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TITLE 13CULTURAL RESOURCES
PART 2TEXAS HISTORICAL COMMISSION
CHAPTER 11ADMINISTRATION DEPARTMENT
SUBCHAPTER AADMINISTRATION
RULE §11.9Donations and Relationship with Affiliated Non-Profit Organizations

(a) Donations

  (1) All funds received from donations to the commission will be deposited in the state treasury and used for the purpose specified by the donor, or for general commission programs when no purpose is specified.

  (2) Donations to the commission will not be used for supplementation of salary of any employee of the commission.

  (3) The commission will not accept donations from organizations or individuals administering grants from the commission or which have projects undergoing review by the commission.

  (4) Donations other than money may be accepted at the discretion of the commission.

(b) Relationship with Affiliated Non-Profit Organization

  (1) The commission is authorized to participate in the establishment and operation of an affiliated nonprofit organization whose purpose is to raise funds for or provide services or other benefits to the commission by Texas Government Code §442.005(p).

  (2) The commission, by vote of the commission in a duly posted meeting, may authorize the establishment of a contractual relationship with a non-profit organization for any purpose authorized by law and in compliance with this section.

  (3) The contract or other agreement with the affiliated non-profit organization shall set out fully the relationship between the commission and the affiliated non-profit organization, and shall meet the following requirements:

    (A) Administration and investment of funds received by the organization for the benefit of the commission.

      (i) All records of the affiliated non-profit organization shall be available for inspection or audit by the commission or its designee.

      (ii) A representative of the affiliated non-profit organization shall regularly report to the commission on the operations of the affiliated non-profit organization.

      (iii) Funds or other assets of the affiliated non-profit organization shall be administered and invested in a manner to be provided in the contract or other agreement. At a minimum, funds received by the affiliated non-profit organization shall be handled as follows:

        (I) Funds shall be placed in an account at a financial institution within ten business days of receipt.

        (II) Funds shall be placed in an interest-bearing or other investment account in accordance with the investment policy of the affiliated nonprofit organization.

        (III) Funds shall be used only to support approved projects of the commission or to pay administrative expenses of an affiliated non-profit organization.

        (IV) Employees of the commission shall not be signatories on accounts of an affiliated non-profit organization.

    (B) Use of an employee or property of the agency by the affiliated non-profit organization.

      (i) Staff of the commission may assist in the operation of the affiliated non-profit organization during regular work hours only with the written approval of the executive director.

      (ii) Staff involved in regulatory functions of the commission shall not participate in the management of the affiliated non-profit organization except on a case-by-case basis with the written approval of the executive director. All staff involved in the development of grant proposals may provide subject-matter expertise for the grant proposals, including, with the written approval of the executive director, participating in the presentation of grant proposals to potential donors.

      (iii) Property of the commission may be used in support of an affiliated non-profit organization so long as the use serves a public purpose and is within the limitations of this section and any contract or agreement between the commission and the affiliated non-profit organization. Any state property entrusted to the affiliated non-profit organization must remain on the inventory of the commission and be properly accounted for in accordance with state agency requirements.

      (iv) The commission may provide office space, pay utilities, and pay other expenses of an affiliated non-profit organization as long as any such expense serves a public purpose and is within the limitations of this section and any contract or agreement between the commission and the affiliated non-profit organization.

  (4) Prohibitions in relationship with affiliated non-profit organization.

    (A) An employee of the commission may not also serve as an employee, elected officer or director of an affiliated non-profit organization. An employee of the commission may serve as an ex officio, non-voting director of an affiliated non-profit organization.

    (B) A commissioner or employee of the commission shall not receive monetary enrichment from the affiliated non-profit organization except with the approval of the executive director, or, in the case of the executive director or a commissioner, with the approval of the commission.

  (5) The commission may recommend or nominate individuals to serve as officers, directors, or employees of an affiliated non-profit organization.

  (6) The commission shall have a formal liaison committee or other, similar group to monitor the operation of an affiliated non-profit organization.

  (7) An affiliated non-profit organization will not knowingly accept donations from organizations or individuals administering grants from the commission or which have contracts with the commission. Should such a donation be accepted, it shall be returned upon discovery of such a relationship.

  (8) An affiliated non-profit organization may not expend funds for the purpose of influencing legislative action, either directly or indirectly.

  (9) The commission shall review its relationship with an affiliated non-profit organization on a schedule to be established by the commission, but not less than once every 10 years.

(c) The provisions of this rule shall not apply to non-profit organizations created for the support of individual state historic sites. Such organizations are subject to regulation in §16.7 of this title (relating to Friends Organizations).


Source Note: The provisions of this §11.9 adopted to be effective December 31, 1984, 9 TexReg 6315; amended to be effective July 9, 1996, 21 TexReg 5971; amended to be effective November 29, 2006, 31 TexReg 9599; amended to be effective September 2, 2013, 38 TexReg 5709

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