For further information, please call: (512) 463-2110

Subchapter B. APPLICATION, REVIEW AND AWARD PROCESS

1 TAC §§60.100 - 60.103

The proposed rules affect Texas Code of Criminal Procedure, Article 56.541.

§60.100.Application Process.

(a) After the RFA is published in the Texas Register, the application kit will be available on the official agency website at www.oag.state.tx.us , or an applicant may request an application kit from the Crime Victim Services Division.

(b) An applicant for a grant under this chapter must submit a VADG or VCLG application to the Crime Victim Services Division of the OAG, as referenced in the RFA.

(d) Providing false information, knowingly or unknowingly, on a grant application may cause an application to be denied or cause the grant, once awarded, to be terminated.

§60.101.Scoring and Review Process.

(a) The OAG will review each eligible application. The OAG may designate a team to evaluate or score eligible applications. The OAG has full discretion in making all funding decisions.

(b) During the review process, an OAG staff member, or a designee, may contact the applicant for additional information.

(c) There are several stages of the review process. A decision to approve or deny project funding may be made at any point during that process.

§60.102.Grant Decision Process.

(a) The OAG will inform the applicant of its decision regarding a grant award through either a Statement of Grant Award or a denial letter signed by the Attorney General or his designee.

(b) In an effort to keep the applicants informed, the OAG may post information on the official agency website, www.oag.state.tx.us .

(c) The OAG must receive a written acceptance or rejection of a grant award within 45 calendar days of the date of the Statement of Grant Award. An applicant's failure to provide the grantee acceptance notice to the OAG within this time period will be construed as a rejection of the grant award, and the OAG may deobligate funds.

(d) The OAG may add special conditions to the grant award requiring documents to be submitted prior to the reimbursement of any expenses. Special conditions include submission of attachments or justification for certain items. Until satisfied, these special conditions will affect the grantee's ability to access funds. If special conditions are not resolved, the OAG may deobligate the entire amount of the grant award.

§60.103.Review of Denial.

(a) If the OAG denies an application, an applicant may request that the OAG review only the following:

(1) the eligibility; and/or

(2) the scores, for possible computational errors.

(b) The OAG must receive any review requests within 20 calendar days from the date on the letter of denial.

(d) The OAG decision concerning a review 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 April 14, 2003.

TRD-200302440

For further information, please call: (512) 463-2110

Subchapter C. GRANT BUDGET REQUIREMENTS

1 TAC §§60.200 - 60.208

The proposed rules affect Texas Code of Criminal Procedure, Article 56.541.

§60.200.General Budget Provisions.

(a) All applicants must submit a budget.

(b) Grants awarded by the OAG are reimbursement-only grants. Grantees are reimbursed for authorized actual expenditures contained in the documents required to be submitted to the OAG. If necessary, the OAG may use an alternative method of payment.

(c) An individual paid with grant funds may not receive dual compensation for the same work, even if the services performed benefit more than one entity.

(d) All grantees, including but not limited to non-profit entities and local governmental agencies, must follow the rules and requirements as outlined in UGMS and all applicable OMB federal circulars.

(e) An entity must have an allocation plan for budget items that are funded partially with OAG sources or must maintain equivalent receipts and records.

(f) All budget items must be reasonable and necessary and be allocated proportionately within each budget category.

(g) All contracts or equipment purchases with a value of $25,000 or more must be pre-approved by the OAG.

§60.201.Salary.

(a) The salary budget category may include employees only, and not independent contractors. "Employee" is defined as a person under the direction and supervision of the entity, who is on the payroll of the entity and for whom the entity is required to pay applicable income withholding taxes; or a person who will be on the entity's payroll and for whom the entity will pay applicable income withholding taxes once the grant is awarded.

(b) Salaries for grant-funded positions must be reasonable and comply with the entity's salary classification schedule. If an entity does not have a classification schedule, the entity must maintain documentation supporting that the salary is commensurate with that paid in the geographic area for positions with similar duties and qualifications. In any event, the OAG will determine whether or not a salary is reasonable and may limit the OAG-funded portion of any salary.

(d) An entity may not use grant funds to pay overtime.

§60.202.Fringe Benefits.

(a) "Fringe benefits" is defined as allowances and services provided by an entity to its employees as compensation in addition to regular salaries and wages. Fringe benefits include the costs of leave, employee insurance, pensions, and unemployment benefit plans.

(b) Grant funds may be used to pay fringe benefits only if grant funds are also being used for salary.

(c) An entity must provide grant-funded personnel the same fringe benefits provided to all other non- grant-funded personnel of the entity.

§60.203.Professional and Consultant Services.

(a) "Professional and consultant services" is defined as any service for which the entity uses an outside source for necessary support. Professional and consultant services include accounting services, counseling, legal services, and computer support.

(b) All costs for professional and consultant services must follow the guidelines set forth in UGMS.

(c) Grant funds may not be used to pay for any person or vendor who participates directly in writing a grant application.

§60.204.Travel.

(a) Travel expenses will be reimbursed according to the Texas State Travel Guidelines, unless a grantee's travel policy provides a lesser reimbursement.

(b) Travel must relate directly to the delivery of services or to the central focus of the grant project.

§60.205.Equipment.

(a) "Equipment" is defined as any item with a unit cost of $1,000 or more and any other item, without regard to the unit cost, that a grantee capitalizes in its own accounting records.

(b) A grantee may use equipment only for grant-related purposes and not for personal or non-grant- related purposes.

(d) Grant funds may not be used to fund the purchase of vehicles.

§60.206.Supplies.

(a) "Supplies" is defined as consumable items directly related to the day-to-day operation of the grant project. Allowable items include office supplies, paper, postage, and education resource materials.

(b) The OAG will not approve funds for the purchase of project promotional items or recreational activities.

§60.207.Other Direct Operating Expenses.

(a) "Other direct operating expenses" is defined as those costs not included in other budget categories and which are directly related to the day-to-day operation of the grant project.

(b) Funds may not be used to purchase food and beverages for meetings or program participants .

§60.208.Indirect Costs.

(a) "Indirect costs" is defined as any cost not directly identified with a single, final cost objective, but identified with two or more final cost objectives, or with at least one intermediate cost objective. For additional guidelines on "indirect costs," entities should consult UGMS.

(b) The OAG will not allow indirect costs unless the entity submits a cost allocation plan approved by a cognizant agency and the costs are approved by the OAG.

(c) The OAG reserves the right to limit indirect costs charged to a grant regardless of an applicant's cost allocation plan.

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 April 14, 2003.

TRD-200302441

For further information, please call: (512) 463-2110

Subchapter D. REQUIRED ATTACHMENTS

1 TAC §60.300, §60.301

The proposed rules affect Texas Code of Criminal Procedure, Article 56.541.

§60.300.Comprehensive Certification and Assurances Form.

If possible, applicants should submit a signed Comprehensive Certification and Assurances Form with the grant application. Otherwise, the form must be submitted within the period for acceptance or rejection of a grant as provided in section 60.102(c). The form includes the following certifications:

(1) Equal Employment Opportunity Program Certification;

(2) Certification Regarding Lobbying;

(3) Nonprocurement Debarment Certification;

(4) Drug-Free Workplace Certification;

(5) Audit Certification;

(6) UGMS Certification;

(7) Certified Assurances; and

(8) Other certifications deemed necessary by the OAG.

§60.301.Resolution.

(a) The resolution permits the entity to submit an application and must be submitted before the award or release of funds.

(b) The specific requirements and format for resolutions may be found in the application kit made available after the RFA is published.

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 April 14, 2003.

TRD-200302442

For further information, please call: (512) 463-2110

Subchapter E. ADMINISTERING GRANTS

1 TAC §§60.400 - 60.409

The proposed rules affect Texas Code of Criminal Procedure, Article 56.541.

§60.400.Grant Forms.

(a) Unless otherwise stated, all required forms will be provided by the OAG.

(b) Failure to timely submit the required forms provided by the OAG may result in sanctions as stated in section 60.409.

§60.401.Grant Contact and Authorized Signator.

(a) A grantee must have the following designees:

(1) Grant contact the grant contact must be an employee of the grantee who is responsible for operating and monitoring the project and who is able to readily answer questions about the grant project's day-to-day operations. All grant-related information will be sent to this contact person.

(2) Authorized signator the authorized signator is the person authorized to apply for, accept, decline, or cancel the grant for the applicant entity. This person signs all grant adjustment requests, inventory reports, progress reports and financial reports as well as any other official documents related to the grant. This person may be, for example, the executive director of the entity, or a county judge, mayor, city manager, assistant city manager, or designee authorized by the governing body in the resolution.

(b) Any changes in the grant contact or authorized signator must be submitted in writing to the OAG immediately.

§60.402.Financial Reporting and Reimbursement.

(a) Because grants awarded under this chapter are reimbursement-only grants, a grantee must regularly submit financial status reports and invoices, as directed by the OAG.

(b) A grantee must ensure that its final invoice is received no later than the 45th calendar day after the end of the grant period (liquidation date). If this date falls on a weekend or a holiday, then the OAG will honor receipt on the following business day. On the liquidation date, if grant funds are on hold for any reason, the funds will lapse and cannot be recovered by the grantee.

(d) If necessary, the OAG may allow an extension beyond the deadline stated in subsection (b).

§60.403.Performance Reporting.

(a) A grantee must regularly submit performance reports as directed by the OAG. Failure to do so may result in the OAG placing a grantee on financial hold and may affect future funding requests.

(b) The OAG, or its designee, may assess project effectiveness through review of required performance reports, on-site visits, and/or desk reviews. Information relating to performance reporting must be maintained in the grantee's files and must be available for review by the OAG or its designee.

§60.404.Inventory Reporting.

A grantee must maintain an inventory report of all equipment purchased as part of the grant project on file at its principal office. The grantee must complete and submit to the OAG an inventory of grant property no later than the 60th calendar day after the end of the grant period. If this date falls on a weekend or holiday, the OAG will honor receipt on the following business day.

§60.405.Grant Adjustments.

(a) Within each fiscal year, a grantee may transfer funds between direct cost line items in different approved budget categories, not to exceed a cumulative total of ten percent of the approved grant budget during that year, without requesting a grant adjustment from the OAG.

(b) If it becomes necessary to move funds that are greater than ten percent of the total budget between existing budget categories, revise the scope or target of the program, add new budget categories, or alter project activities, a grantee must first request and receive approval from the OAG for a grant adjustment. The person designated in the Grantee Acceptance Notice to make such requests or the authorized signator must sign all grant adjustment request forms. The OAG will allow only one grant adjustment per state fiscal year unless:

(1) the grantee demonstrates circumstances that the OAG deems adequately extenuating; or

(2) the OAG requests the grant adjustment.

(1) the grantee demonstrates circumstances that the OAG deems adequately extenuating; or

(2) the OAG requests the grant adjustment.

§60.406.Copyrights.

If a grantee uses any OAG funds to purchase or receive a copyright or for a subcontractor to purchase or receive a copyright, the OAG reserves a royalty-free and irrevocable license to reproduce, publish, use, or authorize others to use the copyrighted material.

§60.407.Procurement, Property Management, and Contract Oversight Procedures.

A grantee shall use the procurement procedures, property management procedures, and contract oversight guidelines set forth in UGMS. A grantee must comply with UGMS and all applicable state and local laws and regulations.

§60.408.Maintenance of Records.

Unless otherwise noted, a grantee must retain all records relating to the grant for at least five years following the closure of the most recent audit report for the purposes of federal and state auditing and monitoring. Records may be retained in an electronic format. Such records include, but are not limited to:

(1) A copy of any required licenses or certifications of any individual who holds a grant-funded position.

(2) Time and attendance records for all grant-funded positions. These records must include the number of hours worked each day on the project, the signature of the employee, and the signature of the supervisor. Any further documentation requested by the OAG shall be maintained by the grantee for audit and monitoring purposes.

(3) Documentation showing that the terms of any grant-funded third-party contracts are being met.

(4) Adequate travel logs that include, at a minimum, dates, destinations, mileage amounts, and explanations of grant-related activities performed during the travel.

(5) Verification of completion of training and other related records.

(6) Records of the disposition, replacement or transfer of any equipment, non-expendable personal property or real property purchased with grant funds. The five-year retention period for these records begins on the date of the disposition, replacement or transfer.

(7) Records of any litigation, claims, or audits involving the grant. The retention period for these records shall continue until such litigation, claims or audits have been resolved.

§60.409.Sanctions.

(a) Reimbursement for grant-related expenses is contingent upon a grantee's strict compliance with these rules, related requirements, and OAG procedures. Any failure to comply may result in the imposition of temporary or permanent sanctions or both.

(b) Sanctions may include:

(1) Placing a grantee on financial hold;

(2) Requiring repayment of grant funds;

(3) Transferring the administration of a grant project to another entity;

(4) Termination of a grant;

(5) Ineligibility for future funding with the OAG;

(6) Any other sanction or corrective action that the OAG deems necessary.

(d) If the grantee receives notice of grounds for sanctions and subsequently provides satisfactory evidence that the deficient condition has been corrected, the OAG may release funds.

(e) If the grantee fails to correct the deficient condition, in the time and manner as indicated by the OAG, and the grant is terminated, the OAG may require the grantee to return any equipment purchased with grant funds, and all unexpended or unobligated funds awarded to a grantee will revert to the OAG.

(f) A grantee may request a review of the sanctions imposed, as described below:

(1) A grantee may, within 10 calendar days of the date on the notice of sanctions, make a written request for reconsideration of any sanctions imposed.

(2) A grantee should submit any documentation necessary to support the reconsideration.

(3) The OAG will send the final determination to the grantee in writing.

(4) The OAG decision concerning sanctions 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 April 14, 2003.

TRD-200302443

For further information, please call: (512) 463-2110

Subchapter F. PROGRAM MONITORING AND AUDITING

1 TAC §§60.500 - 60.503

The proposed rules affect Texas Code of Criminal Procedure, Article 56.541.

§60.500.Violations of Laws.

A grantee must immediately provide notification to the OAG and, if applicable, the local prosecutor's office, of any knowledge, suspicion, or evidence of any violation of law that affects or is related to the grant. Such violations include misappropriation of funds, fraud, theft, embezzlement, forgery, or any serious irregularity or noncompliance with the requirements of this chapter.

§60.501.Conflict of Interest.

(a) Grantee personnel, members of a grantee board or governing body, or other persons affiliated with the grant project shall not participate in any proceeding or action where grant funds personally benefit, directly or indirectly, the individuals or their relatives. For the purposes of this chapter, "relatives" means persons related to the individual within the third degree by consanguinity or within the second degree by affinity, as determined by Chapter 573 of the Government Code.

(b) Grant personnel and officials must avoid any action that results in or creates the appearance of:

(1) using their official positions for private gain;

(2) giving preferential treatment to any person;

(3) losing independent judgment or impartiality;

(4) making an official decision outside of official channels; or

(5) adversely affecting the confidence of the public in the integrity of the program or the OAG.

§60.502.Quality Assurance.

(a) Quality assurance reviews include programmatic monitoring, financial monitoring, and financial auditing.

(b) The OAG will conduct quality assurance reviews throughout the existence of a grant. A grantee must make all grant-related records available to OAG representatives unless the information is sealed by law.

(c) Quality assurance reviews may be on-site or desk reviews and may include any information that the OAG deems relevant to the project.

(d) The OAG, or its designee, may make unannounced visits at any time.

(e) The OAG reserves the right to conduct its own audit or contract with another entity to audit any grantee.

(f) Based on the information gathered during monitoring or auditing, the OAG will issue a quality assurance report.

(g) A grantee must submit documentation to the OAG responding to any findings and questioned costs contained in the report.

(h) The quality assurance determination of the OAG is final and not subject to judicial review.

§60.503.Audit Standards.

(a) The OAG requires a grantee to conduct or undergo an annual audit of a grant, including subgrants, based on federal or state audit requirements and following audit standards set forth in UGMS and all applicable federal circulars.

(b) A grantee must submit to the OAG copies of all audit reports, including audits as required in UGMS and all other audits that a grantee undergoes, regardless of the purpose. Such reports must be submitted to the OAG within 30 calendar days of completion.

(c) OAG grant funds may only be used for the fair and reasonable share of audit costs required by the OAG, in accordance with applicable federal and state cost principles governing allowability and allocation.

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 April 14, 2003.

TRD-200302444

For further information, please call: (512) 463-2110

Chapter 63. VICTIMS' ASSISTANCE GRANTS

The Office of the Attorney General (OAG) proposes the repeal of Title 1, Texas Administrative Code (TAC) Chapter 63, Subchapters A-J, relating to rules for victims' assistance grant approval and administration. The OAG proposes the repeal of Subchapter A, (General Provisions, §63.1 and §63.3); Subchapter B, (Grants for Victim Assistance Coordinator or Crime Victim Liaison, §§63.11, 63.13, 63.15, 63.17 and 63.19); Subchapter C, (Grants for Statewide Training for Programs That Benefit Victims of Sexual Assault and to Purchase Forensic Exam Equipment, §§63.31, 63.33, 63.35, 63.37 and 63.39); Subchapter D, (Grant Application, Scope of Grant, Approval, §§63.51, 63.53, 63.55 and 63.57); Subchapter E, (Funding of Grants, §63.71 and §63.73); Subchapter F, (Grant Budget Requirements, §§63.81, 63.83, 63.85, 63.87, 63.89 and 63.91); Subchapter G, (Special Conditions and Required Documents, §§63.101, 63.103, 63.105, 63.107, 63.109, 63.111, 63.113, 63.115, 63.117, 63.119, 63.121, 63.123 and 63.125); Subchapter H, (Award and Grant Acceptance, §§63.127, 63.129 and 63.131); Subchapter I, (Administering Grants, §§63.141, 63.143, 63.145, 63.147, 63.149, 63.151, 63.153, 63.155, 63.157, 63.159, 63.161, 63.163, 63.165, 63.167, 63.169, 63.171, 63.173, 63.175, 63.177, 63.179, 63.181, 63.183 and 63.185); and Subchapter J, (Program Monitoring and Audits, §§63.191, 63.193 and 63.195).

Article 56.541 of the Texas Code of Criminal Procedure governs the appropriation of excess money for crime victim assistance other than the Crime Victims' Compensation Fund. Subsection(f) of the Article mandates that the OAG adopt rules necessary to carrying out the Article's provisions. The OAG conducted a review of the rules it had previously adopted pursuant to Article 56.541 and concluded that the rules warranted a substantial overhaul. Specifically, the current rules contain confusing terminology and are being merged with a related Chapter in Title I of the Administrative Code, Chapter 60, in order to streamline the victims' assistance grant application and administration process. The consolidated and updated rules are being proposed and published simultaneously with the proposed repeal of the rules contained herein. The expected effects of the proposed repeal, in conjunction with the proposed new rules, are streamlined grant administration and an improved grant application process.

Mr. Herman Millholland, Chief of the Crime Victims' Services Division of the OAG, has determined that for each year of the first five years that the proposed repeal will be in effect, there will be no fiscal impact to state or local governments as a result of enforcing or administering the repeal.

Mr. Millholland has determined that for the first five-year period in which the repeal is in effect, the anticipated public benefit will be improved administration and distribution of grants that benefit victims of crime.

Subchapter A. GENERAL PROVISIONS

1 TAC §63.1, §63.3

The repeal of Chapter 63 is proposed under the Texas Code of Criminal Procedure, Title 1, Article 56.541(f), which authorizes the OAG to promulgate rules to effectuate the purposes of the Article.

Texas Code of Criminal Procedure Article 56.541 is affected by this proposed repeal.

§63.1.Definitions.

§63.3.Source and Purpose of Funds.

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

Filed with the Office of the Secretary of State on April 14, 2003.

TRD-200302429