TITLE 16.ECONOMIC REGULATION

Part 1. RAILROAD COMMISSION OF TEXAS

Chapter 20. ADMINISTRATION

Subchapter C. GIFTS TO THE COMMISSION

16 TAC §20.201

The Railroad Commission proposes amendments to §20.201, concerning gifts to the commission. Texas Civil Statutes, Article 6447i, authorizes the commission to apply for, request, solicit, contract for, receive, accept, and administer gifts, grants, and donations of money or other assistance from any source to carry out any commission purpose or power authorized by law. Texas Natural Resources Code, §113.243(e), permits the commission to apply for, request, solicit, contract for, receive, and accept gifts, grants, and other assistance from any source for the purposes of Subchapter I of Chapter 113. Texas Government Code, §2255.001, requires a state agency that is authorized by statute to accept money from a private donor to adopt rules governing the relationship between the donor and the agency and its employees. Texas Government Code, §572.051, provides guidance to state officials and employees who may be accepting gifts on behalf of their agencies.

At the time the commission initially adopted §20.201, Texas Government Code, Chapter 575, required an agency to accept a gift by majority vote in an open meeting. Senate Bill 183 (76th Legislature, Regular Session) amended Texas Government Code, §575.003, to allow a state agency to acknowledge acceptance of a gift valued at $500 or more in an open meeting not later than the 90th day after the gift is accepted. In light of this statutory change, and a change in the management structure of the commission that eliminated the position of executive director, the commission proposes to amend §20.201.

The proposed amendments to §20.201 incorporate the commission's organizational change by placing the process for the commission's evaluation and acceptance of a gift within the purview of the Director of Finance and Administration, rather than the Executive Director. The process for making a gift remains unchanged from that originally established in §20.201, except that the proposed amendments specifically delegate to the Director of Finance and Administration the authority to accept all gifts on behalf of the commission, including those valued at $500 or more, and set out the procedure by which the commission will acknowledge receipt of gifts valued at $500 or more not later than 90 days after acceptance of the gift.

The Director of Finance and Administration will make a determination whether to accept a proposed gift or not, and will notify the donor and the appropriate division director in writing. If the estimated value of an accepted gift is $500 or more, the director will ensure that the gift is acknowledged by the commission at an open meeting not later than 90 days after acceptance.

In addition, to avoid possible confusion regarding whether travel expenses fall within the meaning of the term "gift," the commission proposes to amend the definition of that term in subsection (a)(6). The change occurs in the second sentence of the definition, which offers examples of things that are not gifts. By changing the word "person's" to "non-employee's," the commission seeks to clarify two points: first, that when non-employees speak at commission-sponsored conferences, seminars, etc., it is not considered a gift to the commission, primarily because that activity is as beneficial to the speaker as to the commission. Second, the change clarifies that the commission may accept as a gift to the agency travel expenses for an employee to attend training, a conference, or a seminar regardless of whether the employee participates as a speaker or presenter. Corresponding amendments are made on the gift form.

Kathy Pyka, Director of Finance and Administration, has determined that for each year of the first five years that the rule as proposed will be in effect, there may be fiscal implications for state government, which are anticipated to be minimal. The commission will receive a benefit from any donations of money or other assistance, and under the new procedure, will be able to accept and use such gifts sooner than would be possible under the current procedure. However, it is not possible to estimate whether any such gifts will be made or their value. There will be no fiscal implications for local government.

Ms. Pyka has also determined that the public benefit anticipated as a result of enforcing or administering the rule will be the opportunity for the commission to accept and immediately begin using gifts of money or other assistance which will aid the commission in carrying out its multiple duties. Proposed gifts will continue to be reviewed under guidelines that will ensure public confidence in the process.

The proposed amendments to §20.201 impose no additional costs of compliance for individuals, small businesses, or micro-businesses. All gift-giving to the commission is voluntary; therefore, no entity is compelled to participate in this process. There may be some benefit to individual, small business, or micro-business donors in learning sooner rather than later that a proposed gift is or is not accepted, but it is impossible to assess any such benefit in terms of a dollar amount.

Comments may be submitted to Mary Ross McDonald, Deputy General Counsel, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas, 78711-2967. The commission will accept comments for 30 days following publication of this proposal in the Texas Register .

The commission proposes the amendments to §20.201 under Texas Government Code, §575.003, which permits an agency to acknowledge acceptance of a gift by majority vote in an open meeting not later than the 90th day after the date the gift is accepted, and §2001.004, which requires state agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures; and Texas Civil Statutes, Article 6447, which authorizes the commission to make all rules necessary for its government and proceedings.

Texas Civil Statutes, Articles 6447 and 6447i; Texas Natural Resources Code, §113.243(e); Texas Government Code, §2255.001; and Texas Government Code, §572.051, Chapter 575, and §2001.004, are affected by the proposed amendments to §20.201.

Issued in Austin, Texas, on May 23, 2000.

§20.201.Gifts to the Commission.

(a)

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

(1)-(4)

(No change.)

(5)

Director--The Director of Finance and Administration.

(6)

Division director--The director of any commission division.

(7)

[ (5) ] Employee--A full-time or part-time employee of the commission.

(8)

[ (6) ] Gift--A donation of money, property, or other assistance conveyed to the commission and over which the commission has complete title, control, or discretion. The term does not include items that are temporarily in the commission's possession for testing or research purposes; a non-employee's [ person's ] participation as a speaker or presenter in a commission-sponsored conference or seminar; or payments made pursuant to Texas Natural Resources Code, §89.084.

(9)

[ (7) ] Inception of the case--The date an application, complaint, petition, statement of intent, or other request for commission action, ruling, or relief is determined to require a hearing or the date a matter is referred to the Office of General Counsel, whichever is earlier.

(10)

[ (8) ] Money--Cash or negotiable instruments.

(11)

[ (9) ] Other assistance--The gift of personnel or expertise in a particular professional or technical area.

(12)

[ (10) ] Party--A person or a state agency named or admitted as a party to a contested case pending before the commission.

(13)

[ (11) ] Person--An individual; a partnership, limited partnership, joint venture, cooperative, corporation, association, or any other business organization or entity; a trust; an estate; a public or private institution of higher education; or a state agency, county, municipality, council of government, school district or other governmental subdivision.

(14)

[ (12) ] Property--Real property or personal property, both tangible and intangible.

(b)

Terms and conditions. The commission may apply for, request, solicit, contract for, receive, accept, and administer gifts, grants, and donations of money or other assistance from any source to carry out any commission purpose or power authorized by law except as follows:

(1)

Neither the [ The ] commission nor its delegate shall [ not ] accept a gift from a party in a contested case during the period from the inception of the contested case until the 30th day after the date the decision in a contested case becomes final under Texas Government Code, §2001.144.

(2)

Neither the [ The ] commission nor its delegate shall [ not ] solicit or accept any gift:

(A)-(C)

(No change.)

(c)

Notice of intent to make a gift. A person wishing to make a gift to the commission shall file with the Director [ executive director ] a completed RRC Gift Form, Notice of Gift to Railroad Commission of Texas, or a letter including the following information:

Figure: 16 TAC §20.201(c)

(1)-(6)

(No change.)

(7)

The Director [ executive director ] shall forward the form or letter to the appropriate division director for review.

(d)

Division director review.

(1)

The division director to whom the Director [ executive director ] has forwarded a copy of the form or letter shall review the form or letter within 10 business days. The division director shall indicate on the form whether:

(A)

[ (1) ] the intended gift would assist the commission in carrying out its duties and, if so, how;

(B)

[ (2) ] the intended gift would provide a broad or general benefit to the commission in carrying out its purposes and powers that would exceed any particular benefit that the donor might realize as a result of making the gift;

(C)

[ (3) ] the division director agrees with the estimated value of the gift and, if not, the division director's estimate of the value of the gift and the reason for the difference of opinion; and

(D)

[ (4) ] the commission should accept the intended gift and, if not, the reasons the division director recommends against accepting the intended gift.

(2)

[ (5) ] The division director shall forward the form or letter to the Office of General Counsel for review.

(e)

Office of General Counsel review. Upon receipt of a form or letter from a division director, the Office of General Counsel shall review the form or letter within 10 business days regarding the intended donor's status as a party in any proceeding pending before the commission.

(1)

(No change.)

(2)

The Office of General Counsel shall forward the reviewed form or letter to the Director [ executive director ] for final review.

(f)

Director [ Executive director ] review. Upon receipt of a form or letter reviewed by a division director and the Office of General Counsel, the Director [ executive director ] shall review the form or letter within 10 business days to ensure that all information required by this section is included.

(1)

The Director [ executive director ] may request that the person filing the notice of intent to make a gift supply additional information regarding the donor, the intended gift, its estimated value, its usefulness to the commission, the donor's party status, or any other information that the Director [ executive director ] deems relevant to the intended gift.

(2)

The commission delegates to the Director the authority to accept or reject intended gifts using the standards and procedures set forth in this section.

(3)

[ (2) ] If the Director [ executive director ] finds all information on the form or letter to be complete and accurate [ satisfactory and the value of the gift is less than $500 ], the Director [ executive director ] shall either accept or reject [ approve ] the intended gift . The Director shall accept a gift by signing and dating the RRC Gift Form and forwarding [ shall forward ] copies of the form to the donor, the appropriate division director, the Finance and Administration Division, and the Office of General Counsel. The Director shall notify in writing the donor, the appropriate division director, the Finance and Accounting Division, the Office of General Counsel, and the commissioners of a decision to reject an intended gift, and shall include a brief statement of the reason(s) for the rejection.

(4)

[ (3) ] If the Director accepts a gift valued at [ executive director finds all information on the form or letter to be satisfactory and the value of the gift is ] $500 or more, the Director [ executive director ] shall:

(A)

give notice that the commission will acknowledge the acceptance [ consider the matter ] at an open meeting; and

(B)

prepare a document by which the commission may acknowledge acceptance of a gift [ request that the Office of General Counsel draft an order consistent with the staff recommendation regarding acceptance of the intended gift ].

(5)

[ (4) ] In an open meeting, the commission shall consider the acknowledgment of an accepted gift and [ intended gift and shall vote on whether to accept the gift. The commission ] shall commemorate the acknowledgment [ vote ] by signing the prepared document [ an order ].

(g)

Upon a Director [ commission order or an executive director ] decision accepting a gift, the Director [ executive director ] shall ensure that the commission staff takes all appropriate steps to receive the gift and to account for it properly in the records of the commission.

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

Filed with the Office of the Secretary of State, on May 24, 2000.

TRD-200003652

Mary Ross McDonald

Deputy General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: July 9, 2000

For further information, please call: (512) 475-1295