so, how could this be done most constructively for both utilities and electricity customers? Seventh, is it necessary to establish standards or minimum levels of tariff participation, either in terms of customer participation rates or kWh sales of renewable energy? If some participation standards are needed, explain why and what specific standards would be most appropriate to measure utility accomplishment of underlying goals of this tariff. Last, the commission solicits comments about how interested nonprofit organizations can participate in education and marketing efforts, thereby enhancing the success of the renewable energy program. Tammy Cooper, senior attorney, Office of Policy Development, has determined that for the first five-year period the section is in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering this section. Ms. Cooper also has determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of enforcing this section will be an increase in the amount of renewable energy technology in Texas. This increase in renewable energy technology will have environmental benefits to all citizens of the state and will also promote economic development and employment opportunities. There is an anticipated economic cost to persons who are required to comply with the section as proposed. The costs incurred are likely to vary from utility to utility, and are difficult to ascertain. The benefits to utility customers, participating utilities, and Texas' environment accruing from implementation of this rule, however, are expected to outweigh the costs. For each year of the first five years the section is in effect, there will be no effect on small businesses as a result of enforcing the proposed section. Ms. Cooper has further determined that for the first five years the proposed section is in effect, there may be a favorable impact on the opportunities for employment in the geographic areas of Texas affected by implementing the requirements of the rule, but the magnitude of the impact cannot be ascertained. Comments on the proposed rule (16 copies) may be submitted to Filing Clerk, Public Utility Commission of Texas, 1701 N. Congress Avenue, P.O. Box 13326, Austin, Texas, 78701-3326, within 30 days after publication. Reply comments may be submitted within 45 days after publication. All comments should refer to Project Number 19087. The commission invites specific comments regarding the costs associated with, and benefits that will be gained by, implementation of this section. The commission will consider the costs and benefits in deciding whether to adopt this section. The commission staff will conduct a public hearing on this rulemaking under Government Code, sec.2001.029 at the commission's offices on Monday, September 28 1998, at 9:00 a.m. This section is proposed under the Public Utility Regulatory Act, Texas Utilities Code Annotated (Vernon 1998) (PURA), sec.sec.14.001, 14.002, 34.005, 34.151(b), and 34.171(2). Section 14.001 grants the commission the general power to regulate and supervise the business of each utility within its jurisdiction. Section 14.002 provides the commission with the authority to make and enforce rules reasonably required in the exercise of its powers and jurisdiction. Section 34.005 directs the commission to adopt rules consistent with the integrated resource planning process to promote the development of renewable energy technologies. Section 34.151(b) directs that an electric utility may add new or incremental resources outside the solicitation process, including renewable resources. Section 34.171(2) allows the commission to authorize additional incentives for conservation, load management, purchased power, and renewable resources. Cross Index to Statutes: Public Utility Regulatory Act sec.sec.11.002(a),14.001,14.002, 34.005, 34.151(b), and 34.171(2). sec.25.251.Renewable Energy Tariff. (a) Purpose. This section allows electric utilities to offer a renewable energy tariff to all retail customers. The purpose of the renewable energy tariff is to use market- based methods to promote the use of renewable energy technologies to supply electricity to Texas, to protect and enhance the quality of Texas' environment, and to respond to customers' expressed preferences for renewable resources. (b) Application. This section applies to electric utilities as defined in PURA sec.31.002(1) choosing to offer a tariff under this section. (c) Definitions. (1) Renewable energy - Energy derived from renewable energy technologies as defined in sec.23.3 of this title (relating to Definitions). (2) Renewable energy price - The charge customers pay for renewable energy under this tariff. (3) New resources - Renewable resources placed in service after the effective date of this rule. (4) Existing renewable resources - Renewable resources that are in operation on the effective date of this rule. (d) Eligible renewable resources. Except where specifically noted, renewable resources that are acceptable under this tariff shall meet the following requirements: (1) New resources. A new resource eligible under this tariff is one whose costs have not been placed in any utility's rates. (2) Existing resources. An existing resource eligible under this tariff is one whose costs have not been placed in any utility's rates. (3) Location. A renewable resource must be located within the State of Texas or in a contiguous state. (4) Affiliated purchases. Any renewable resources obtained from an affiliate of the regulated utility must be secured through an arm's-length, competitive solicitation. (e) Renewable energy tariff requirements. All electric utilities choosing to offer a renewable resource tariff under this section shall submit for commission review and approval a tariff that implements the provisions of this section within 180 days of the effective date of this rule. Each tariff submitted shall, at a minimum, contain the following provisions: (1) Definitions. This section shall define all relevant terms and concepts in a manner that is simple and easy to understand. (2) Rates and charges. This section shall clearly identify the charges that the participants will incur for participating at various levels in the program. The tariff shall allow participation at a variety of monthly costs or energy demand volume levels and will clearly state how much renewable energy a given monthly charge will buy, or alternatively, the cost to buy a given number of kWh from a renewable resource. (A) Kilowatt-hour (kWh) charge. This charge would be applicable to part or all of the renewable energy purchased by the participant. (B) Flat fee charge. This charge would correspond to specific "blocks" of renewable energy and/or capacity purchased by the participant. (C) Other methods. A utility may propose other methods of program implementation subject to commission approval. (3) Offset savings. Each tariff shall specifically indicate that: (A) The additional cost of renewable energy will be partially offset by fuel savings, operations and maintenance savings, and any current and future expenses that are avoided by the displacement of fossil- or nuclear-fueled generation by renewables. (B) The energy purchased by participants under this tariff will not be subject to fuel price escalation. (f) Tariff attributes and operation. A renewable energy tariff enables a utility's customers to receive all or part of their energy needs from renewable energy resources. All tariffs filed shall contain the following attributes: (1) All retail customers shall be given the opportunity to purchase all or a portion of their energy requirements under this tariff. (2) The renewable energy price must be cost-based. The relationship between the renewable energy price and the cost of the acquired resource must be demonstrated in the utility's initial tariff-filing package. The price must be net of relevant savings for fuel, operations and maintenance, and any current and future expenses that the utility avoids because the renewable energy displaces other generation. (3) No utility may sell renewable energy under this tariff until it has renewable energy under contract. New resources shall be deployed in a timely manner (i.e., within 24 months of tariff approval) and shall correspond with the program's customer participation rate. (4) A utility may use existing renewable resources to fill the gap between available new renewables and renewables demanded under the tariff. . (g) Marketing. Each utility shall market the tariff to all customers and include its marketing plan with its initial tariff filing package. Marketing materials shall target all customers at all income levels, and provide all customers with clear information regarding how they may obtain the product(s). (h) Accountability. Each utility shall prepare an annual report to renewable energy tariff subscribers on the status of the program and use of funds. The annual reports will allow customers to review the benefits they have received as a result of the costs they have voluntarily incurred to buy renewable energy under the tariff. (1) Contents. A utility's annual report shall include the following information, organized to clearly convey the information to tariff subscribers and other interested customers: (A) The number of program participants and the number as a percentage of total customers. (B) The total revenues collected through the renewable energy tariff, total expenditures under the tariff, and a summary accounting of how renewable energy tariff revenues were spent for the calendar year (including energy and/or capacity purchases, offset savings, marketing, and program administration and management). (C) The amount of renewable energy sold to subscribers under the tariff (in total kWh, and as a percentage of total sales); and the amount of new renewable resources acquired (in installed kW). (D) The unit cost of the new renewable resource acquisition (by renewable technology if appropriate), and how it compares to benchmark prices for the utility's current resource mix and to new non-renewable resources. (E) The location, technology and providers of new and existing renewable energy provided to customers under the tariff. (F) The amount of generation-related air emissions that have been displaced as a result of the program. (G) If non-contract resources are installed as local demonstration or education projects (e.g., school photovoltaic installations) to support either the renewable energy tariff or the education program, the number, locations, technology, cost, capacity and energy provided by those installations. (2) This annual report shall be sent to the commission and to news media outlets within the utility's service territory within 90 days of each anniversary of tariff approval. (i) Tariff approval process. The commission will review and approve or deny each utility's tariff filed under this section within 90 days of tariff submittal. It will consider the following matters in its review: (1) Incremental cost analysis. Each utility shall file supporting analysis showing that the proposed renewable energy price is no greater than the amount by which long-term incremental cost of electricity from renewable sources exceeds the cost of providing the same electricity with non-renewable sources. (2) Program marketing and administrative costs analysis. Each utility shall develop a marketing plan for its renewable energy tariff that explains how the utility will publicize, market, and advertise the tariff. The plan shall include the schedule of renewable energy prices, and itemized costs to execute the marketing plan. (3) Relevant assumptions. Each utility shall explain all relevant assumptions, including the cost of non-renewable electric resources. (4) Resource procurement plan. The utility shall explain how it intends to secure the renewable energy needed to meet its projected customer demands for the first two years the tariff is in effect; this material may be protected under claim of confidentiality if the utility believes it involves competitive business information. (j) Education program. Each utility shall develop educational materials in cooperation with a non-profit, third-party organization that has a demonstrated expertise in renewable energy technology applications, such as an environmental organization, a state agency, or an entity promoting civic interests. The utility shall design and implement a customer education program and provide educational materials to all of its customers on renewable resources as supply- side options and as demand- side options. Each utility shall inform its customers of the utility's generation mix and generation emissions. This information shall be comprehensible and succinct. Customer educational materials shall be sent to customers during the initial tariff offering in conjunction with the initial renewable energy marketing materials, and shall be distributed at least annually. (k) Criteria for educational materials. (1) Educational materials shall not be used to promote the utility or any of its other service offerings in any way. (2) Educational materials should include information on renewable energy technology applications as defined in sec.23.3 of this title as well as information regarding the potential for renewable energy technology development in the State of Texas. It should include information on renewables both for supply- and demand-side applications, including off-grid and peak-shaving uses. (3) The utility's generation mix shall be disclosed to all customers in table form as a component of the tariff's educational campaign. Disclosure statements shall indicate the utility's generation mix in percentages rounded to the nearest whole number for the previous calendar year using the following categories: coal and lignite, natural gas, nuclear fuel, renewable resource, and fuel oil and other. (4) The utility's generation emissions, including nuclear waste, shall be disclosed in total and by fuel type and shall include emissions associated with the utility's power purchases to the extent that this information is available. Disclosure statements shall indicate the utility's average monthly generation emissions or waste per average customer for each customer class and by MWh generated for the previous calendar year, based on the average emissions or nuclear waste by fuel type, for: nitrogen oxide (NOx[sub]2), carbon dioxide (CO2), particulate matter, and nuclear waste. (5) Each utility shall file these materials with the commission as part of its tariff- filing package. (l) Cost recovery. Utilities shall be allowed to recover costs incurred through the tariff in the following manner: (1) Marketing and administration costs. Program marketing and administration costs may be included within the tariffed price of renewable energy, and shall not exceed 20% of the revenues collected under the tariff in the first year and 10% in subsequent years. Prudently incurred marketing and administration costs in excess of these limits may be recoverable through base rates. (2) Education program costs. All prudently incurred costs of commission approved customer education materials and activities developed in conjunction with an independent third party shall be recoverable and allocated among all customers as part of the utility's promotion expense. (m) Commission review. The commission will periodically review each utility's renewable energy tariff and activities to ensure that new renewable energy resources are deployed in the State of Texas and that program participants are receiving appropriate benefits from participation. 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 July 24, 1998. TRD-9811729 Rhonda Dempsey Rules Coordinator Public Utility Commission of Texas Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 936-7308 TITLE 22. EXAMINING BOARDS PART XI. Board of Nurse Examiners CHAPTER 221.Advanced Practice Nurses 22 TAC sec.221.7 The Board of Nurse Examiners proposes an amendment to sec.221.7, concerning Advanced Practice Nurses, New Graduates. The amendment is being proposed to require APNs to re-educate if they have not passed the certification examination within two years of graduation or within three attempts. This amendment will cause the APN graduates to meet the same requirements for graduates of professional nursing programs who fail the initial licensure examination. The proposed amendment will allow those applicants that have been unsuccessful to reapply for APN authorization after successfully completing an accredited advanced practice nurse program of study. Katherine A. Thomas, MN, RN, executive director, has determined that there will be no fiscal implications for state or local government as a result of enforcing or administering the rule. There will be no effect on local government nor businesses to comply with the rule. Katherine A. Thomas, MN, RN, executive director, has determined that for each year of the first five years the rule as proposed will be in effect the public has increased assurance that the Board credentials qualified applicants, and serves to notify all potential students of future credentialing requirements. There may be increased cost to unsuccessful students required to comply with these rules. Written comments on the proposed amendment may be submitted to Kathy Thomas, Board of Nurse Examiners, Post Office Box 430; Austin, Texas 78767-0430. The amendment is proposed under the Nursing Practice Act, (Texas Civil Statutes, Article 4514), sec.1, which provides the Board of Nurse Examiners with the authority and power to make and enforce all rules and regulations necessary for the performance of its duties and conducting of proceedings before it and Article 4514, sec.8, which provides the Board of Nurse Examiners the authority and power to adopt rules for approval of a registered nurse to practice as an advanced practice nurse. There are no other rules, codes, or statutes that will be affected by this proposal. sec.221.7.New Graduates. A registered professional nurse who has completed advanced formal education as required by sec.221.3 of this title (relating to Education) and registered for the first available board approved national certification examination within two years of graduation from the program may be issued a temporary authorization to practice as a graduate Advanced Practice Nurse pending notification of the results of the certification examination. (1) - (2) (No change.) (3)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            A candidate who fails to pass the examination after three attempts or fails to pass the exam within two years following graduation may reapply for authorization to practice as an advanced practice nurse after successfully completing an accredited advanced practice program of study that meets the requirements as outlined in guidelines prepared by the board and sec.221.3 of this title.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              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 July 24, 1998. TRD-9811723 Katherine A. Thomas, MN, RN Executive Director Board of Nurse Examiners Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 305-6811 PART XXII. Texas State Board of Public Accountancy CHAPTER 501.Professional Conduct SUBCHAPTER E.Other Responsibilities and Practices 22 TAC sec.501.41 The Texas State Board of Public Accountancy (Board) proposes an amendment to sec.501.41, concerning Discreditable Acts. The proposed amendment to sec.501.41 will add breach of an Agreed Consent Order or a Board Order to discreditable Acts. William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment will be in effect: A. the additional estimated cost to the state and to local governments expected as a result of enforcing or administering the amendment will be zero because the amendment does not require or cause the state or local governments to do anything and; B. the estimated reductions in costs to the state and to local governments as a result of enforcing or administering the amendment will be none and; C. the estimated loss or increase in revenue to the state or to local governments as a result of enforcing or administering the amendment will be none. Mr. Treacy has determined that for the first five-year period the amendment is in effect the public benefits expected as a result of adoption of the proposed amendment will be a clear understanding that the Board expects its Agreed Consent Orders and Board Orders to be complied with and that there will be disciplinary action for non-compliance. The probable economic cost to persons required to comply with the amendment will be zero because there should already be compliance with Agreed Consent Orders and Board Orders. Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy. The Board requests comments on the proposed amendment from any interested person. Comments must be received at the Board no later than noon on September 17, 1998. Comments should be addressed to Amanda G. Birrell, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe, Tower III, Suite 900, Austin, Texas 78701 or faxed to her attention at (512) 305-7854. Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses. The proposed amendment does not require any action other than compliance with Board Orders. The Board specifically invites the comments of the public on the issues of whether or not the proposed amendment will have an adverse economic effect on small business; if the amendment is believed to have such an effect, how the Board could legally and feasibly reduce that effect considering the purpose of the statute under which the amendment is to be adopted; and if the amendment is believed to have such an effect, how the cost of compliance for a small business compares with the cost of compliance for the largest business affected by the amendment under any of the following standards: (a) cost per employee; (b) cost for each hour of labor; or (c) cost for each $100 of sales. See Texas Government Code, sec.2006.002(c) The amendment is proposed under the Public Accountancy Act, Texas Revised Civil Statutes Annotated, Article 41a-1, sec.6(a) (Vernon Supp. 1998), which authorizes the Board to adopt rules deemed necessary or advisable to effectuate the Act. No other statute, code or article is affected by this proposed amendment. sec.501.41.Discreditable Acts. A certificate or registration holder shall not commit any act that reflects adversely on his fitness to engage in the practice of public accountancy. A discreditable act includes but is not limited to: (1)-(18) (No change.) (19)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                breaching the terms of an agreed consent order entered by the Board or violating any Board Order.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  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 July 24, 1998. TRD-9811752 William Treacy Executive Director Texas State Board of Public Accountancy Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 305-7848 CHAPTER 511.Certification as a CPA SUBCHAPTER D.CPA Examination 22 TAC sec.511.73 (Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas State Board of Public Accountancy or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Texas State Board of Public Accountancy (Board) proposes a repeal of sec.511.73, concerning IQEX Uniform Examination - Subjects. The proposed repeal of sec. 511.73 eliminates a rule concerning an examination that the Board no longer gives. William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed rule will be in effect: A. the additional estimated cost to the state and to local governments expected as a result of enforcing or administering the rule will be zero because the rule does not require or cause any actions on the part of state or local government and; B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the rule will be none, and; C. the estimated loss or increase in revenue to the state or to local governments as a result of enforcing or administering the rule will be none. Mr. Treacy has determined that for the first five-year period the rule is in effect the public benefits expected as a result of adoption of the proposed repeal will be none. The probable economic cost to persons required to comply with the repeal will be none. Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed repeal will not affect a local economy. The Board requests comments on the proposed repeal from any interested person. Comments must be received at the Board no later than noon on September 17, 1998. Comments should be addressed to Amanda G. Birrell, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe, Tower III, Suite 900, Austin, Texas 78701 or faxed to her attention at (512) 305-7854. Mr. Treacy has determined that the proposed repeal will not have an adverse economic effect on small businesses because the repeal of this rule will not have any economic effect. The Board specifically invites the comments of the public on the issues of whether or not the proposed repeal will have an adverse economic effect on small business; if the repeal is believed to have such an effect, how the Board could legally and feasibly reduce that effect considering the purpose of the statute under which the repeal is to be adopted; and if the repeal is believed to have such an effect, how the cost of compliance for a small business compares with the cost of compliance for the largest business affected by the repeal under any of the following standards: (a) cost per employee; (b) cost for each hour of labor; or (c) cost for each $100 of sales. See Texas Government Code, sec.2006.002(c) The repeal is proposed under the Public Accountancy Act, Texas Revised Civil Statutes Annotated, Article 41a-1, sec.6(a) (Vernon Supp. 1998), which authorizes the Board to adopt rules deemed necessary or advisable to effectuate the Act. No other statute, code or article is affected by this proposed repeal. sec.511.73.IQEX Uniform Examination - Subjects. 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 July 24, 1998. TRD-9811754 William Treacy Executive Director Texas State Board of Public Accountancy Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 305-7848 SUBCHAPTER F.Experience Requirements 22 TAC sec.511.122 The Texas State Board of Public Accountancy (Board) proposes an amendment to sec.511.122 concerning acceptable work experience. The proposed amendment to sec.511.122 will change the terminology to agree with the terminology used in the Appropriations Act. William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment will be in effect: A. the additional estimated cost to the state and to local governments expected as a result of enforcing or administering the amendment will be zero because the amendment does not require or cause any actions on the part of state or local government and; B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none, and; C. the estimated loss or increase in revenue to the state or to local governments as a result of enforcing or administering the amendment will be none. Mr. Treacy has determined that for the first five-year period the amendment is in effect the public benefits expected as a result of adoption of the proposed amendment will be that the rule uses the same terminology as the Appropriations Act. The probable economic cost to persons required to comply with the amendment will be zero because the amendment does not require or cause any actions on the part of any person. Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy. The Board requests comments on the substance and effect of the proposed amendment from any interested person. Comments must be received at the Board no later than noon on September 17, 1998. Comments should be addressed to Amanda G. Birrell, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe, Tower III, Suite 900, Austin, Texas 78701 or faxed to her attention at (512) 305-7854. Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the proposed amendment does not require any business to do or not do anything. The Board specifically invites comments from the public on the issues of whether or not the proposed amendment will have an adverse economic effect on small business; if the amendment is believed to have such an effect, then how may the Board legally and feasibly reduce that effect considering the purpose of the statute under which the amendment is to be adopted; and if the rule is believed to have such an effect, how the cost of compliance for a small business compares with the cost of compliance for the largest business affected by the amendment under any of the following standards: (a) cost per employee; (b) cost for each hour of labor; or (c) cost for each $100 of sales. See Texas Government Code, sec.2006.002(c) The proposed amendment is proposed under the Public Accountancy Act, Texas Civil Statutes, Article 41a-1, sec.6(a) (Vernon Supp. 1998), which authorizes the Board to adopt rules deemed necessary or advisable to effectuate the Act and the Appropriations Act. No other statute, code or article is affected by this proposed amendment. sec.511.122.Acceptable Work Experience. (a) (No change.) (b) All work experience, to be acceptable, shall be gained in the following categories or in any combination of these. (1)-(3) (No change.) (4) Government. All work experience gained in government shall be of a non- routine accounting nature which continually requires independent thought and judgment on important accounting matters and which meets the criteria in subparagraphs (A) - (E) of this paragraph. The board will review on a case-by- case basis experience which does not clearly meet the criteria identified in subparagraphs (A) - (E) of this paragraph. Acceptable government work experience includes: (A) employment in state government as an accountant or auditor at [a] Salary Classification B6
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    [Group 15] or above, or a comparable rating; (B)-(E) (No change.) (5)-(8) (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 July 24, 1998. TRD-9811755 William Treacy Executive Director Texas State Board of Public Accountancy Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 305-7848 CHAPTER 521.Fee Schedule 22 TAC sec.521.2 The Texas State Board of Public Accountancy (Board) proposes an amendment to sec. 521.2, concerning Examination Fees. The proposed amendment to sec. 521.2 will allow the Qualifications Division to delete reference to an examination that is no longer given. William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment will be in effect: A. the additional estimated cost to the state and to local governments expected as a result of enforcing or administering the amendment will be zero because the amendment does not require or cause any actions on the part of state or local government and; B. the estimated reduction in costs to the state and to local governments as a result of enforcing or administering the amendment will be none, and; C. the estimated loss or increase in revenue to the state or to local governments as a result of enforcing or administering the amendment will be none. Mr. Treacy has determined that for the first five-year period the amendment is in effect the public benefits expected as a result of adoption of the proposed rule will be that the Rules of the TSBPA are accurate and up to date. The probable economic cost to persons required to comply with the amendment will be none. Mr. Treacy has determined that a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy. The Board requests comments on the proposed amendment from any interested person. Comments must be received at the Board no later than noon on September 17, 1998. Comments should be addressed to Amanda G. Birrell, General Counsel, Texas State Board of Public Accountancy, 333 Guadalupe, Tower III, Suite 900, Austin, Texas 78701 or faxed to her attention at (512) 305-7854. Mr. Treacy has determined that the proposed amendment will not have an adverse economic effect on small businesses because the deletion of this provision will not have any economic effect. The Board specifically invites the comments of the public on the issues of whether or not the proposed amendment will have an adverse economic effect on small business; if the amendment is believed to have such an effect, how the Board could legally and feasibly reduce that effect considering the purpose of the statute under which the amendment is to be adopted; and if the amendment is believed to have such an effect, how the cost of compliance for a small business compares with the cost of compliance for the largest business affected by the amendment under any of the following standards: (a) cost per employee; (b) cost for each hour of labor; or (c) cost for each $100 of sales. See Texas Governmnt Code, sec.2006.002(c) The amendment is proposed under The Public Accountancy Act, Texas Revised Civil Statutes Annotated, Article 41a-1, sec.6(a) (Vernon Supp. 1998), which authorizes the Board to adopt rules deemed necessary or advisable to effectuate the Act. No other statute, code or article is affected by this proposed amendment. sec.521.2.Examination Fees. [(a)] The following fees shall be effective for the Uniform CPA Examination. (1) The filing fee for initial examination applications shall be $50. This is a non-refundable fee. (2) The fee for the initial examination conducted pursuant to the Act shall be $120. The fee for any subsequent examination shall be $30 per subject. [(b) The fee for the reciprocal equivalency examination shall be $400. This is a non-refundable fee and is not inclusive of the fees for certification by reciprocity in Section 521.3 of this title. 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 July 24, 1998. TRD-9811756 William Treacy Executive Director Texas State Board of Public Accountancy Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 305-7848 TITLE 25. HEALTH SERVICES PART I. Texas Department of Health CHAPTER 100. Immunization Registry 25 TAC sec.sec.100.1-100.11 The Texas Department of Health (department) proposes new sec.sec.100.1-100.11 concerning the creation of an immunization registry and for reporting requirements. Specifically, the sections define terms used in this chapter; address the criteria for inclusion of information and its confidentiality; the responsibilities of providers and payors; the effect of withdrawing consent; the information to be reported to the registry; data quality assurance; the responsibilities of managed care, health maintenance organizations, and insurance companies; reports back to providers; exchange of information between the department and providers; and use of registry data for school and day care enrollment. These rules will implement HB 3054 passed by the 75th Legislature, 1997 which enacted Chapter 900, adding Health and Safety Code sec.sec.161.007-161.009 requiring the department to establish an immunization registry and provide for the confidentiality of information it contains. Previously, the Texas Board of Health (board) adopted proposed rules on February 8, 1998, and were published in the February 20, 1998 issue of the Texas Register (23 Tex Reg 1472). The rules were withdrawn on May 15, 1998 (23 Tex Reg 5650) to allow the department to further consider and respond to public comment. Robert D. Crider, Jr., M.S., M.P.A., Director, Immunization Division, has determined that for the first five year period the sections are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the sections as proposed. Mr. Crider bases his estimate on the fiscal note prepared for the legislature on House Bill No. 3054, which became Chapter 900. Mr. Crider has determined that for each year of the first five years the sections are in effect, the public benefit anticipated as a result of these sections, is a centralized immunization registry that is the most efficient method for providers, both public and private, to maintain and access a child's immunization history. The public benefits anticipated as a result of reporting to the immunization registry include: better health care for children with less illness and death due to vaccine-preventable diseases, reduced costs due to the elimination of "over-vaccination" or "re-vaccination" because of lost records, reduced occurrences of "missed opportunities" to vaccinate which unnecessarily increase the risk of a child for vaccine-preventable diseases, and greater opportunity for outreach activities in areas of Texas with low immunization levels. Because the immunization records are stored electronically and available from one source, physicians are able to reduce staff time researching immunization histories. The child's complete immunization record will also be more easily available to school nurses, child care centers, and universities which require immunization information for enrollment. Software, installation, training and support for the tracking system, including the phone line access to the database, are provided by the department. The major costs to small business associated with the program will be to those medical practices providing immunizations. There will be increased time spent providing information to patients on the program, and providing them with consent forms and forms to decline participation. The consent form is kept with the medical record, so staff time must be spent filing them. These costs will vary from one practice to another depending upon how many patients are treated, how many participate in the program, how much time is devoted to explaining the program to each patient, filing the consents and the value of the staff time devoted to these tasks, and how providers are reimbursed for providing immunizations. Mr. Crider estimates the average cost to be $1.00 per each patient encounter where an immunization is provided. The cost to small business will be reduced by automated and streamlined billing of immunizations. Aside from the costs to small businesses, there will be certain costs imposed on other persons. Those who wish to withdraw parental consent must communicate this to the department, involving minimal postage, currently $.32, soon to increase to $.35. The department will develop and distribute postage paid forms for withdrawal of parental consent for registry tracking. Large insurers are required to submit data after 1998, and will incur certain staffing and transmittal costs, though larger entities will almost certainly file requested information electronically. The department estimates that the average insurer will incur costs equivalent to $500 per year of participation. There is no anticipated impact on local employment. Comments on the proposal may be submitted to Robert D. Crider, Jr., M.S., M.P.A., Director, Immunization Division, 1100 West 49th Street, Austin, Texas, 78756, (512) 458-7284. Comments will be accepted for 30 days following the date of publication of this proposal in the Texas Register. The new sections are proposed under the Health and Safety Code sec.161.007 which requires the board to adopt rules to implement the immunization registry, and sec.12.001 which provides the board with authority to adopt rules for the performance of every duty imposed by law on the board, the department, and the commissioner of health. These new sections affect the Health and Safety Code, Chapter 161. sec.100.1. Definitions. The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. (1) Department-The Texas Department of Health. (2) Immunization Registry-The database or single repository that contains immunization records and necessary personal data for identification. This database is confidential, and access to content is limited to authorized users. (3) Provider-Any physician, health care professional, or facility personnel duly licensed or authorized to administer vaccines. All providers are eligible to participate in the registry. All providers become agents of the Texas Department of Health for the purposes of the immunization registry. (4) User-An entity or individual authorized by the department to access immunization registry data. (5) Patient, client and child-The person or individual to whom a vaccine has been administered and are used interchangeably within the rules. (6) Vaccine-Includes toxoids and other immunologic agents. (7) Division-The Immunization Division of the Texas Department of Health, central office in Austin, Texas. (8) Health Plan-An insurance company, a health maintenance organization, or another organization that pays or reimburses a provider for immunizations administered. (9) Immunization history and record-An accounting of all vaccines that a child has received and other identifying information and are used interchangeably. (10) Consent or parental consent-A parent, managing conservator, or guardian has signed a statement agreeing that the child's record can be included in and released from the registry and are used interchangeably. Consent must be obtained one time only and is valid until the child attains 21 years of age. Parents may choose to withdraw consent at any time. (11) Parent, managing conservator, or guardian-The person or individual from whom consent is obtained and are used interchangeably within the rules. sec.100.2. Inclusion of Information and Confidentiality. (a) The immunization registry shall contain information on the immunization history that is obtained by the department under this section of each person who is younger than 18 years of age and for whom written parental consent has been obtained in accordance with this subsection. The department shall remove information from the registry for any person for whom consent has been withdrawn under paragraph (4) of this section. The provider shall obtain the written consent of a parent, managing conservator, or guardian of a patient before any information relating to the patient is included in the registry. The consent language should be substantially similar to the text of paragraphs (1), (2), and (3) of this section. The department shall prepare appropriate forms to obtain consent and make sure they are available to providers. (1) "I authorize the placement of my child's demographic information and immunization record into the Texas Department of Health's Immunization Registry. (2) "I authorize the Texas Immunization Registry to release past, present, and future information concerning my child's immunizations to myself and any of the following: (A) public health district; (B) local health department; (C) physician or immunization provider to the child; (D) Texas Department of Human Services for service eligibility verification; (E) the Commissioner of Health or designee; (F) school or child care facility in which the child is enrolled; and (G) health care plan in which the child is or was enrolled. (3) "I authorize the entities listed in paragraph 2(A), (B), (C), (D), and (E) of this subsection to further re-release this information to promote the availability of accurate, complete and current, immunization records to those entities and individuals who both administer and promote immunizations and the immunization registries of other states. (4) "I understand that I may withdraw the consent to place information on my child in the immunization registry and my consent to release information from the immunization registry at any time by written communication to the Texas Department of Health, Immunization Registry, 1100 West 49th Street, Austin, Texas, 78756." (5) A parent, managing conservator, or guardian of a patient, who agrees to the submission of their child's immunization information to the immunization registry should sign a signature block indicating their written consent to participate. Parents who have already consented to adding their child's immunization information to the registry and who wish to withdraw consent should sign a statement stating: "I do not want my child (name of child), dates of immunization(s) and related information to be included in the statewide immunization registry." or a similar statement. Parents choosing this option, must date and sign the statement and mail it to the Texas Department of Health, Immunization Registry, 1100 West 49th Street, Austin, Texas, 78756. Upon receipt of the request, the department will delete the complete record from the immunization registry and the department will mail a confirmation letter to the parent, managing conservator or guardian of the child that the complete record was deleted from the immunization registry. All information will be completely deleted from the immunization registry. It is the responsibility of the immunization provider or third party payor to insure that records are not forwarded to the immunization registry unless a parent has consented. A parental consent statement must be signed for participation in the immunization registry. No information should be forwarded to the department if parental consent is denied. (b) At birth, parents will be able to consent for the child's future immunization information to be included in the immunization registry by indicating approval on the birth certificate. This written consent will be valid until age 21 unless the parent, managing conservator or guardian notifies the department that consent is withdrawn. (c) As required by Health and Safety Code sec.161.007, all information which identifies individuals shall be protected as medical information in accordance with the Medical Practice Act, Texas Civil Statutes Article 4495b, sec.5.08. (d) As provided in Health and Safety Code sec.161.007(g), the department may use the registry to provide notices by mail, telephone, personal contact, or other means to a parent, managing conservator, or guardian regarding his or her child or ward who is due or overdue for a particular type of immunization according to the department's immunization schedule. The department shall consult with health care providers to determine the most efficient and cost-effective manner of using the immunization registry to provide these notices. (e) A health care provider or health plan which provides information to the immunization registry in good faith pursuant to this section is not subject to civil liability, as described in Health and Safety Code sec.161.007(g). sec.100.3. Providers, Health Plans, and Insurance Companies. (a) After December 31, 1998, an insurance company, a health maintenance organization, or another organization that pay or reimburse a claim for an immunization of a person younger than 18 years of age shall provide an immunization history to the department. On or before December 31, 1998, an insurance company, a health maintenance organization, or another organization that pay or reimburse a claim for an immunization of a person younger than 18 years of age may provide an immunization history to the department. Insurance companies, health maintenance organizations or other organizations that pay or reimburse a claim must document parental consent for inclusion in the registry before the record is submitted to the department. Insurance companies, health maintenance organizations or other organizations that pay or reimburse a claim will develop a system for documentation of consent status and develop systems or forms necessary to gather required information for the immunization registry. The payor is not required to send the department records where parental consent has been denied. (b) A provider shall inform each parent, managing conservator, or guardian of the child about the immunization registry in writing, and provide them with an opportunity to consent to the inclusion of information in the immunization registry. (c) External computer systems supplying the immunization registry with immunization information will incorporate an indicator field that records whether written consent for inclusion has been obtained. (d) If parental consent for participation in the immunization registry is obtained, the written consent for inclusion shall be maintained with the provider. sec.100.4. Withdrawal of Consent. (a) Upon receipt of a request to withdraw described in sec.100.2(a)(4) of this title (relating to Inclusion of Information and Confidentiality), the entire child's record will be removed from the immunization registry. A written confirmation will be provided to the parent, managing conservator, or guardian of withdrawal from the immunization registry within 30 business days of receipt by the Immunization Division. (b) Providers shall forward a child's immunization information only when the parent, managing conservator, or guardian has signed a written consent for the immunization information to be included in the statewide immunization registry. The department will not keep a child's immunization information in the immunization registry or other files when the parent, guardian, or managing conservator, has requested in writing that the immunization information be deleted from the immunization registry. (c) The department shall prepare appropriate forms to withdraw consent to participate in the immunization registry, and will make them available to providers. A completed form is not required to refuse to participate in the immunization registry. A parent, managing conservator, or guardian who consents and wishes to withdraw the consent at a later date, may send a signed request, in lieu of the form prepared by the department. The written request must contain the following information: (1) child's name; (2) child's date of birth; (3) child's gender; (4) name of parent, managing conservator or guardian; (5) parent and child's address for confirmation notice; (6) signature of parent, managing conservator or guardian; and (7) date of signature. sec.100.5. Reportable Information. (a) All vaccines administered after the effective date of these rules will be sent in a manner consistent with these rules and procedures issued by the department. All immunizations will be reported to the immunization registry until the child's 18th birthday. The immunization record will be purged or removed automatically from the immunization registry on the child's 21st birthday. (b) After parental consent is obtained, a provider reporting directly to the immunization registry, will submit all the information required. Required information consists of the following: last name, first name, date of birth, gender and address of the child who is immunized; name of parent, guardian, or managing conservator and relationship to child; mothers maiden name for record matching; vaccine administered; dose or series number; vaccine lot number; and, manufacturer of the vaccine administered. A child's immunization record will be accepted without a social security number. However, social security numbers are very important to assure that records are complete and adequately match. If available, the social security numbers shall be forwarded to the department. Other information specified on forms and data file layouts as optional should be provided, with the consent of a parent, when available. (c) Providers receiving written notifications from parents requesting that their child's immunization information not be reported to the immunization registry shall maintain the notice at the provider's office and no information shall be forwarded to the department. The immunization provider shall report documentation of the service provided to the insurance company, health maintenance organization or other organization for claims payment or reimbursement. If parental consent for participation in the immunization registry is obtained, the record should be forwarded to the department. (d) Beginning on January 1, 1999, vaccines administered will be reported to the department by paper forms, electronic transfer, fax, mail, telephone, or direct data entry into the immunization registry within 30 business days of administering a vaccine in a format prescribed or approved by the department. Reporting by telephone is limited to providers that administer vaccine to less than 25 children per month. (e) Reports submitted by electronic transfer will meet data quality, format, security, and timeliness standards prescribed by the department. (f) Beginning on January 1, 1999, with written consent from a parent, managing conservator, or guardian, providers must report the following necessary information to identify a child, adequately track the child's immunization status, allow for effective recall and reminder systems and satisfy the required data elements in the immunization registry. (1) Provider information: (A) the health care provider's name (first, middle initial, last); (B) business address (street, city, zip code); and (C) business telephone number (including area code). (2) Child and parent information: (A) child's name (first, middle initial, last); (B) child's address; (C) child's social security number (if available); (D) gender of the child; (E) child's date of birth; and (F) mother's maiden name (if available). (3) Vaccine information: (A) type of vaccine administered; (B) date the vaccine was administered (month, day, year); (C) vaccine lot number - (if known); (D) dose or series number ; and (E) name of vaccine manufacturer (if known). If the immunization record has been entered as historical data, the lot number and manufacturer are not required. Historical data is defined as immunizations that were administered prior to the present date and/or administered by a different provider. (g) Evidence of immunity to vaccine preventable disease. (h) In addition to data required, optional information which aids in the tracking of children in the immunization registry may be supplied at the discretion of the parent. (i) If written consent is obtained, providers should enter historical immunization records. (j) Beginning January 1, 1999, with written parental consent, a provider shall submit immunization information to the state-wide immunization registry. The provider is not required to submit immunization information when the immunization information is submitted by an insurance company, health maintenance organization or other organization that pays or reimburses a claim or encounter for administration of an immunization. Providers shall submit evidence of parental consent when they submit the documentation of services provided to the third party payor. sec.100.6. Information Included in the Immunization Registry Prior to September 1, 1997. (a) Immunization information contained in the immunization registry prior to September 1, 1997 that was obtained from the following sources will remain in the immunization registry and may be released from the immunization registry: (1) Integrated Client Encounter System (ICES); (2) Women, Infants and Children (WIC); (3) Medicaid; and (4) Texas Health Steps (formerly known as Early and Periodic Screening Diagnosis and Treatment - EPSDT) (b) The department will develop informational materials for distribution and posting at all provider's offices who have access to the immunization registry and in the provider offices using the Integrated Client Encounter System (ICES), Women, Infants and Children (WIC), Medicaid, Texas Health Steps (formerly known as Early and Periodic Screening Diagnosis and Treatment - EPSDT) that will notify parents, managing conservators or guardians about the following. (1) Their child may already have a record in the immunization registry from the one or more of the sources listed in subsection (a) of this section. (2) The parent may request that the department search the immunization registry for the possibility of an existing record. They may call the department's toll free number or make the request in writing. (3) The parent may request that any existing record be withdrawn and deleted from the immunization registry. sec.100.7. Data Quality Assurance. (a) As needed and for the purpose of assuring the quality and accuracy of the consented data submitted to the immunization registry, each provider will allow the department to inspect the immunization records stored with the provider. (b) For immunization records with written parental consent, a provider will, upon request of the department, supply missing immunization information, if known, or clarify immunization information submitted to the department. sec.100.8. Texas Managed Care Organizations, Texas Health Maintenance Organizations and other Texas Insurers Will Provide Immunization Data to the Department. (a) Organizations to which providers submit a claim or encounter information for an immunization, will in turn submit the required immunization information to the department within 25 business days from receipt from the provider. The organization must be able to verify the presence of the parental consent for participation in the immunization registry before the record is forwarded to the department (b) Automated data exchange will conform to standards prescribed by the department. Data exchange will follow the national standard for data exchange, known as Health Level 7 (HL7), when this format is completed. sec.100.9. Reports. (a) Authorized and registered providers or health plans may request recall and reminder reports from the immunization registry to provide notices of an upcoming or overdue immunization. (b) The provider, health plan and department will maintain the confidentiality of all immunization reports. sec.100.10. Acceptability As An Immunization Record. A printed immunization record obtained from the immunization registry shall be accepted as an official immunization record of the child for the purposes of satisfying the immunization requirements of schools, colleges/universities, and child-care facilities. sec.100.11. Confidentiality. (a) Information contained in the immunization registry is confidential. Registered providers using the immunization registry will be required to sign a confidentiality disclaimer statement. (b) The department will register providers and assign security levels. (c) Registered providers will be assigned a user ID and password. The registered provider will be encouraged to periodically change the assigned password. The password will be displayed on the screen as asterisks. 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 July 24, 1998. TRD-9811749 Susan K. Steeg General Counsel Texas Department of Health Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 458-7236 TITLE 28. INSURANCE PART I. Texas Department of Insurance CHAPTER 21. Trade Practices SUBCHAPTER P. Mental Health Parity 28 TAC sec.sec.21.2401-21.2407 The Texas Department of Insurance proposes new Subchapter P, sec.sec.21.2401 - 21.2407, concerning requirements of parity between mental health benefits and medical/surgical benefits. The proposed subchapter requires that where a carrier offers coverage to group health plans, any annual dollar limits or lifetime aggregate dollar limits for mental health benefits must be in parity with such dollar limits for medical/surgical benefits. The proposed sections are necessary to implement the federal Mental Health Parity Act of 1996, 29 U.S.C. sec.1185a (MHPA). The department is required to implement the provisions of the Federal Health Insurance Portability and Accessibility Act (HIPAA), which was amended to include the Mental Health Parity Act. The proposed subchapter is also necessary to allow the Texas Department of Insurance to maintain regulatory authority over carriers that issue coverage to group health plans in Texas. The MHPA provides that in the case of a group health plan that provides both medical/surgical benefits and mental health benefits, any annual dollar limits or lifetime aggregate dollar limits on mental health benefits shall not be lower than corresponding limits on medical/surgical benefits; in addition, if no annual limits or lifetime aggregate limits are placed on medical/surgical benefits, none may be imposed on mental health benefits. The federal statute does not require that a plan provide any mental health benefits, and does not restrict a plan from imposing terms and conditions on mental health benefits relating to the amount, duration, or scope of mental health benefits available under the plan or its coverage, other than the stated restrictions with respect to annual and aggregate lifetime limits. The statute includes an exemption for small employers and for group health plans or health insurance coverage offered in connection with group health plans for which the application of the statute would result in an increase to the cost of the plan or the plan's coverage of at least one percent. If a group health plan offers participants and beneficiaries two or more benefit package options, the requirements of the statute are applicable separately to each benefit package. The proposed subchapter sets forth rules for carriers that provide coverage to group health plans affected by the statute, to ensure that the coverage offered those group health plans will be in compliance with the federal statute. Section 21.2401 states the purpose and scope of the rule, and identifies by date of issuance or renewal the carriers' coverage to which the sections apply. Section 21.2402 defines the terms used in this subchapter. Specifically, carrier is defined to include all providers of group health insurance coverage, group health care coverage or group health benefit coverage that are regulated under the Texas Insurance Code. Section 21.2403 sets out the parity requirements for all group health plan coverage that is not exempt from the application of the Mental Health Parity Act. It sets out for carriers providing coverage for both medical/surgical and mental health benefits to group health plans the applicable parity requirements based on whether and to what extent the carrier's coverage includes aggregate lifetime or annual dollar limits on medical/surgical benefits. It also provides that this subchapter does not require a carrier to provide any mental health benefits except as otherwise required by the Texas Insurance Code, and that it does not affect the terms and conditions relating to the amount, duration, or scope of the mental health benefits provided under the carrier's coverage, except as specified in this section. Section 21.2404 identifies two exemptions from application of the Mental Health Parity Act; the first is for coverage provided to a small employer, as defined by 29 U.S.C. sec.1185a(c)(1)(B) and (C), and the second is for coverage that results in an increase in the cost for such coverage of at least one percent. Section 21.2405 specifies how a carrier's coverage, at the request of the group health plan, can be demonstrated to have met the requirements for exemption from the parity requirements of this subchapter based on the cost to the plan of such coverage; it also provides that a carrier may contract with a group health plan to provide the plan's participants and beneficiaries any required notice and summary of information about any such claimed exemption. Section 21.2406 provides that if a carrier provides coverage to a group health plan that offers more than one form of coverage to its participants, the parity requirements will be applied separately to each form of coverage. Section 21.2407 provides that a carrier may sell coverage without parity to a group health plan only if the coverage qualifies for an exemption provided in this subchapter, or if the group health plan has already qualified for such an exemption. Rose Ann Reeser, Senior Associate Commissioner of Regulation and Safety, has determined that for each year of the first five years the sections are in effect, there will be no fiscal impact on state or local government as a result of enforcing or administering the proposed sections. There will be no measurable effect on local employment or the local economy. Ms. Reeser has also determined that for each year of the first five years the sections are in effect, the public benefit anticipated as a result of the proposed sections will be, first, that persons receiving mental health benefits through a carrier providing coverage to a group health plan will receive, with respect to those mental health benefits, parity with medical/surgical benefits in annual and lifetime aggregate benefit limits; and second, that the Texas Department of Insurance will retain its authority to regulate carriers providing coverage to group health plans in Texas, which authority would be preempted by federal regulation under HIPAA if these sections are not enacted. Ms. Reeser estimates that the costs to comply with this proposed subchapter will result from the federal legislative enactment of the Mental Health Parity Act, rather than from these rules. Ms. Reeser estimates that such costs will be as follows. Cost Impact of the Federal Mental Health Parity Act. The U.S. Bureau of Census's March 1996 Current Population Survey shows the number of workers and the number of workers covered by an employer's health plan by firm size. For employers subject to this subchapter, those with greater than 50 employees, the percentage of covered workers range from 53.7 percent for firms with 50 to 99 employees, to 67.7 percent for firms with more than 1,000 employees. The Survey does not, however, distinguish between traditional health benefit plans issued by carriers and self-insured plans. The General Accounting Office ("GAO"), in its August 1996 study, "Health Insurance Regulation: Varying State Requirements Affect Cost of Insurance," indicates that 11 percent of employees in firms with fewer than 100 employees, 34 percent of employees in firms with 101 to 500 employees, and 63 percent of employees in firms with more than 500 employees are covered by self-insured plans. The department adjusted the Current Population Survey to take account of the self-insurance data available from the GAO; all numbers below exclude self- insured plans. The resulting figures show that the percentage of employees covered by traditional carriers ranges from 47.8 percent in firms with 50 to 100 employees, to 25 percent in firms with over 1,000 employees. By applying these revised percentages to data provided by the Texas Workforce Commission on the distribution of Texas employees by firm size, it is estimated that there are 1,907,751 employees covered by carrier-provided health plans sponsored by Texas employers with 50 or more employees. However, the U. S. Departments of Labor and Health and Human Services' (hereafter, "the Departments") data provided in the impact analysis, which accompanied the federal interim rules published in December 1997, indicates that there are 2.2 covered persons per covered employee. TDI reviewed the impact analysis and concurs with the results. Therefore, the total estimated number of Texas participants and beneficiaries covered by employer sponsored health plans is 4,197,051. One Percent Exemption Rule The Departments estimate that, at a maximum, 10 percent of all employer sponsored health plans countrywide, covering about 5 million employees, or 11 million participants and beneficiaries, could be affected by the 1 percent exemption rule. The Departments further found through a recent study performed by William M. Mercer, Inc., that fewer than 2 percent of firms-6,000 plans or 22 percent of all potentially eligible plans-intend to pursue this exemption. The 10 percent maximum will affect 9.7 percent of all covered participants and beneficiaries, and the 2 percent of firms expected to file for an exemption will affect 2.1 percent of all covered participants and beneficiaries. By applying these percentages to the Texas covered participants and beneficiaries of 4,197,051, the expected number of participants and beneficiaries in firms with greater than 50 employees will range from 0, if no eligible employer uses the exemption, to a maximum of 407,114 if all eligible firms make use of the exemption, with a likely number of 88,138 individuals, if only 2 percent of eligible employers make use of the exemption. Conversely, the number of individuals that will be covered by MPHA will range from 3,789,937 to 4,197,051, with a likely number of 4,108,913. The Departments also found that the cost of MHPA for firms with 50 or more employees, 113,000,000 participants and beneficiaries in all, will be $653 million, or a cost of $5.78 per individual if no exemptions are used. The cost per participant/beneficiary, if all eligible exemptions are used, is $3.04. Therefore the estimated cost of MHPA in Texas is estimated to be from $11,521,409, if all eligible exemptions are used, to $24,258,944, if no exemptions are used. Assuming that the most likely scenario is that only 2 percent of eligible firms use the exemption, total industry cost is expected to be $18,120,306 (4,108,913 times an average cost per participant/beneficiary of $4.41). Exemption Notices to Participants The number of exemption notices to participants and beneficiaries is estimated to range from 0, if no eligible firm makes use of the exemption, to 185,052, if all potentially eligible firms do. With the likely scenario of 2 percent of eligible firms using the exemption, 40,826 exemption notices will be required. At a cost per notice of $.87 estimated by the Departments, the industry cost of exemption notices will range from $0 to $160,995 for Texas plans, with a likely cost of $35,518. Determination of 1 Percent Eligibility The Departments estimate that there are .00288 carrier-provided plans per covered participant/beneficiary in firms with over 50 employees countrywide. The estimated number of covered participants and beneficiaries in Texas plans is 4,197,051; therefore, the estimated number of plans in Texas is 12,088. Only 10 percent of all plans are expected to be eligible for the 1 percent exemption. Therefore, approximately 1,209 Texas plans are expected to be eligible. Furthermore, the Departments estimate that 17.82 percent of all potentially eligible plans will initiate an automated claim record system to facilitate the calculation of a plan's costs attributable to MHPA. The estimated number of Texas plans that will automate their in-house systems to determine eligibility is 215. The Departments also estimate that carriers will perform this function for 4.6 percent of all eligible plans. Therefore, there are estimated to be 55 carriers who will perform this function in Texas. Together, there are 270 non- self-insured plans and carriers which are estimated to incur costs to automate their systems. The Departments calculate the start-up costs of automation at $5,000. Therefore, industry cost in Texas is expected to amount to $1,326,162. This is an annualized industry cost of $188,713, determined by using a capital recovery factor of 0.1423, calculated at 7% over 10 years. Ms. Reeser has determined that any effect of these sections on small businesses subject to the federal law and this subchapter results from the federal legislative enactment of the Mental Health Parity Act. In addition, total cost to a carrier is not dependent upon the size of the carrier, but rather is dependent upon that carrier's number of enrollees under the affected health benefit plans and the number of employers seeking exemptions. Both small businesses and the largest business affected by these sections would incur the same cost, as reflected above. The cost to a small or large business per labor hour will not vary if the number of enrollees is approximately the same. Comments on the proposal must be submitted within 30 days after publication of the proposed sections in the Texas Register to Lynda H. Nesenholtz, General Counsel and Chief Clerk, Mail Code 113-2A, Texas Department of Insurance, P.O. Box 149104, Austin, Texas 78714-9104. An additional copy of the comment must be submitted to Linda Von Quintus, Deputy Commissioner, Regulation and Safety Division, Mail Code 107-2A, Texas Department of Insurance, P.O. Box 149104, Austin, Texas 78714-9104. Any requests for a public hearing should be submitted separately to the Office of the Chief Clerk. Subchapter P, sec.sec.21.2401-21.2407 are proposed under the Insurance Code Articles 3.42, 3.51-6, 3.95-15, 20A.22, 21.21, 26.04 and 1.03A; the federal Health Insurance Portability and Accountability Act of 1996 (HIPAA); and the federal Mental Health Parity Act of 1996 (MHPA). The Insurance Code Article 3.42 authorizes the commissioner to disapprove any form reflecting coverage that is contrary to law. The Insurance Code Article 3.51-6 authorizes the commissioner to promulgate rules as necessary to carry out the provisions regulating group health insurance. The Insurance Code Article 20A.22 authorizes the commissioner to promulgate rules governing HMOs necessary and proper to meet the requirements of federal law and regulations. The Insurance Code Article 21.21 authorizes the commissioner to promulgate rules regarding unfair practices to affect uniformity with federal law. The Insurance Code Article 26.04 instructs the commissioner to adopt rules to meet the minimum requirements of federal law and regulations. The Insurance Code Article 3.95-15 instructs the commissioner to adopt rules to meet the minimum requirements of federal law and regulations. The Insurance Code Article 1.03A provides that the Commissioner of Insurance may adopt rules and regulations to execute the duties and functions of the Texas Department of Insurance only as authorized by a statute. The minimum requirements of federal law for parity in mental health benefits are contained in HIPAA, as amended by the MPHA. Exclusion of small employer plans in the provision of parity in mental health benefits is necessary to meet the minimum requirements of federal law. The following chapters are affected by this proposal: Rule Number Statute sec.sec.21.2401 - 21.2407 Texas Insurance Code, Chapters 3, 10, 20, 20A, 21, 22 and 26. sec.21.2401. Purpose and Scope. The purpose of this subchapter is to coordinate the requirements of Texas law with federal law requiring parity between certain mental health benefits and medical/surgical benefits. This subchapter applies to carriers providing, as allowed by law, coverage to group health plans for both medical/surgical benefits and mental health benefits, which is delivered, issued for delivery, or renewed on or after January 1, 1998. sec.21.2402. Definitions. The following words and terms, when used in this subchapter shall have the following meanings, unless the context clearly indicates otherwise. (1) Aggregate lifetime limit - A dollar limitation on the total amount of specified benefits that may be paid under a carrier's coverage for an individual (or for a group of individuals considered a single unit in applying this dollar limitation, such as a family or an employee plus spouse). (2) Annual limit - A dollar limitation on the total amount of specified benefits that may be paid in a 12-month period under a carrier's coverage for an individual (or for a group of individuals considered a single unit in applying this dollar limitation, such as a family or an employee plus spouse). (3) Base period - The period used to calculate whether a group health plan may claim, with respect to its coverage, the one percent increased cost exemption provided for in sec.21.2405 of this subchapter (relating to Cost of Coverage Exemption). The base period must begin on the first day in the group health plan's plan year that the carrier's coverage complies with this subchapter or the federal Mental Health Parity Act, Part 7 of Subtitle B of Title I of ERISA, 29 U.S.C. sec.1001, et seq., and must extend for a period of at least six consecutive calendar months. (4) Carrier - An insurance company, a group hospital service corporation operating under Chapter 20 of the Texas Insurance Code, a fraternal benefit society operating under Chapter 10 of the Code, a stipulated premium insurance company operating under Chapter 22 of the Code, a health maintenance organization operating under the Texas Health Maintenance Organization Act (Chapter 20A, Texas Insurance Code), an approved nonprofit health corporation that is certified under Section 5.01(a), Medical Practice Act (Article 4495b, Texas Civil Statutes) and that holds a certificate of authority under Texas Insurance Code Article 21.52F, or a multiple employer welfare arrangement that holds a certificate of authority under Texas Insurance Code Article 3.95-2. (5) Coverage - Group health insurance coverage, group health care coverage or group health benefit coverage issued by a carrier to a group health plan. (6) Group health plan - An employee welfare benefit plan, as defined in 29 U.S.C. 1002(1), that provides medical care to participants or their dependents through the purchase of coverage from a carrier. (7) Incurred expenditures - Actual claims incurred during the base period and reported within two months following the base period, and administrative costs for all benefits under the group health plan, including mental health benefits and medical/surgical benefits, during the base period. Incurred expenditures do not include premiums. (8) Medical care - Amounts paid for: (A) the diagnosis, cure, mitigation, treatment or prevention of disease, or amounts paid for the purpose of affecting any structure or function of the body, (B) transportation primarily for and essential to medical care described in subparagraph (A) of this paragraph, and (C) coverage for medical care described in subparagraphs (A) and (B) of this paragraph. (9) Medical/surgical benefits - Benefits for medical or surgical services, as defined under the terms of the coverage, but does not include mental health benefits. (10) Mental health benefits - Benefits for mental health services, as defined under the terms of the coverage, but does not include benefits for treatment of substance abuse or chemical dependency. sec.21.2403. Parity Requirements. (a) Coverage that provides both medical/surgical benefits and mental health benefits must comply with paragraphs (1), (2), or (4) of this subsection. (1) If a carrier's coverage does not include an aggregate lifetime or annual limit on any medical/surgical benefits or includes aggregate lifetime or annual limits that apply to less than one-third of all medical/surgical benefits, the carrier may not impose any aggregate lifetime or annual limit, respectively, on mental health benefits. (2) If a carrier's coverage includes an aggregate lifetime or annual limit on at least two-thirds of all medical/surgical benefits, the carrier must either: (A) apply the aggregate lifetime or annual limit both to the medical/surgical benefits to which the limit would otherwise apply and to mental health benefits in a manner that does not distinguish between the medical/surgical and mental health benefits; or (B) not include an aggregate lifetime or annual limit on mental health benefits that is less than the aggregate lifetime or annual limit, respectively, on the medical/surgical benefits. (3) For purposes of this section, the determination of whether the portion of medical/surgical benefits subject to a limit represents one-third or two-thirds of all medical/surgical benefits is based on the dollar amount of all payments by the carrier for medical/surgical benefits expected to be paid under a given group health plan for the plan year (or for the portion of the plan year after a change in coverage that affects the applicability of the aggregate lifetime or annual limits). Any reasonable method may be used to determine whether the dollar amounts expected to be paid under the coverage will constitute one-third or two-thirds of the dollar amount of all payments for medical/surgical benefits. (4) Coverage that is not described in subsection (a)(1) or (a)(2) of this section must either impose -- (A) no aggregate lifetime or annual limit, as appropriate, on mental health benefits; or (B) an aggregate lifetime or annual limit on mental health benefits that is no less than an average limit for medical/surgical benefits calculated in the following manner: (i) The average limit is calculated by taking into account the weighted average of the aggregate lifetime or annual limits, as appropriate, that are applicable to the categories of medical/surgical benefits. (ii) Limits based on delivery systems, such as inpatient/outpatient treatment, or normal treatment of common, low-cost conditions (such as treatment of normal births), do not constitute categories for purposes of this subparagraph. (iii) For purposes of determining weighted averages, any benefits that are not within a category that is subject to a separately-designated limit under the coverage are taken into account as a single separate category by using an estimate of the upper limit on the dollar amount that a carrier may reasonably be expected to incur with respect to such benefits for a given group health plan, taking into account any other applicable restrictions under the coverage. (C) For purposes of paragraph (4), the weighting applicable to any category of medical/surgical benefits is determined in the manner set forth in paragraph (3) of this subsection for determining one-third or two-thirds of all medical/surgical benefits. (b) This subchapter does not: (1) require a carrier to provide any mental health benefits, except as otherwise specified in the Texas Insurance Code; or (2) affect the terms and conditions (including, as allowed by law, cost sharing, limits on numbers of visits or days of coverage, and requirements relating to medical necessity, requiring prior authorization for treatment, or requiring primary care physicians' referrals for treatment) relating to the amount, duration, or scope of the mental health benefits under the carrier's coverage, except as specifically provided in this section. sec.21.2404. Exemptions. (a) This subchapter does not apply to a carrier offering coverage in connection with a group health plan for a plan year of a small employer as defined by 29 U.S.C. 1185a(c)(1)(B) and (C). (b) Coverage is not subject to the requirements of this subchapter if the application of sec.21.2403 of this title (relating to Parity Requirements) to such coverage results in an increase in the cost for such coverage of at least one percent, as determined by sec.21.2405 of this title (relating to Cost of Coverage Exemption). sec.21.2405. Cost of Coverage Exemption. (a) To qualify for an exemption from this subchapter on the basis that the application of this subchapter increases the cost of coverage by at least one percent, at the request of a group health plan, a carrier must demonstrate with actual data that the application of this subchapter resulted in an increase of cost of the carrier's coverage in connection with that group health plan of one percent or more. The data relied upon by a carrier demonstrating such an increase must be based upon a base period of no shorter than six months. (b) The calculation of the cost of coverage shall be by the following formula: Figure: 28 TAC sec.21.2405(b) (1) IE - the incurred expenditures during the base period. (2) CE - the claims incurred during the base period that would have been denied under the terms of the carrier's coverage absent amendments to coverage required to comply with this subchapter or the federal Mental Health Parity Act. (3) AE - administrative costs related to claims in CE and other administrative costs attributable to complying with the requirements of this subchapter or the federal Mental Health Parity Act. (c) A carrier may contract with a group health plan to provide to the plan's participants and beneficiaries, and to applicable federal agencies, any notice of exemption required by applicable federal regulations. (d) A carrier may contract with a group health plan to provide to the plan's participants and beneficiaries (or their representatives), on request and at no charge to the recipient, a summary of the information on which the exemption was based. If a carrier so contracts with a group health plan: (1) An individual who is not a participant or beneficiary and who presents the carrier a notice described in subsection (c) of this section is considered to be a representative. A representative may request the summary of information by providing the plan a copy of the notice provided to the participant under subsection (c) of this section with any individually identifiable information redacted. (2) The summary of information must include the incurred expenditures, the base period, the dollar amount of claims incurred during the base period that would have been denied under the terms of the plan absent amendments required to comply with subsection (a) of sec.21.2403 of this title (relating to Parity Requirements), the administrative costs related to those claims, and other administrative costs attributable to complying with the requirements for the exemption. In no event should the summary of information include any individually identifiable information. sec.21.2406. Separate Application to Each Benefit Package Offered. If a carrier provides coverage to a group health plan that offers two or more coverages to participants or their dependents, the requirements of this subchapter, including the exemptions, shall be applied separately to each coverage. An example of a group health plan that provides two or more coverages is a group health plan that offers both indemnity coverage and HMO coverage. sec.21.2407. Sale of Nonparity Policies or Coverage. A carrier may sell coverage without parity, as described in sec.21.2403 of this title (relating to Parity Requirements) to a group health plan only if: (1) the coverage meets the requirements of sec.21.2404 of this title (relating to Exemptions); or (2) the group health plan has already met the requirements of sec.21.2404 of this title. 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 July 27, 1998. TRD-9811842 Lynda H. Nesenholtz General Counsel and Chief Clerk Texas Department of Insurance Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-6327 TITLE 34. PUBLIC FINANCE PART I. Comptroller of Public Accounts CHAPTER 3. Tax Administration SUBCHAPTER F. Motor Vehicle Sales Tax 34 TAC sec.3.70 The Comptroller of Public Accounts proposes an amendment to sec.3.70, concerning motor vehicle leases and sales. Senate Bill 862, 75th Legislature, 1997, amends the Tax Code, sec.152.001(2)(C), to exclude from the definition of retail sale a motor vehicle purchased by a franchised dealer that is leased and then immediately sold to a lessor with the lease contract. Changes made by prior legislation, effective September 1, 1997, concerning exempt leased interstate vehicles are also addressed. Other changes are made for clarity of long standing administration. Mike Reissig, chief revenue estimator, has determined that for the first five- year period the amendment will be in effect there will be no significant revenue impact on the state or local government. Mr. Reissig also has determined that for each year of the first five years the amendment is in effect the public benefit anticipated as a result of adopting the amendment will be in providing new information regarding tax responsibilities. This amendment is adopted under the Tax Code, Title 2, and does not require a statement of fiscal implications for small businesses. There is no significant anticipated economic cost to individuals who are required to comply with the proposed amendment. Comments on the proposal may be submitted to Bryant Lomax, Manager, Tax Policy Division, P.O. Box 13528, Austin, Texas 78711. This amendment is proposed under the Tax Code, sec.111.002, which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of the Tax Code, Title 2. The amendment implements the Tax Code, sec.152.001 and sec.152.089. sec.3.70. Motor Vehicle Leases and Sales. (a) Except for purchases by franchised dealers described in this subsection, motor
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      [Motor] vehicles which are purchased by a lessor to be leased are subject to motor vehicle sales or use tax based upon the purchase price of the motor vehicle to the lessor. Such tax is due from the lessor at the time of purchase. Subsequent lease payments are not subject to the tax. The purchase of a new motor vehicle by a franchised dealer who removes the motor vehicle from inventory for the purpose of leasing the vehicle to another person, and who immediately after executing the lease contract transfers title of the vehicle and assigns the lease contract to a lessor, is not a retail purchase and is not subject to tax. If the title is not transferred and the lease assigned within seven calendar days, the dealer's purchase and use will be presumed to be a retail purchase and taxable. The presumption may be overcome by showing evidence of intent. The lessor to whom the dealer transfers title and assigns the lease contract is liable for motor vehicle sales and use tax.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (b) If, at the termination of a lease, a motor vehicle is sold by the lessor to the lessee and the lease contained an "option to purchase" at less than fair market value or a "must purchase" clause or if the vehicle is sold to the lessee at less than fair market value, the amount subject to the motor vehicle sales and use tax will be the total consideration paid the lessor by the lessee under the agreement, since it will be considered a sale rather than a lease agreement. "Total consideration" means the amount paid or to be paid for a motor vehicle and all accessories attached to it at the time of the sale; it does not include separately stated finance charges, carrying charges, service charges,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          or interest. (c) If the transaction is considered to be a sale and not a lease, as described in subsection (b) of this section, no additional motor vehicle sales tax is due at the time the initial lessee/purchaser
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            [lessee] takes title to the vehicle, provided the correct amount of tax was previously paid on the total consideration. If the correct amount of tax was not paid on the total consideration, the lessee/purchaser
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              [lessee] must pay the difference when the vehicle is titled in his name. (d)-(e) (No change.) (f) A credit is allowed to a lessee who has paid or whose lessor has paid legally imposed similar
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                tax with respect to a motor vehicle to another state and thereafter that vehicle becomes subject to the Texas motor vehicle use tax. If the lessee purchases the leased vehicle, credit is allowed for Texas motor vehicle use tax paid by the lessee when the unit was brought into this state.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  (g)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    An owner of a motor vehicle that was purchased to be leased for interstate use, tax exempt under Tax Code, sec.152.089, is liable for motor vehicle sales/use tax if the motor vehicle is no longer held for interstate use or exclusively for resale. The tax is imposed at a rate prescribed by Tax Code, sec.152.021(b), and based on the owner's book value at the time the vehicle was removed from interstate use.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      The Agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Filed with the Office of the Secretary of State on July 27, 1998. TRD-9811823 Martin Cherry Chief, General Law Comptroller of Public Accounts Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-4062 34 TAC sec.3.74 The Comptroller of Public Accounts proposes a new sec.3.74, concerning seller responsibility. Senate Bill 862, 75th Legislature, 1997, amends the Tax Code, sec.152.001 and sec.152.0411, effective September 1, 1997, defining a taxable retail sale and addressing when motor vehicle dealers are required to collect motor vehicle sales tax. Changes made to seller requirements during previous legislative sessions, such as filing returns, tax collection, and documentation of tax exempt sales, are also included. Mike Reissig, chief revenue estimator, has determined that for the first five- year period the rule will be in effect there will be no significant revenue impact on the state or local government. Mr. Reissig also has determined that for each year of the first five years the rule is in effect the public benefit anticipated as a result of enforcing the rule will be in providing new information regarding tax responsibilities. This rule is adopted under the Tax Code, Title 2, and does not require a statement of fiscal implications for small businesses. There is no significant anticipated economic cost to individuals who are required to comply with the proposed rule. Comments on the proposal may be submitted to Bryant Lomax, Manager, Tax Policy Division, P.O. Box 13528, Austin, Texas 78711. This new section is proposed under the Tax Code, sec.111.002, which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of the Tax Code, Title 2. The new section implements the Tax Code, sec.152.001 and sec.152.0411. sec.3.74. Seller Responsibility. (a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (1) Date of sale - The day the motor vehicle is delivered to the purchaser unless otherwise specified by written agreement. (2) Dealer - A person who holds a general distinguishing number issued pursuant to the Transportation Code, Chapter 503. The term includes a dealer authorized by law and by franchise agreement to offer for sale a new motor vehicle. The term also includes an independent dealer authorized by law to offer for sale a motor vehicle other than a new motor vehicle. (3) New motor vehicle - A motor vehicle that, without regard to mileage, has not been the subject of a retail sale. (4) Retail sale - A sale of a motor vehicle other than: (A) the sale of a new motor vehicle in which the purchaser is a franchised dealer who is authorized by law and by franchise agreement to offer the vehicle for sale as a new motor vehicle and who acquires the vehicle either for the exclusive purpose of sale in the manner provided by law or for purposes allowed under the Transportation Code, Chapter 503; (B) the sale of a vehicle other than a new motor vehicle in which the purchaser is a dealer who holds a dealer's general distinguishing number issued under the Transportation Code, Chapter 503, and who acquires the vehicle either for the exclusive purpose of resale in the manner provided by law or for purposes allowed under the Transportation Code, Chapter 503; or (C) the sale to a franchised dealer of a new motor vehicle removed from the franchised dealer's inventory for the purpose of entering into a contract to lease the vehicle to another person if, immediately after executing the lease contract, the franchised dealer transfers title of the vehicle and assigns the lease contract to the lessor of the vehicle . (5) Seller-financed sale - A retail sale of a motor vehicle by a dealer in which the selling dealer collects all or part of the total consideration in periodic payments and retains a lien on the motor vehicle until all payments have been received. The term does not include a : (A) retail sale of a motor vehicle in which a person other than the seller provides the consideration for the sale and retains a lien on the motor vehicle as collateral; (B) lease; or (C) rental. (6) Total consideration - The amount paid or to be paid for a motor vehicle and its accessories attached on or before the sale. The term does not include separately stated finance or interest charges on credit extended under a conditional sale or other deferred payment contract, or the value of a motor vehicle taken by a seller as all or a part of the consideration for sale of another motor vehicle. (b) Tax permit. Every dealer making seller-financed sales must apply to the comptroller for a tax permit. Each entity (corporation, partnership, sole proprietor, etc.) must apply for its own permit. The permit application will be furnished by the comptroller. The permit cannot be transferred from one owner to another. (c) Collection of the tax. (1) Seller-financed sales. The selling dealer must collect tax on the total consideration paid as the payments are received. The total downpayment is subject to tax unless the payment is itemized to indicate nontaxable charges. If the finance agreement bears interest, it is conclusively presumed that interest accrues and is paid by the purchaser on a straight line basis. The tax is a debt of the purchaser to the seller until paid. (2) Retail sales other than seller-financed sales. Unless the sale is exempt, the selling dealer must collect the tax on the total consideration paid for the motor vehicle. The tax is a debt of the purchaser to the seller until paid. This section does not apply to the sale of a motor vehicle with a gross weight in excess of 11,000 pounds; however, the seller must provide the purchaser with a completed tax statement and all other documents necessary to title and register the motor vehicle. (d) Remittance of the tax. (1) Seller-financed sales. (A) Each selling dealer must remit the tax due to the comptroller as the receipts are received. On or before the 20th day of the month following each reporting period, each selling dealer shall file a consolidated return with the comptroller, together with the tax payment for all locations operated by the entity. (B) The returns must be signed by the person required to file the report or by the person's duly authorized agent. (C) The returns will be filed on forms prescribed by the comptroller. The fact that the dealer does not receive the form or does not receive the correct forms from the comptroller for the filing of the return does not relieve the selling dealer of the responsibility of filing a return and payment. (D) The return should be completed attributing the receipts to the county in which the motor vehicle certificate of title is applied for. (E) Selling dealers owing tax of less than $1,500 per quarter may file returns quarterly. The quarterly reporting periods end on March 31st, June 30th, September 30th, and December 31st. (F) Selling dealers owing $1,500 or more in tax per quarter must file monthly returns unless a seller prepays the tax. (G) Discounts and prepaying the tax. (i) Each dealer may retain 0.5% of the amount of tax due as reimbursement for the expense of collecting the tax. (ii) A dealer who makes a prepayment based upon an estimate of tax liability may retain an additional 1.25% of the amount due. The prepayment must be made on or before the 15th day of the second month of the quarter for which the tax is due. Monthly prepayments are due on or before the 15th day of the month and are also entitled to the additional 1.25% deduction. (iii) On or before the 20th day of the month following the quarter or month for which a prepayment was made, the dealer must file a return showing the actual liability and remit any amount due in excess of the prepayment. If there is an additional amount due, the dealer may retain the 0.5% reimbursement provided that both the return and the additional amount due are timely filed. If the prepayment exceeded the actual liability, the selling dealer will be mailed an overpayment notice or refund warrant. (iv) If a dealer does not file a quarterly or monthly return together with payment on or before the due date, the dealer forfeits all discounts and incurs a mandatory 5.0% penalty. After the first 30 days delinquency, an additional mandatory penalty of 5.0% is assessed against the selling dealer. After the first 60 days delinquency, interest begins to accrue at the rate of 12% annually. (2) Retail sales other than seller-financed sales. (A) Except for sales of motor vehicles with a gross weight in excess of 11,000 pounds, the selling dealer must remit the tax, along with the properly completed tax statement, to the county tax assessor-collector by the 20th working day following the date of sale. (B) Documentation must be retained to indicate that the proper amount of tax was submitted to the county tax assessor-collector. A copy of the receipt for taxes issued by the county tax assessor- collector will satisfy this requirement. (e) General principles of seller-financed sales. (1) A transaction is considered paid in full when the purchaser of the motor vehicle provides that motor vehicle to the seller as consideration for the purchase of another motor vehicle from the same seller. The remainder of any tax owed on the initial sale must be reported in the report period in which the motor vehicle is traded in. (2) Tax remitted to the county tax assessor-collector at the time of registration and title transfer will be considered to be intended to satisfy the tax liability for that transaction and no refund will be available if the purchaser fails to satisfy his total liability to the dealer. (3) If the selling dealer fails to apply for certificate of title and registration within 60 days of the date of sale, the seller becomes liable for all unremitted tax on the total consideration and must remit that amount on the first return due after the expiration of the 60 days. (4) If the selling dealer transfers the right to receive payments on a sale, the dealer is liable for the unpaid tax due on the total consideration and must remit that amount in the report period in which the transfer of the right to receive payments is made. The dealer may not take a deduction in the amount of tax due if a transfer at a discount is made. The right to receive payments is transferred and the tax remittance accelerated regardless of recourse to the seller or any other condition. (f) Resale certificates and exemption documentation. (1) A seller may accept a motor vehicle resale certificate only from a dealer as defined in this section. A resale certificate for the sale of a new motor vehicle purchased for resale may only be accepted from a franchised dealer who is authorized by law and by franchise agreement to offer the vehicle for sale as a new motor vehicle. To be valid, the motor vehicle resale certificate must show the general distinguishing number issued pursuant to the Transportation Code, Chapter 503. See sec.3.95 of this title (relating to Motor Vehicle Sales Tax Resale Certificate; Sales for Resale). (2) A seller may accept a properly completed Texas Motor Vehicle Sales Tax Exemption Certificate - For Vehicles Taken Out of State, in lieu of collecting tax on motor vehicles that will be removed from this state without being operated other than to remove the motor vehicle from this state. See sec.3.90 of this title (relating to Motor Vehicles Purchased for Use Outside of Texas). (3) Exemptions provided for in the Tax Code, Chapter 152, Subchapter E, other than those discussed in paragraphs (1) and (2) of this subsection, shall be indicated on the tax statement provided to the county tax assessor-collector at the time of tax remittance and title application. 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 July 27, 1998. TRD-9811824 Martin Cherry Chief, General Law Comptroller of Public Accounts Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-4062 TITLE 37. PUBLIC SAFETY AND CORRECTIONS PART I. Texas Department of Public Safety CHAPTER 16.Commercial Driver's License SUBCHAPTER A.Licensing Requirements, Qualifications, and Endorsements 37 TAC sec.16.12 The Texas Department of Public Safety proposes an amendment to sec.16.12, concerning Licensing Requirements, Qualifications, Restrictions, and Endorsements. Subsection (c) definition is amended to exempt drivers of portable tanks having a rated capacity under 1,000 gallons from having to obtain a CDL. Tom Haas, Chief of Finance, has determined that for each year of the first five year period the rule is in effect there will be no fiscal implications as a result of enforcing or administering the rule. Mr. Haas also has determined that for each year of the first five years the rule is in effect the public benefit anticipated as a result of enforcing the rule will be to include an additional exempt group of drivers under the commercial driver's license law. There is no anticipated cost to persons who are required to comply with the section as proposed. There are no anticipated economic costs to small or large businesses. Comments on the proposal may be submitted to Mary Ann Courter, Chief of Legal Services, Texas Department of Public Safety, Box 4087, Austin, Texas 78773-0140, (512) 424-2890. The amendment is proposed pursuant to Texas Transportation Code, sec.522.005 which provides the Texas Department of Public Safety with the authority to adopt rules necessary to carry out the Texas Driver's License Act, Texas Commercial Driver's License Act, and the Federal Commercial Motor Vehicle Safety Act of 1986. Texas Transportation Code, sec.522.005 is affected by this proposal. sec.16.12.Endorsements. (a)-(b) (No change.) (c) N - Tank Vehicle (CDL only). This endorsement authorizes the holder to operate a vehicle or combination of vehicles which are designed to transport any liquid or gaseous materials within a tank that is either permanently or temporarily attached to the vehicle or chassis. Such vehicles include, but are not limited to, cargo tanks and portable tanks, as defined in 49 CFR, Part 171. A CDL tank endorsement is required if the cargo tank has a bulk packaging over 119 gallons for liquids, or a water capacity greater than 1,000 pounds as a receptacle for a gas if, they are permanently attached to or form a part of a motor vehicle, or is not permanently attached to a motor vehicle but which, by reason of its size, construction or attachment to a motor vehicle is loaded or unloaded without being removed from the motor vehicle and is not built to the specifications for cylinders, or portable tanks. A portable tank is defined as a bulk packaging (except a cylinder having a water capacity of 1,000 pounds or less) designed primarily to be loaded onto, or on or temporarily attached to a transport vehicle and equipped with skids, mounting, or accessories to facilitate handling of the tank by mechanical means. A portable tank that meets the bulk packaging definition described in this subsection requires a CDL with a tank endorsement. However, this definition does not include portable tanks having a rated capacity under 1,000 gallons.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (d)-(e) (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 July 24, 1998. TRD-9811739 Dudley M. Thomas Director Texas Department of Public Safety Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 424-2890 PART VI. Texas Department of Criminal Justice CHAPTER 157. State Jail Felony Facilities SUBCHAPTER A. Admissions and Allocations 37 TAC sec.157.4 The Texas Department of Criminal Justice proposes an amendment to sec.157.4, concerning the Designation of Regions. Under the Texas Government Code, sec.507.003 and sec.507.004, as added by Acts of the 73rd Legislature, 1993, the Texas Board of Criminal Justice is required to designate regions in the state for the purpose of providing regional state jail felony facilities and to adopt and enforce a regional allocation policy for the purpose of allocating the number of facilities and beds to each region. After several years of experience it has been determined that the data used to devise the existing regions was not suitably predictive of the number of people coming from each region. This amendment is necessary based on new data received, in order to better serve the areas with a more appropriate allocation of facilities. David P. McNutt, Deputy Director for Administrative Services has determined that there will be no fiscal implications for state or local government as a result of enforcing or administering the amendment as proposed. Mr. McNutt also has determined that the public benefit anticipated as a result of enforcing the amendment as proposed will be a more appropriate allocation of facilities to areas that are to be served. There will be no effect on small businesses. There is no anticipated economic cost to individuals required to comply with the amendment as proposed. Comments should be directed to Tom Bates, Division Director, State Jail Division, Texas Department of Criminal Justice, P.O. Box 13084, Austin, Texas 78711. Written comments from the general public should be received within 30 days of the publication of this proposal. The amendment is proposed under the Government Code, sec.492.013, which grants general rulemaking authority; and Government Code, sec.507.003 and sec.507.004, which provides the Department with the authority to designate regions for allocation of admission to the State Jail Division. Cross reference to Statute: Government Code, sec.507.003 and sec.507.004. sec.157.4. Designation of Regions. (a) (No change.) (b) Based on these factors and any other factors deemed relevant by the board, the board designates a total of nine
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          [13] regions in the state for the purpose of providing regional state jail felony facilities.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            [, with the six largest judicial districts (each of which serves a municipality of 400,000 or more) being designated as separate regions.] The following table lists the nine regions and the municipalities to be served per region.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Figure: 37 TAC sec.157.4(b) The Agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Filed with the Office of the Secretary of State on July 27, 1998. TRD-9811815 Carl Reynolds General Counsel Texas Department of Criminal Justice Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 463-9693 PART XI. Texas Juvenile Probation Commission CHAPTER 346.Case Management Standards SUBCHAPTER A.Case Planning and Supervision 37 TAC sec.sec.346.1-346.5 The Texas Juvenile Probation Commission proposes new sec.346.1-sec.346.5, concerning case management standards for juvenile justice practitioners. The standards provide uniform procedures for planning and managing probation caseloads. Lisa Capers, Deputy Executive Director and General Counsel, has determined that for the first five year period the standards are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the new standards. Ms. Capers has also determined that for each year of the first five years the new standards are in effect, the public benefit anticipated as a result of enforcement will be to ensure the delivery, quality, and uniformity of probation services throughout the state. There are no anticipated economic costs to persons who are required to comply with these standards as proposed. There will be no effect on small businesses. Comments on the proposed standards may be submitted to Maribeth Powers at the Texas Juvenile Probation Commission, P. O. Box 13547, Austin, Texas 78711. The standards are proposed under sec.141.042 of the Texas Human Resource Code, which provides the Texas Juvenile Probation Commission with the authority to adopt reasonable rules, including those which provide uniform procedures for caseload management and which provide minimum standards for juvenile boards. No other code or article is affected by these new standards. sec.346.1.Definitions. The following words or terms, when used in this subchapter, shall have the following meanings unless the context clearly indicates otherwise: (1) Assessment. Assessment is the process by which relevant and valid information is compiled in order to determine the juvenile's needs, risk of offending, strengths, and weaknesses. The assessment process is intended to assist the supervising juvenile probation field officer in developing and implementing an effective case plan, appropriate level of supervision, and utilization of appropriate resources. (2) Case Planning. Case planning involves the process of determining the post- adjudication needs of a juvenile. This includes all appropriate and available assessment and intake information, SJS findings, preliminary investigation information, family dynamics, school history, and victim impact statements. A written case plan outlines services to be provided during the juvenile's term of court ordered probation. Case planning also includes the reassessment, reevaluation, and review of the juvenile's risks, needs and initial case plan, in order to make any subsequent changes necessary to best meet the juvenile's status and circumstances over time. (3) Comprehensive Assessment Instrument (COMPASS). An instrument developed by the Texas Juvenile Probation Commission that assesses the juvenile's needs in the areas of mental health, education and family domains and the juvenile's risk of reoffending. (4) Formal Intake Interview. The interview with the juvenile who is the subject of the referral and the juvenile's parent, guardian or custodian wherein the intake officer or juvenile probation officer develops a dispositional recommendation for the juvenile's case. The formal intake interview occurs subsequent to the formal referral. (5) Formal Referral. A referral of a juvenile to the juvenile court for conduct defined in Texas Family Code, Section 51.03 that results in a face to face interview between the juvenile and the authorized staff of the juvenile probation department. (6) Progressive Sanctions Assigned Level. The level of sanctions actually assigned to a juvenile by the juvenile court that corresponds with the progressive sanctions guidelines contained in Chapter 59, Texas Family Code. (7) Exit Plan. The exit plan is the written document developed for each juvenile that identifies the juvenile's needs for post-supervision reintegration and specifies the community resources available to meet those needs. The purpose of the exit plan is to facilitate a continuum of community services to the juvenile and the juvenile's family after probation supervision ends. (8) Strategies in Juvenile Supervision (SJS)©. SJS is a case assessment and correctional management process designed to provide a structured method for gathering and organizing information about the juvenile and translating that information into appropriate case management strategies. (9) Supervision. Supervision involves the case management of a juvenile by the assigned juvenile probation supervising field officer or designee through contacts (face to face, telephone, office, home, collateral) with the juvenile, juvenile's family, and other case planning participants. (10) Title IV-E Standards. Standards promulgated by the Texas Juvenile Probation Commission related to the federal foster care reimbursement program as detailed in Chapter 347, Title 37 Texas Administrative Code. sec.346.2.Assessment. (a) A TJPC Comprehensive Assessment Instrument (COMPASS), or an assessment tool approved by TJPC, shall be completed for all juveniles who receive a disposition from the juvenile court or juvenile probation department. If the COMPASS (or a comparable instrument approved by TJPC) has been completed within the previous six months and contained in the juvenile's case record, the department is not required to complete an additional assessment. (1) Time of Assessment. The assessment instrument shall be administered at the formal intake interview. (2) Administration of Instrument. The instrument shall be administered by a certified juvenile probation officer who conducts the formal intake interview. (b) A Strategies in Juvenile Supervision (SJS)© worksheet shall be completed on all juveniles under court ordered supervision who are assigned to Progressive Sanctions levels four and five. The SJS worksheet shall be completed subsequent to the disposition of the juvenile's case but prior to the formulation of the written case plan. The juvenile probation supervising field officer should administer the SJS worksheet. This standard will be effective beginning January 1, 1999. sec.346.3.Case Planning and Review. (a) Case Plan. A written case plan shall be developed and implemented for juveniles assigned to court-ordered Progressive Sanctions levels two through five. The written case plan shall be developed with all appropriate and available parties present and participating including, but not limited to, the juvenile; any parent, guardian, or custodian of the child; and the supervising juvenile probation field officer. A written case plan for each juvenile assigned to court-ordered Progressive Sanctions level two shall be developed within 30 calendar days of the juvenile's disposition. Written case plans for juveniles assigned to Progressive Sanctions levels three through five shall be developed within 60 calendar days of the disposition. The original case plan shall be maintained in the juvenile's case file. Copies of the written case plan shall be provided to the juvenile and the juvenile's parent, guardian, or custodian. Mandatory timelines for compliance with this standard are: (1) Beginning January 1, 1999 a SJS worksheet and case plan shall be completed on all juveniles assigned to Progressive Sanctions Levels four and five; (2) Beginning September 1, 1999, a case plan shall be completed on all juveniles assigned to Progressive Sanctions Level three; (3) Beginning September 1, 2000, a case plan shall be completed on all juveniles court-ordered to Progressive Sanctions Level two cases. (b) Case Review. It is recommended that written case plans be reviewed every 90 days after implementation of the initial case plan or at any time when significant changes take place in the juvenile's situation. The juvenile and at least one parent, guardian or custodian shall be present for the case review. The written case plan shall be revised to address any changes in risks and needs identified during the review process. Upon acceptance a juvenile's case from other county for courtesy supervision, a review of the current written case plan shall be conducted by the receiving county in accordance with this section. All original revised case plans shall be maintained in the juvenile's case file. Copies of the revised written case plan shall be provided to the juvenile and the juvenile's parent, guardian, or custodian. This does not apply to Title IV-E cases, which shall comply with Title IV-E standards. The case review, with appropriate documentation in the case file, shall discuss and consider the following: (1) Appropriateness of the juvenile's current level of supervision and services; (2) Extent of compliance with the individualized case plan; (3) Extent of compliance with the conditions of probation; (4) Extent of progress made with the juvenile and family toward solving or reducing the factors that necessitated the juvenile's placement on probation; (5) A projection of a likely date by which the juvenile may be ready for court- ordered release from probation supervision; and (6) Services accessed, offered or provided to the juvenile and family to address risks and needs identified on the COMPASS or equivalent assessment tool. sec.346.4.Supervision The level of supervision provided to a juvenile by the probation department shall be defined by the results of the COMPASS (or other approved assessment tool), SJS (where applicable), and the juvenile's written case plan. A minimum of one face to face contact per month with the juvenile is mandatory unless otherwise noted in the case plan. sec.346.5. Exit Plan An exit plan is to be provided following the successful completion of a juvenile's probation period. A written exit plan shall be developed within 30 days prior to the juvenile's scheduled release from probation. The written exit plan shall be formulated by all involved and available parties. The original exit plan shall be placed in the juvenile's case file. Copies of the exit plan shall be provided to the juvenile and the juvenile's parent, guardian, or custodian. The exit plan shall include a copy of the notification of the juvenile of his/her sealing rights as required by the Texas Family Code, sec.58.003(i). 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 July 22, 1998. TRD-9811572 Lisa Capers Deputy Executive Director and General Counsel Texas Juvenile Probation Commission Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 424-6681 TITLE 40. SOCIAL SERVICES AND ASSISTANCE PART I. Texas Department of Human Services CHAPTER 3. Income Assistance Services The Texas Department of Human Services (DHS) proposes to amend sec.3.704, concerning types of resources, and sec.3.902, concerning types of income, in its Income Assistance Services chapter. The purpose of the amendments is to comply with an agency initiative and the Program Simplification Workgroup relating to simplification of the lump sum payments policies in the Temporary Assistance for Needy Families (TANF) program, and to add policy to TANF as a result of increased national and statewide interest in the establishment of a new concept known as Individual Development Accounts (IDAs). The change is to count lump sum payments received once a year or less frequently as a resource in the month received rather than as income in the month received and projecting future months of ineligibility, and to address how staff will treat IDAs. An IDA is similar to a savings account and enables individuals to save earned income to pay for a college education, to purchase a home, or to start a business. Eric M. Bost, commissioner, has determined that for the first five-year period the proposed sections will be in effect there will be no fiscal implications for state or local governments as a result of enforcing or administering the sections. Mr. Bost also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of enforcing the sections will be that IDAs will allow the private sector an opportunity to participate in welfare reform, and where feasible (and without being more restrictive), TANF policies will be made compatible with the current Food Stamp policies. Current data indicates that the population that this policy is applied to is minimal statewide and will not impact current workload. However, applying one policy for determining lump sum payments for both TANF and Food Stamp cases will greatly simplify the process. It is not anticipated that these changes will affect small businesses. These changes are technical in nature and neither drastically increase or decrease client eligibility/benefits to the point that local businesses would be impacted. There is no anticipated economic cost to persons who are required to comply with the proposed sections. Questions about the content of this proposal may be directed to Rita King at (512) 438-4148 in DHS's Client Self-Support Services Department. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-314, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register. SUBCHAPTER G. Resources 40 TAC sec.3.704 The amendments are proposed under the Human Resources Code, Title 2, Chapters 22 and 31, which provides the department with the authority to administer public and financial assistance programs. The amendments implement the Human Resources Code, sec.sec.22.001-22.030 and sec.sec.31.001-31.0325. sec.3.704. Types of Resources. (a) Temporary Assistance for Needy Families (TANF) [- Countable Resources]. The [Texas Department of Human Services (DHS) counts the] following are countable
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                resources in TANF: (1)-(3) (No change.) (4)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Lump sum payments. DHS counts lump sum payments received once a year or less frequently as resources in the month received (unless specifically excluded by other federal laws).
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (5)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      [(4)]Nonliquid resources. DHS counts nonliquid resources such as personal property, licensed and unlicensed vehicles, buildings, land, and any other property not specifically exempt; and (6)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        [(5)]Real property. DHS counts the value of real property unless otherwise exempt. (b) Temporary Assistance for Needy Families (TANF) [- Excludable Resources]. Exclusions from
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          [DHS excludes the following] resources in TANF are
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            : (1)-(9) (No change.) [(10) Lump sum payments. DHS counts income tax refunds as resources as stipulated in 45 Code of Federal Regulations sec.233.20(a)(3)(iv)(E) effective on August 1, 1996, and the Social Security Act as amended by Title I of Public Law 104-193, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.] (10)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              [(11)]Prepaid burial insurance. DHS exempts one prepaid burial insurance policy, prepaid funeral plan, or prepaid funeral agreement with a cash value of $1,500 or less for each member of the certified group. (11)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                [(12)] Personal possessions. DHS exempts personal possessions such as clothing, jewelry, furniture, livestock, and farm equipment, if used to meet personal needs essential for daily living. (12)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  [(13)] Reimbursements. DHS counts reimbursements as a resource in the month after receipt, but exempts reimbursements for repairing or replacing a lost or damaged resource which would not otherwise affect eligibility if the applicant uses the reimbursement for the intended purpose. (13)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    [(14)] Resources of an alien's sponsor. DHS determines the sponsor's countable resources in the same manner as the applicant's. DHS reduces the total value of the sponsor's resources by $1,500 and considers the remainder available to the alien. (14)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      [(15)] Resources exempted by federal law. DHS exempts government payments by the Individual and Family Grant Program or the Small Business Administration provided to rebuild a home or replace personal possessions damaged in a disaster, if the household is subject to legal sanction if the funds are not used as intended. DHS exempts payments made under the following Acts: (A) Alaska Native Claims Settlement Act (Public Law 92-203, as amended by Public Law 100-241); (B) Sac and Fox Indian Claims Agreement; (C) Grand River Band of Ottawa Indians; (D) Passamaquoddy Tribe, the Penobscot Nation, and the Houlton Band of Maliseet Indians received according to the Maine Indian Claims Settlement Act of 1980; (E) Confederated Tribes and Bands of the Yakima Indian National and the Apache Tribe of the Mescalero Reservation received from the Indian Claims Commission; (F) Seneca Nation Settlement Act of 1990 (Public Law 101-503); (G) DHS exempts payments from Indian lands held jointly with the tribe or land that can be sold only with approval of the Bureau of Indian Affairs; (H) Navajo or Hopi Tribes (Public Law 93-531); (I) DHS exempts reimbursements from the Uniform Relocation Assistance and Real Properties Acquisition Policy Act of 1970; and (J) DHS exempts payments or allowances made under any federal law for the purpose of energy assistance. (K)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Pursuant to the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA), DHS excludes an individual development account (IDA) that meets the requirements of Section 404(h) of PRWORA.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          (15)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            [(16)] Retirement accounts. DHS exempts money in retirement, vested retirements, and 401K accounts, even if it is accessible with a penalty. (16)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              [(17)] Vehicles used for transportation. (A) For clients who are members of the State Welfare Reform Control Group described in sec.3.6004 of this title, (relating to Applicability of Aid to Families with Dependent Children (AFDC) Policies Resulting from Human Resources Code sec.31.0031, Dependent Child's Income; Human Resources Code sec.31.012, Mandatory Work or Participation in Employment Activities Through the Job Opportunities and Basic Skills Training Program; Human Resources Code sec.31.014, Two-Parent Families; and Human Resources Code sec.31.032, Investigation and Determination of Eligibility), DHS exempts the value of one vehicle owned and used by the certified group for transportation if the equity is less than $1,500. If the equity exceeds $1,500, DHS counts the excess as a resource. DHS counts the equity of all other vehicles. (B) For all other TANF clients, DHS exempts licensed vehicles as specified in Human Resources Code sec.31.032(d)(2). (c)-(d) (No change.) The Agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Filed with the Office of the Secretary of State on July 24, 1998. TRD-9811775 Glenn Scott General Counsel, Legal Services Texas Department of Human Services Earliest possible date of adoption: October 1, 1998 For further information, please call: (512) 438-3765 SUBCHAPTER I. Income 40 TAC sec.3.902 The amendment is proposed under the Human Resources Code, Title 2, Chapters 22 and 31, which provides the department with the authority to administer public and financial assistance programs. The amendment implements the Human Resources Code, sec.sec.22.001-22.030 and sec.sec.31.001-31.0325. sec.3.902. Types of Income. (a) Temporary Assistance for Needy Families (TANF) [ - Countable Income]. The Texas Department of Human Services (DHS) counts the following as income: (1)-(13) (No change.) (14) Recurring
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                [Nonrecurring] Lump Sum Payments. DHS counts lump sum payments as income in the month received if they are received or anticipated more often than once a year. DHS exempts lump sums received once a year or less, unless specifically listed as income, and counts these lump sum payments as a resource in the month received. If a lump sum is provided to assist a household with burial, legal, or medical bills, or damaged/lost possessions, DHS reduces the countable amount of the lump sum by any amount earmarked and used for these items.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  [as stipulated in 45 Code of Federal Regulations sec.233.20(a)(3)(ii)(F) effective on August 1, 1996, and the Social Security Act as amended by Title I of Public Law 104-193, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, except when shortening the period of ineligibility. For this procedure DHS shortens the ineligibility period only if:] [(A) the lump sum becomes unavailable because it is lost, stolen, or become inaccessible to the certified group, or] [(B) the family faces a life-threatening situation. Life threatening is defined as dire financial need. The family has dire financial need if the amount remaining from the lump sum payment, plus other countable net income and resources, are less than the budgetary needs figure for the family's size. The family must prove that the lump sum payment was or will be spent on the items included in the department's standard of need (excluding recreation), medical expenses, or both.] (15)-(28) (No change.) (b) Temporary Assistance for Needy Families (TANF) [- Excludable Income]. DHS excludes the following as income: (1)-(20) (No change.) (c)-(d) (No change.) The Agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Filed with the Office of the Secretary of State on July 24, 1998. TRD-9811776 Glenn Scott General Counsel, Legal Services Texas Department of Human Services Earliest possible date of adoption: October 1, 1998 For further information, please call: (512) 438-3765 CHAPTER 15. Medicaid Eligibility SUBCHAPTER D. Resources 40 TAC sec.15.430 The Texas Department of Human Services (DHS) proposes to amend sec.15.430, concerning transfer of assets, in its Medicaid eligibility chapter. The purpose of the amendment is to clarify the definition of disabled child for transfer of assets purposes. Eric M. Bost, commissioner, has determined that for the first five-year period the proposed amendment will be in effect there will be no fiscal implications for state or local governments as a result of enforcing or administering the amendment. Mr. Bost also has determined that for each year of the first five years the amendment is in effect the public benefit anticipated as a result of enforcing the amendment will be that clients will not be penalized because of incorrect application of policy. The rule clarifies existing policy and has no impact on small or large businesses or providers. There is no anticipated economic cost to persons who are required to comply with the proposed amendment. Questions about the content of this proposal may be directed to Judy Coker at (512) 438-3227 in DHS's Long-Term Care section. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-318, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register The amendment is proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs and under Texas Government Code sec.531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds. The amendment implements sec.sec.22.001-22.030 and 32.001-32.042 of the Human Resources Code. sec.15.430. Transfer of Assets. (a)-(c) (No change.) (d) Exceptions to transfers of assets. (1) Transfer of the client's home does not result in a penalty when the title is transferred to his: (A) (No change.) (B) minor or disabled child (a disabled child must meet Social Security Administration disability criteria; there is no age limit for a disabled child for transfer of assets purposes
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    ); (C)-(D) (No change.) (2) Assets, including the client's home, may be transferred without resulting in a penalty when: (A) (No change.) (B) transferred to the client's child, or to a trust (including an exception trust described in sec.15.417(f) of this title (relating to Trusts--August 11, 1993, and After)) established solely for the benefit of the client's child. The child must meet Social Security Administration disability criteria. There is no age limit for a disabled child for transfer of assets purposes
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      ; (C)-(H) (No change.) (3)-(4) (No change.) (e)-(m) (No change.) The Agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Filed with the Office of the Secretary of State on July 24, 1998. TRD-9811777 Glenn Scott General Counsel, Legal Services Texas Department of Human Services Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 438-3765 CHAPTER 69. Contracted Services SUBCHAPTER L. Contract Administration 40 TAC sec.69.212 The Texas Department of Human Services (DHS) proposes new sec.69.212, concerning year 2000 responsibilities, in its Chapter 69, Contracted Services. The purpose of the new section is to require DHS contractors and nursing facilities to make reasonable efforts to ensure against any problems that may result from Year 2000 computer problems. Eric M. Bost, commissioner, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Bost also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be to protect the public by requiring DHS contractors and nursing facilities to prepare for Year 2000 eventualities. The new section will not generate any additional costs for businesses, large or small, because preparing for Year 2000 changes is part of the normal cost of doing business. There is no anticipated economic cost to persons who are required to comply with the proposed section. Questions about the content of this proposal may be directed to Susan Syler at (512) 438-3111 in DHS's Long Term Care Policy Section. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-320, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register The new section is proposed under the Human Resources Code, Title 2, Chapter 22, which authorizes the department to administer public assistance programs. The new section implements the Human Resources Code, sec.sec.22.001-22.033. sec.69.212. Year 2000 Responsibilities. In respect to all contracts in effect after December 31, 1999: All services provided under contract with the Texas Department of Human Services are required, as a condition of the contract, not to constitute a threat to the health and safety of residents as a result of computer software, firmware, or computer logic unable to recognize different centuries or more than one century on or after January 1, 2000. The Agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Filed with the Office of the Secretary of State on July 24, 1998. TRD-9811779 Glenn Scott General Counsel, Legal Services Texas Department of Human Services Earliest possible date of adoption: September 6, 1998 For further information, please call: (512) 438-3765