TITLE 34.PUBLIC FINANCE

Part 6. TEXAS MUNICIPAL RETIREMENT SYSTEM

Chapter 127. MISCELLANEOUS RULES

34 TAC §127.6

The Texas Municipal Retirement System proposes new §127.6 regarding acceptance of eligible rollover distributions or trustee-to-trustee transfers from other retirement plans as payment for system service credit.

The new section specifies the types of plans from which the Texas Municipal Retirement System may accept funds as payment when a member is otherwise eligible to establish service credit in the Texas Municipal Retirement System. The purpose of the new section is to enable the Texas Municipal Retirement System to accept a rollover or transfer of funds from any type of plan permitted under the federal tax law as payment for system service credit a member is otherwise eligible to establish. The Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA"), Public Law 107-16 (June 7, 2001), expanded the ability to rollover or transfer funds from one type of retirement plan to another, effective January 1, 2002.

Gary W. Anderson, Executive Director, has determined that for each year of the first five-year period the rule is in effect there will be no fiscal implications to state or local governments as a result of enforcing or administering the rule.

Mr. Anderson has also determined that for each year of the first five years the rule is in effect the public benefit anticipated will be that members will have more avenues available for the payment of system service credit they are eligible to establish. There will be no effect on small businesses. There are no anticipated economic costs to the persons who are required to comply with the rule as proposed.

Comments on the proposal may be submitted to Gary W. Anderson, Executive Director, Texas Municipal Retirement System, P.O. Box 149153, Austin, Texas 78714-9153.

The new section is proposed under Government Code, Chapter 855, §855.102, which provides the Board of Trustees of the Texas Municipal Retirement System with the authority to adopt rules necessary or desirable for the efficient administration of the system. The new section is also adopted pursuant to Government Code, Chapter 855, §855.607 which authorizes the Board of Trustees of the Texas Municipal Retirement System to adopt rules necessary for the plan to be a qualified plan.

No other statute or article is affected by the proposal.

§127.6. Acceptance of Rollovers and Transfers.

(a) The system may accept the funds described in subsections (b) and (c) of this section, subject to the restrictions of this section.

(b) If permitted under and subject to the provisions of federal law, the system may accept an eligible rollover distribution from another eligible retirement plan in payment of all or a portion of any deposit a member is permitted under applicable law to make with the system for service credit.

(1) An "eligible rollover distribution" is any distribution of all or any portion of the balance to the credit of the member from an eligible retirement plan. An eligible rollover distribution does not include the following:

(A) any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the member or the joint lives (or joint life expectancies) of the member and the member's designated beneficiary, or for a specified period of ten years or more;

(B) any distribution to the extent such distribution is required under Internal Revenue Code §401(a)(9);

(C) any distribution which is made upon hardship of the member; or

(D) the portion of any distribution that is not includible in gross income.

(2) An "eligible retirement plan" is any program defined in Internal Revenue Code §401(a)(31) and §402(c)(8)(B), from which the member has a right to an eligible rollover distribution, as follows:

(A) an individual retirement account under Internal Revenue Code §408(a);

(B) an individual retirement annuity under Internal Revenue Code §408(b) (other than an endowment contract);

(C) a qualified trust;

(D) an annuity plan under Internal Revenue Code §403(a);

(E) an eligible deferred compensation plan under Internal Revenue Code §457(b) which is maintained by an eligible employer under Internal Revenue Code §457(e)(1)(A); and

(F) an annuity contract under Internal Revenue Code §403(b).

(c) If permitted under and subject to the provisions of federal law, the system may accept a direct trustee-to-trustee transfer of funds from a plan described under §403(b) or §457(b) of the Internal Revenue Code in payment of all or a portion of any deposit a member is permitted to make with the system for service credit.

(d) In order to authorize the rollover or transfer of funds described in this section, a member shall provide or cause to be provided to the system information sufficient for the system to reasonably conclude that the contribution is a valid rollover or direct trustee-to-trustee transfer as permitted under federal tax law. If the system later determines that a contribution was an invalid rollover or direct trustee-to-trustee transfer or otherwise not permitted under federal tax law, the system may take any action appropriate or required by the Internal Revenue Code or regulations issued thereunder, including return of the invalid contribution and, if applicable, any earnings attributed thereto to the member within a reasonable time after the determination and cancellation of any credit purchased with the returned amounts.

(e) The system shall construe and administer this section in a manner such that the plan will be considered a qualified plan under §401(a) of the Internal Revenue Code of 1986, (United States Code, Title 26, §401).

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 January 25, 2002.

TRD-200200487

Gary W. Anderson

Executive Director

Texas Municipal Retirement System

Earliest possible date of adoption: March 10, 2002

For further information, please call: (512) 225-3714


Part 12. STATE EMPLOYEE CHARITABLE CAMPAIGN

Chapter 325. GENERAL COMMITTEE PROVISIONS

34 TAC §§325.3, 325.5, 325.7

The State Employee Charitable Campaign Policy Committee (SPC), proposes new §§325.3, 325.5, and 325.7, concerning general committee provisions. These new sections are proposed to codify existing SPC policy regarding the conduct and activities of the SPC members. Section 325.3 identifies the SPC officers; §325.5 provides requirements for SPC meetings; and §325.7 sets out the SPC policy regarding travel expenses, based on the limitations provided in the SECC statute.

Steve Robinson, Chair of the State Employee Charitable Campaign Policy Committee, has determined that for the first five-year period the rules will be in effect, there will be no significant fiscal impact on the state or units of local government.

Mr. Robinson also has determined that for each year of the first five years these rules are in effect, the public benefit anticipated as a result of enforcing the rules will be clarification and formalization of existing SPC policy. There will be no effect on small or micro businesses. There are no significant anticipated economic costs to persons who are required to comply with the proposed rules.

Comments on the proposal may be submitted to Steve Robinson, Executive Director, Texas Youth Commission, Attn: Chair, State Policy Committee, P.O. Box 4260, Austin, Texas 78765.

These new sections are proposed under Government Code, §659.139, which provides that the State Employee Charitable Campaign (SECC) must be managed fairly and equitably in accordance with the SECC law and the policies and procedures established by the state policy committee. The SPC interprets this statute to authorize the adoption of rules to the extent that the policies and procedures adopted are of general applicability and affect the rights of third parties, namely charitable organizations, local campaign managers, local employee committees, the state advisory committee, the state campaign manager, and state employees.

The other statute, article, or section affected by the proposed rules is Government Code, §659.145, regarding terms and compensation of committee members.

§325.3.Officers.

(a) The chair of the State Employee Charitable Campaign Policy Committee (SPC) will be elected by vote of SPC members.

(b) Other officers will be elected at the discretion of the chair.

§325.5.Meetings.

Meetings will be scheduled at the discretion of the chair of the State Employee Charitable Campaign Policy Committee.

§325.7.Travel Expenses.

(a) State Employee Charitable Campaign Policy Committee (SPC) and State Employee Charitable Campaign Advisory Committee (SAC) members make their own travel arrangements and seek reimbursement from the State Employee Charitable Campaign (SECC) manager.

(b) Reimbursements are made at the State of Texas rates for per diem, airfare, car allowances, hotel and lodging expenses, cab fare, and parking with the following special provisions.

(1) Airfare. Airfare is reimbursed at the average coach airfare at two week advance rate unless approved by the SPC chair.

(2) Mileage. Mileage is reimbursed as provided in the Texas Mileage Guide .

(c) Original receipts are required for all reimbursements, with the exception of per diem and parking using a parking meter.

(d) Expenses will be reimbursed within 21 days of receipt of the expense reimbursement form. The reimbursement form must be received in the SECC manager's office by 30 days following the SPC or SAC meeting to which the expenses pertain.

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 January 18, 2002.

TRD-200200287

Steve Robinson

Chair, Policy Committee

State Employee Charitable Campaign

Earliest possible date of adoption: March 10, 2002

For further information, please call: (512) 463-3699


Chapter 326. STATE CAMPAIGN MANAGEMENT

34 TAC §326.1

The State Employee Charitable Campaign Policy Committee (SPC), proposes new §326.1, concerning state campaign management. The new section is proposed to codify existing SPC policy regarding campaign expenses that may be charged by a state campaign manager. Section 326.1 sets forth the nature of and the maximum amount of expenses that may be charged to the campaign by a state campaign manager.

Steve Robinson, Chair of the State Employee Charitable Campaign Policy Committee, has determined that for the first five-year period the rule will be in effect, there will be no significant fiscal impact on the state or units of local government.

Mr. Robinson 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 clarification and formalization of existing SPC policy. There will be no effect on small or micro businesses. There are no significant anticipated economic costs to persons who are required to comply with the proposed rule.

Comments on the proposal may be submitted to Steve Robinson, Executive Director, Texas Youth Commission, Attn: Chair, State Policy Committee, P.O. Box 4260, Austin, Texas 78765.

The new rule is proposed under Government Code, §659.139, which provides that the State Employee Charitable Campaign (SECC) must be managed fairly and equitably in accordance with the SECC law and the policies and procedures established by the state policy committee. The SPC interprets this statute to authorize the adoption of rules to the extent that the policies and procedures adopted are of general applicability and affect the rights of third parties, namely charitable organizations, local campaign managers, local employee committees, the state advisory committee, the state campaign manager, and state employees.

The other statute, article, or section affected by the proposed rule is Government Code, §659.148, regarding fees.

§326.1.10% Cap.

The only fee a campaign manager may charge is for actual campaign expenses that are reasonable and necessary. The fee must be based on the combined expenses of the state campaign manager and each local campaign manager and may not exceed 10% of the total amount collected in the state employee charitable campaign unless the State Policy Committee approves a higher amount to accommodate reasonable documented costs.

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 January 18, 2002.

TRD-200200288

Steve Robinson

Chair, Policy Committee

State Employee Charitable Campaign

Earliest possible date of adoption: March 10, 2002

For further information, please call: (512) 463-3699


Chapter 327. LOCAL CAMPAIGN MANAGEMENT

34 TAC §327.1

The State Employee Charitable Campaign Policy Committee (SPC), proposes new §327.1, concerning local campaign management. The new section is proposed to codify existing SPC policy regarding campaign expenses that may be charged by local campaign managers. Section 327.1 sets forth the nature of and the maximum amount of expenses that may be charged to the campaign by a local campaign manager.

Steve Robinson, Chair of the SPC, has determined that for the first five-year period the section is in effect there are no foreseeable fiscal implications for state or local governments as a result of enforcing or administering the section.

Mr. Robinson 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 clarification and formalization of existing SPC policy. There will be no effect on small or micro businesses. There are no anticipated economic costs to persons who are required to comply with the section as proposed.

Interested persons may submit comments on the proposal to Steve Robinson, Executive Director, Texas Youth Commission, P.O. Box 4260, Austin, Texas 78765, ATTN: Chair, State Policy Committee.

The new rule is proposed under Government Code, §659.139, which provides that the state employee charitable campaign must be managed fairly and equitably in accordance with the SECC law and the policies and procedures established by the state policy committee. The SPC interprets this statute to authorize the adoption of rules to the extent that the policies and procedures adopted are of general applicability and affect the rights of third parties, namely charitable organizations, local campaign managers, local employee committees, the state advisory committee, the state campaign manager, and state employees.

The other statute, article, or section affected by the proposed rule is Government Code, §659.148, regarding fees.

§327.1.10% Cap.

The only fee a campaign manager may charge is for actual campaign expenses that are reasonable and necessary. The fee must be based on the combined expenses of the state campaign manager and each local campaign manager and may not exceed 10% of the total amount collected in the state employee charitable campaign unless the State Policy Committee approves a higher amount to accommodate reasonable documented costs.

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 January 18, 2002.

TRD-200200291

Steve Robinson

Chair, Policy Committee

State Employee Charitable Campaign

Earliest possible date of adoption: March 10, 2002

For further information, please call: (512) 463-3699


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

34 TAC §329.1, §329.3

The State Employee Charitable Campaign Policy Committee (SPC), proposes new §329.1 and §329.3, concerning audit and review requirements and the 25% administrative cost cap. These new rules codify existing SPC policy regarding the standards and criteria that the SPC will use to determine the eligibility of organizations to participate in the state employee charitable campaign and to be listed amongst other charitable organizations as being eligible to receive charitable contributions from state employees. Section 329.1 sets out the audit and other financial information that must be submitted to the SPC to determine eligibility. Section 329.3 restates the statutory maximum cap on the portion of an organization's revenue that may be spent on administrative expenses, provides a method for calculating administrative expenses and rounding off expenses to arrive at a percentage figure. Section 329.3 also provides factors the SPC may use to decide whether to issue an exemption from the administrative cap to an organization.

Steve Robinson, Chair of the State Employee Charitable Campaign Policy Committee, has determined that for the first five-year period the rules will be in effect, there will be no significant fiscal impact on the state or units of local government.

Mr. Robinson also has determined that for each year of the first five years these rules are in effect, the public benefit anticipated as a result of enforcing the rules will be clarification and formalization of existing SPC policy. There will be no effect on small or micro businesses. There are no significant anticipated economic costs to persons who are required to comply with the proposed rules.

Comments on the proposal may be submitted to Steve Robinson, Executive Director, Texas Youth Commission, Attn: Chair, State Policy Committee, P.O. Box 4260, Austin, Texas 78765.

These new sections are proposed under Government Code, §659.139, which provides that the State Employee Charitable Campaign (SECC) must be managed fairly and equitably in accordance with the SECC law and the policies and procedures established by the state policy committee. The SPC interprets this statute to authorize the adoption of rules to the extent that the policies and procedures adopted are of general applicability and affect the rights of third parties, namely charitable organizations, local campaign managers, local employee committees, the state advisory committee, the state campaign manager, and state employees.

The other statute, article, or section affected by the proposed rules is Government Code, §659.146, regarding general eligibility requirements and eligibility requirements for statewide participation.

§329.1.Audit and Review Requirements.

(a) To be eligible to participate in the state employee charitable campaign, if the charitable organization's budget:

(1) is not more than $100,000, the organization shall provide a completed Internal Revenue Service (IRS) Form 990 and an accountant's review that offers full and open disclosure of the organization's internal operations; or

(2) is greater than $100,000, shall be audited annually in accordance with generally accepted auditing standards of the American Institute of Certified Public Accountants.

(b) When a charitable organization submits an audit or accountant's review, a copy of the organization's most recent annual audit or accountant's review must be included with the application. The audit or accountant's review must cover the fiscal year ending not more than 18 months prior to the January of the campaign year in which the organization is applying for participation. The IRS Form 990 and audit or accountant's review must cover the same fiscal period. If the revenue and expenses on these two documents differ, the reconciliation must be included in the IRS Form 990 itself or include a letter of reconciliation submitted by the certified public accountant who completed the audit or accountant's review.

§329.3.25% Administrative Cost Cap.

(a) To be eligible to participate in a state employee charitable campaign (SECC), a charitable organization must not spend more than 25% of its annual revenue for administrative and fund raising expenses.

(b) The calculation method used to determine administrative costs will be as follows: Administrative expenses + fund raising costs divided by total revenue = percentage of revenue for administrative costs. For purposes of listing administrative costs in the state employee charitable campaign brochure, calculation of administrative costs will be carried out two places, rounded down if under 0.50, rounded up if 0.50 or over; however, if the costs are any amount over 25%, a temporary exemption by the State Employee Charitable Campaign Policy Committee (SPC) will be required for an organization to participate in a state employee charitable campaign.

(c) The SPC may grant a charitable organization a temporary exemption from the requirement of subsection (a) of this section if the committee finds that:

(1) the organization's administrative and fund raising expenses are reasonable under the circumstances; and

(2) the organization has a practical plan to reduce its administrative and fund raising expenses to no more than 25% of its annual revenue within the next three years.

(d) The SPC may grant a temporary exemption to an organization for up to three consecutive years.

(e) The SPC may consider factors to determine whether administrative and fund raising expenses incurred by a charitable organization are reasonable. The factors may include, but are not limited to:

(1) whether there has been a one-time, extraordinary expense and the reasons for that expense;

(2) whether there has been an unanticipated financial crisis or miscalculation and the reasons for that situation;

(3) the number of years the organization has been operating;

(4) whether the organization has recently changed the time periods that comprise its fiscal year; and

(5) whether the organization has changed management and the reasons for that change.

(f) Factors the SPC may consider to determine whether a plan to reduce expenses is practical may include, but are not limited to:

(1) whether the plan explains which expenses are expected to be lower in the future and explains why this is expected;

(2) whether corrective measures have already been instituted; and

(3) whether progress under a previously submitted plan has been made, if organization has been previously granted a temporary exemption.

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 January 18, 2002.

TRD-200200293

Steve Robinson

Chair, Policy Committee

State Employee Charitable Campaign

Earliest possible date of adoption: March 10, 2002

For further information, please call: (512) 463-3699


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

34 TAC §§330.1, 330.3, 330.5

The State Employee Charitable Campaign Policy Committee (SPC), proposes new §§330.1, 330.3, and §330.5, concerning eligibility criteria for local federations/funds, affiliated organizations, and local charitable organizations. These new rules codify existing SPC policy regarding the standards and criteria that local employee committees (LECs) use to determine the eligibility of organizations to participate in the state employee charitable campaign and to be listed amongst other charitable organizations as being eligible to receive charitable contributions from state employees. Section 330.1 sets out the audit and other financial information that must be submitted to the LEC to determine eligibility; §330.3 restates the statutory maximum cap on the portion of an organization's revenue that may be spent on administrative expenses, provides a method for calculating administrative expenses and rounding off expenses to arrive at a percentage figure. The section also provides factors the SPC may use to decide whether to issue an exemption from the administrative cap to an organization; §330.5 clarifies the statutory definition of "local charitable organization" by interpreting when an organization's office is deemed to be open, and providing a requirements to ensure state employees have access to the organization, and providing the LEC has discretion to verify an organization meets the definition of a local charitable organization.

Steve Robinson, Chair of the State Employee Charitable Campaign Policy Committee, has determined that for the first five-year period the rules will be in effect, there will be no significant fiscal impact on the state or units of local government.

Mr. Robinson also has determined that for each year of the first five years these rules are in effect, the public benefit anticipated as a result of enforcing the rules will be clarification and formalization of existing SPC policy. There will be no effect on small or micro businesses. There are no significant anticipated economic costs to persons who are required to comply with the proposed rules.

Comments on the proposal may be submitted to Steve Robinson, Executive Director, Texas Youth Commission, Attn: Chair, State Policy Committee, P.O. Box 4260, Austin, Texas 78765.

These new sections are proposed under Government Code, §659.139, which provides that the State Employee Charitable Campaign (SECC) must be managed fairly and equitably in accordance with the SECC law and the policies and procedures established by the state policy committee. The SPC interprets this statute to authorize the adoption of rules to the extent that the policies and procedures adopted are of general applicability and affect the rights of third parties, namely charitable organizations, local campaign managers, local employee committees, the state advisory committee, the state campaign manager, and state employees.

The other statute, article, or section affected by the proposed rules is Government Code, §659.131, which defines the term "local charitable organization" and provides certain eligibility criteria for the participation of such local charitable organizations in the charitable campaign.

§330.1.Audit and Review Requirements.

(a) To be eligible to participate in the state employee charitable campaign, if the charitable organization's budget:

(1) is not more than $100,000, the organization shall provide a completed Internal Revenue Service (IRS) Form 990 and an accountant's review that offers full and open disclosure of the organization's internal operations; or

(2) is greater than $100,000, shall be audited annually in accordance with generally accepted auditing standards of the American Institute of Certified Public Accountants.

(b) When a charitable organization submits an audit or accountant's review, a copy of the organization's most recent annual audit or accountant's review must be included with the application. The audit or accountant's review must cover the fiscal year ending not more than 18 months prior to the January of the campaign year in which the organization is applying for participation. The IRS Form 990 and audit or accountant's review must cover the same fiscal period. If the revenue and expenses on these two documents differ, the reconciliation must be included in the IRS Form 990 itself or include a letter of reconciliation submitted by the certified public accountant who completed the audit or accountant's review.

§330.3.25% Administrative Cost Cap.

(a) To be eligible to participate in a state employee charitable campaign (SECC), a charitable organization must not spend more than 25% of its annual revenue for administrative and fund raising expenses.

(b) The calculation method used to determine administrative costs will be as follows: Administrative expenses + fund raising costs divided by total revenue = percentage of revenue for administrative costs. For purposes of listing administrative costs in the state employee charitable campaign brochure, calculation of administrative costs will be carried out two places, rounded down if under 0.50, rounded up if 0.50 or over; however, if the costs are any amount over 25%, a temporary exemption by the State Employee Charitable Campaign Policy Committee (SPC) will be required for an organization to participate in a state employee charitable campaign.

(c) The SPC may grant a charitable organization a temporary exemption from the requirement of subsection (a) of this section if the committee finds that:

(1) the organization's administrative and fund raising expenses are reasonable under the circumstances; and

(2) the organization has a practical plan to reduce its administrative and fund raising expenses to no more than 25% of its annual revenue within the next three years.

(d) The SPC may grant a temporary exemption to an organization for up to three consecutive years.

(e) The SPC may consider factors to determine whether administrative and fund raising expenses incurred by a charitable organization are reasonable. The factors may include, but are not limited to:

(1) whether there has been a one-time, extraordinary expense and the reasons for that expense;

(2) whether there has been an unanticipated financial crisis or miscalculation and the reasons for that situation;

(3) the number of years the organization has been operating;

(4) whether the organization has recently changed the time periods that comprise its fiscal year; and

(5) whether the organization has changed management and the reasons for that change.

(f) Factors the SPC may consider to determine whether a plan to reduce expenses is practical may include, but are not limited to:

(1) whether the plan explains which expenses are expected to be lower in the future and explains why this is expected;

(2) whether corrective measures have already been instituted; and

(3) whether progress under a previously submitted plan has been made, if organization has been previously granted a temporary exemption.

§330.5.Local Presence.

(a) A charitable organization must maintain local presence, as described in this section, to be eligible to participate in a local campaign.

(b) A local charitable organization maintains local presence if it:

(1) provides direct or indirect health and human services; and

(2) is accessible to state employees in the local campaign area by maintaining:

(A) a publicly identified office with a professional or volunteer staff within the local campaign area that is open with staff available at least 20 hours a week during normal working hours; and

(B) a locally listed telephone number which is listed in the name of the organization. If the office is closed, a message shall state local business hours and may offer another number for callers to obtain more information.

(c) An office is deemed to be open under subsection (b)(2)(A) of this section if telephone callers to the office can speak to a live person and if visitors to the office can enter the office and speak to a member of the staff. Staff is deemed to be available under subsection (b)(2)(A) of this section if at least one staff member is answering phones and providing information as requested and is present in the office to assist visitors.

(d) An office is publicly identified if there is external signage and the local address is listed in the local phone book.

(e) The local employee committee (LEC) shall have the discretion to verify local presence.

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 January 18, 2002.

TRD-200200294

Steve Robinson

Chair, Policy Committee

State Employee Charitable Campaign

Earliest possible date of adoption: March 10, 2002

For further information, please call: (512) 463-3699


Chapter 331. REVIEW AND APPEAL PROCEDURES FOR STATEWIDE FEDERATIONS/FUNDS AND AFFILIATED ORGANIZATIONS

34 TAC §331.1, §331.5

The State Employee Charitable Campaign Policy Committee (SPC), proposes new §331.1 and §331.5, concerning review and appeal procedures for statewide federations/funds and affiliated organizations. These new sections are proposed to codify existing SPC policy regarding the process by which applications for State Employee Charitable Campaign (SECC) participation are reviewed by the SPC and by which appeals from denials of those applications are heard by the SPC. Section 331.1 provides for an administrative review to be performed by the State Advisory Committee prior to applications being sent to the SPC for substantive review; §331.5 provides procedures an organization must follow to have its appeal reviewed by the SPC. This rule also provides standards by which an appeal from denial of an application will be reviewed by the SPC.

Steve Robinson, Chair of the State Employee Charitable Campaign Policy Committee, has determined that for the first five-year period the rules will be in effect, there will be no significant fiscal impact on the state or units of local government.

Mr. Robinson also has determined that for each year of the first five years these rules are in effect, the public benefit anticipated as a result of enforcing the rules will be clarification and formalization of existing SPC policy. There will be no effect on small or micro businesses. There are no significant anticipated economic costs to persons who are required to comply with the proposed rules.

Comments on the proposal may be submitted to Steve Robinson, Executive Director, Texas Youth Commission, Attn: Chair, State Policy Committee, P.O. Box 4260, Austin, Texas 78765.

These new sections are proposed under Government Code, §659.139, which provides that the State Employee Charitable Campaign (SECC) must be managed fairly and equitably in accordance with the SECC law and the policies and procedures established by the state policy committee. The SPC interprets this statute to authorize the adoption of rules to the extent that the policies and procedures adopted are of general applicability and affect the rights of third parties, namely charitable organizations, local campaign managers, local employee committees, the state advisory committee, the state campaign manager, and state employees.

The other statute, article, or section affected by the proposed rules is Government Code, §659.146, which provides application requirements for statewide organizations and which requires the SPC to provide an appeals process.

§331.1.Administrative Review.

State Advisory Committee (SAC) members will perform an administrative review of statewide applications. Federation representatives will not be allowed to review their own documents. This is an administrative review only to determine the submission of all documentation. This review will make no determinations regarding eligibility. Statewide federations with missing documentation will be allowed time to provide needed documents. Only complete applications with all required documentation will be submitted to the State Employee Charitable Campaign Policy Committee (SPC) for eligibility approval. Deadlines will be rigidly enforced.

§331.5.Appeal Process.

No statewide federation or affiliate whose application was not complete will be considered for appeal by the State Employee Charitable Campaign Policy Committee (SPC). All appeals must be in writing and must be received in the state campaign manager's office at least 10 business days prior to the SPC meeting scheduled to consider appeals. Appeals shall include the complete application originally submitted to the SPC and the letter of denial from the SPC. Faxed appeals will not be accepted.

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 January 18, 2002.

TRD-200200296

Steve Robinson

Chair, Policy Committee

State Employee Charitable Campaign

Earliest possible date of adoption: March 10, 2002

For further information, please call: (512) 463-3699


Chapter 332. REVIEW AND APPEAL PROCEDURES FOR LOCAL FEDERATIONS/FUNDS, AFFILIATED ORGANIZATIONS, AND LOCAL CHARITABLE ORGANIZATIONS

34 TAC §332.1, §332.5

The State Employee Charitable Campaign Policy Committee (SPC), proposes new §332.1 and §332.5, concerning review and appeal procedures for local federations/funds, affiliated organizations, and local charitable organizations. These new sections are proposed to codify existing SPC policy regarding the process by which applications for State Employee Charitable Campaign (SECC) participation are reviewed by the Local Employee Committee (LEC) and by which appeals from denials of those applications are heard by the SPC. Section 332.1 provides for an administrative review to be performed by the LEC prior to applications being given substantive review; §332.5 provides procedures an organization must follow to have its appeal reviewed by the SPC. This rule also provides standards by which an appeal from an LEC denial of an application will be reviewed by the SPC.

Steve Robinson, Chair of the State Employee Charitable Campaign Policy Committee, has determined that for the first five-year period the rules will be in effect, there will be no significant fiscal impact on the state or units of local government.

Mr. Robinson also has determined that for each year of the first five years these rules are in effect, the public benefit anticipated as a result of enforcing the rules will be clarification and formalization of existing SPC policy. There will be no effect on small or micro businesses. There are no significant anticipated economic costs to persons who are required to comply with the proposed rules.

Comments on the proposal may be submitted to Steve Robinson, Executive Director, Texas Youth Commission, Attn: Chair, State Policy Committee, P.O. Box 4260, Austin, Texas 78765.

These new sections are proposed under Government Code, §659.139, which provides that the State Employee Charitable Campaign (SECC) must be managed fairly and equitably in accordance with the SECC law and the policies and procedures established by the state policy committee. The SPC interprets this statute to authorize the adoption of rules to the extent that the policies and procedures adopted are of general applicability and affect the rights of third parties, namely charitable organizations, local campaign managers, local employee committees, the state advisory committee, the state campaign manager, and state employees.

The other statute, article, or section affected by the proposed rules is Government Code, §659.147, which provides application requirements for a charitable organization that seeks local participation in the SECC and which requires the SPC to provide an appeals process.

§332.1.Administrative Review.

The Local Employee Committee shall perform an administrative review of local applications and give local federations and organizations time to provide missing documentation prior to the Local Employee Committee eligibility review process. This is an administrative review only to determine the submission of all documentation. This review will make no determinations regarding eligibility. Local federations and organizations with missing documentation will be allowed time to provide needed documents. Only complete applications with all required documentation will be submitted to the Local Employee Committee for eligibility approval. Deadlines will be rigidly enforced.

§332.5.Appeal Process.

All appeals from a Local Employee Committee regarding eligibility shall be made to the State Employee Charitable Campaign Policy Committee (SPC). No local federation, affiliate or local organization whose applications was denied by the Local Employee Committee for incomplete documentation will be considered for appeal by the SPC. All appeals must be in writing and must be received in the state campaign manager's office at least 10 business days prior to the SPC meeting scheduled to consider appeals. Appeals shall include the complete application originally submitted to the Local Employee Committee and the letter of denial from the Local Employee Committee. Faxed appeals will not be accepted.

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 January 18, 2002.

TRD-200200297

Steve Robinson

Chair, Policy Committee

State Employee Charitable Campaign

Earliest possible date of adoption: March 10, 2002

For further information, please call: (512) 463-3699


Chapter 333. CAMPAIGN MATERIALS

34 TAC §§333.1, 333.3, 333.5, 333.7

The State Employee Charitable Campaign Policy Committee (SPC), proposes new §§333.1, 333.3, 333.5, and 333.7, concerning campaign materials. These new sections will codify existing SPC policy and establish new policy regarding the process and standards by which campaign logos, themes, and materials are submitted and approved. These rules provide a standardized and fair process by which campaign materials will be approved. Section 333.1 provides for an SPC-approved State Employee Charitable Campaign logo; §333.3 provides a procedure for submitting and approving campaign themes for use throughout the state; §333.5 provides processes required after a theme or themes are approved; §333.7 requires materials used by all campaigns to meet the requirements set forth in the guidelines provided by this section

Steve Robinson, Chair of the State Employee Charitable Campaign Policy Committee, has determined that for the first five-year period the rules will be in effect, there will be no significant fiscal impact on the state or units of local government.

Mr. Robinson also has determined that for each year of the first five years these rules are in effect, the public benefit anticipated as a result of enforcing the rules will be clarification and formalization of existing SPC policy. There will be no effect on small or micro businesses. There are no significant anticipated economic costs to persons who are required to comply with the proposed rules.

Comments on the proposal may be submitted to Steve Robinson, Executive Director, Texas Youth Commission, Attn: Chair, State Policy Committee, P.O. Box 4260, Austin, Texas 78765.

These new sections are proposed under Government Code, §659.139, which provides that the State Employee Charitable Campaign (SECC) must be managed fairly and equitably in accordance with the SECC law and the policies and procedures established by the state policy committee. The SPC interprets this statute to authorize the adoption of rules to the extent that the policies and procedures adopted are of general applicability and affect the rights of third parties, namely charitable organizations, local campaign managers, local employee committees, the state advisory committee, the state campaign manager, and state employees.

The other statute, article, or section affected by the proposed rules is Government Code, §659.140, which requires the SPC to approve the generic materials to be used by campaign managers, and Government Code, §659.143 which requires the local employee committees (LECs) to approve the recommended generic materials to be used by campaign managers. Comptroller rule 34 TAC §5.48 also requires the LECs to approve the local campaign materials to be used in their respective local campaign areas.

§333.1.Logo.

The only approved logo for the State Employee Charitable Campaign is the small State of Texas flag along with the words "Together We Care."

§333.3.Campaign Theme Submission.

(a) Campaign managers may submit theme nominations every even numbered year on or before 10 business days prior to the annual State Employee Charitable Campaign (SECC) Conference.

(b) SECC Conference attendees, by vote, may choose no more than three themes to be forwarded to the State Advisory Committee (SAC) and State Employee Charitable Campaign Policy Committee (SPC) for consideration and approval. The SPC, after considering any SAC recommendation, may approve or reject some or all or the themes submitted. No more than three themes shall be approved for use in the same campaign years. After considering any SAC recommendation, the SPC shall vote and choose one theme to be used for a central purchasing process, if provided by the state campaign manager (SCM).

§333.5.Use of Campaign Materials.

(a) If a central purchasing process is used, the state campaign manager (SCM) will order materials depicting only one of the State Employee Charitable Campaign Policy Committee (SPC) approved themes.

(b) Local campaign areas will have the option of using the campaign materials ordered through the central purchasing process or ordering its own campaign materials based on any one of the other approved themes, if any others are approved by the SPC.

(c) Neither the State Advisory Committee (SAC) nor the SPC shall consider themes that are submitted after the annual State Employee Charitable Campaign Conference attendees have voted on the themes to be considered by the SAC and SPC, whichever is earlier.

§333.7.Campaign Materials Guidelines.

(a) Local materials not ordered through the state campaign manager must be submitted each year to the state advisory committee for recommendation to the state policy committee for approval.

(b) The following are guidelines for the creation and production of any materials used for the State Employee Charitable Campaign (SECC).

(1) Campaign managers will submit possible themes every second year in January at the annual SECC Workshop/Conference.

(2) Attendees will chose up to three themes, which will be submitted to the State Advisory Committee (SAC) and State Employee Charitable Campaign Policy Committee (SPC) for approval.

(3) Based upon SAC recommendation and SPC approval, if central purchasing is available, materials will be ordered depicting one of the approved themes, as decided upon by the SPC.

(4) Local areas may use centrally purchased materials or, if submitted, recommended by the SAC and approved by the SPC, local areas may order their own materials based on any of the approved themes.

(5) All materials must include the SECC flag logo, as well as the approved theme.

(c) The following are guidelines to be used for the creation and production of state employee charitable campaign brochures.

(1) The cover of the brochure must include one of the SPC approved themes.

(2) The cover or back cover of the brochure must include the SECC flag logo.

(3) There are no restrictions on paper quality.

(4) The brochure may be printed in color or in black and white.

(5) The general brochure information and statewide federation listings that are available on-line must be used in the original format.

(6) The brochure listings must include a six-digit code, the name of charity, a phone number, a 25-word description, and administrative costs; a web address is optional.

(7) The font size and type must be consistent throughout the brochure with no differentiation made between statewide and local charities.

(8) The brochure may be printed on paper that is 8-1/2 inches by 11 inches or 11 inches by 17 inches.

(9) A suggested ratio is one brochure for each five state employees.

(10) Statewide and local listing will be rotated each year; local federations will rotate with local organizations; federations will be listed in alphabetical order.

(d) If a mini-brochure is used, the following guidelines will apply.

(1) The cover of the brochure must include one of the SPC approved themes.

(2) The cover or back cover of the brochure must include the SECC flag logo.

(3) There are no restrictions on paper quality.

(4) The brochure may be printed in color or in black and white.

(5) General brochure information is not required.

(6) Listings must include a 6-digit code and the name of the charity (federation and affiliates must be included).

(7) Font size and type must be consistent throughout brochure with no differentiation made between statewide and local charities.

(8) There are no size restrictions.

(9) A suggested ratio is one mini-brochure for each state employee.

(10) Statewide and local listing will be rotated each year; local federations will rotate with local organizations; federations will be listed in alphabetical order.

(e) The following are guidelines to be used for the creation and production of authorization forms (pledge form).

(1) Only state approved forms may be used.

(2) Any locally printed form, including higher education, scannable, and on-line forms, must be submitted annually for recommendation by the SAC and approval by the SPC.

(f) The following are guidelines to be used for the creation of other campaign materials.

(1) All items must include one of the SPC approved themes.

(2) All items must include the SECC flag logo.

(3) Any campaign materials not ordered through the state campaign manager central purchasing process, if applicable, must be submitted to the SAC for recommendation and to the SPC for approval.

(4) any campaign materials not approved by the SPC are not eligible for campaign reimbursement.

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 January 18, 2002.

TRD-200200298

Steve Robinson

Chair, Policy Committee

State Employee Charitable Campaign

Earliest possible date of adoption: March 10, 2002

For further information, please call: (512) 463-3699


Chapter 334. GRIEVANCE PROCEDURES

34 TAC §334.1, §334.3

The State Employee Charitable Campaign Policy Committee (SPC), proposes new §334.1 and §334.3, concerning grievance procedures. These new rules codify existing SPC policy and establish new procedures for submitting grievances regarding the State Employee Charitable Campaign (SECC) campaign to Local Employee Committees (LECs) and to the SPC. Section 334.1 provides a procedure for filing grievances concerning local campaign issues. An aggrieved party must file the grievance with the LEC in accordance with the rule prior to filing the grievance with the SPC. Section 334.3 provides a procedure for filing grievances concerning statewide campaign issues. An aggrieved party must file the grievance with the SPC in accordance with the rule.

Steve Robinson, Chair of the State Employee Charitable Campaign Policy Committee, has determined that for the first five-year period the rules will be in effect, there will be no significant fiscal impact on the state or units of local government.

Mr. Robinson also has determined that for each year of the first five years these rules are in effect, the public benefit anticipated as a result of enforcing the rules will be clarification and formalization of existing SPC policy. There will be no effect on small or micro businesses. There are no significant anticipated economic costs to persons who are required to comply with the proposed rules.

Comments on the proposal may be submitted to Steve Robinson, Executive Director, Texas Youth Commission, Attn: Chair, State Policy Committee, P.O. Box 4260, Austin, Texas 78765.

These new sections are proposed under Government Code, §659.139, which provides that the State Employee Charitable Campaign (SECC) must be managed fairly and equitably in accordance with the SECC law and the policies and procedures established by the state policy committee. The SPC interprets this statute to authorize the adoption of rules to the extent that the policies and procedures adopted are of general applicability and affect the rights of third parties, namely charitable organizations, local campaign managers, local employee committees, the state advisory committee, the state campaign manager, and state employees. These sections are also proposed under Government Code, §659.140(e)(6) which requires the SPC to perform other duties prescribed by comptroller rules. Comptroller rule 34 TAC §5.48(n)(2)(I) authorizes the SPC to establish policies and procedures regarding the hearing of any grievance concerning the operation and administration of the campaign.

The other statute, article, or section affected by the proposed rules is Government Code, §659.140(e)(5), which requires the SPC to oversee the state employee charitable campaign to ensure that all campaign activities are conducted fairly and equitably to promote unified solicitation on behalf of all participants.

§334.1.Procedures For Grievances Involving Local Campaign Issues.

The State Employee Charitable Campaign (SECC) is conducted in accordance with state law, the comptroller's rules and State Employee Charitable Campaign Policy Committee (SPC) rules. While the SPC is responsible for oversight of the SECC and insuring compliance by all parties, the day-to-day oversight of the SECC rests with the Local Employee Committees. The Local Employee Committee (LEC), composed of 5 to 10 local state employees and the local chair, is responsible for oversight of the local SECC to ensure that all campaign activities are conducted in accordance with state law and that they fairly and equitably promote unified solicitation on behalf of all participants. In order to expedite the handling of complaints and grievances pertaining to SECC and to ensure the input of all concerned parties, the following grievance policy shall be followed.

(1) A state employee or charitable organization, including a federation/affiliate charity representative, may lodge a grievance pertaining to the conduct of the SECC at the local level or regarding an LEC, local campaign manager (LCM), or local charitable organization or local federation or fund. The grievance shall be submitted in writing to the LEC chair in whose area the grievance originates.

(2) The chair of the LEC shall provide a written response to the grievance within 10 business days.

(3) If the aggrieved party has received no response within the specified time frame or is not satisfied with the response provided by the LEC, the aggrieved party may submit the grievance to the State Policy Committee at the following address: State Policy Committee Chair, c/o United Ways of Texas, State Campaign Manager, 3724 Executive Center Drive, Suite 210, Austin, TX 78731.

(4) The grievance shall contain a copy of the original grievance submitted to the LEC and the LEC response. If the LEC failed to respond to the original grievance within the specified time frame, the failure to respond should be stated in the submission to the SPC.

(5) Any grievance submitted to the SPC without first being submitted to the LEC will not be acted upon but will be returned to the appropriate LEC for action.

(6) A grievance properly received by the SPC will be reviewed and may be acted upon at the next scheduled SPC meeting, if possible.

§334.3.Procedures For Grievances Involving Statewide Campaign Issues.

State Employee Charitable Campaign (SECC) is conducted in accordance with state law, the comptroller's rules and SPC rules. While the State Employee Charitable Campaign Policy Committee (SPC) is responsible for oversight of the SECC and insuring compliance by all parties, the day-to-day oversight of the SECC rests with the Local Employee Committees. The Local Employee Committee (LEC), composed of 5 to 10 local state employees and the local chair, is responsible for oversight of the local SECC to ensure that all campaign activities are conducted in accordance with state law and that they fairly and equitably promote unified solicitation on behalf of all participants. In order to expedite the handling of complaints and grievances pertaining to SECC and to ensure in put of all concerned parties, the following grievance policy shall be followed.

(1) A state employee or charitable organization, including a federation/affiliate charity representative may lodge a grievance pertaining to the conduct of the State Employee Charitable Campaign at the statewide level, regarding any SECC matter occurring at the statewide level, or regarding the SPC, the state campaign manager (SCM), or a statewide charitable organization, including a statewide federation or fund. Grievances shall be sent to the following address: State Policy Committee Chair, c/o United Ways of Texas, State Campaign Manager, 3724 Executive Center Drive, Suite 210, Austin, TX 78731.

(2) The aggrieved party shall cooperate with the SPC to investigate the grievance. The decision of the SPC shall be final.

(3) Any grievance submitted to the SPC may be referred to the appropriate LEC for review and action if the grievance concerns local issues.

(4) A grievance properly received by the SPC will be reviewed and may be acted upon at the next scheduled SPC meeting, if possible.

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 January 18, 2002.

TRD-200200299

Steve Robinson

Chair, Policy Committee

State Employee Charitable Campaign

Earliest possible date of adoption: March 10, 2002

For further information, please call: (512) 463-3699