TITLE 34. PUBLIC FINANCE

PART 11. TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM

CHAPTER 308. BENEFITS FROM THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM

34 TAC §308.4

The State Board of Trustees of the Texas Emergency Services Retirement System (System) proposes amendments to 34 TAC §308.4 to clarify the award of nonservice death benefits and provide a benefit to the surviving spouse of an inactive, vested member who dies before applying for a retirement benefit.

The proposed amendments to §308.4 clarify the award of nonservice death benefits to surviving spouses of active and inactive, vested members of the System.

The proposed amendments to §308.4 also make all beneficiary designations null and void once a member is terminated from all participating departments, to ensure the proper and efficient administration of the System with respect to the benefits for surviving spouses of inactive, vested members of the System.

The objective of the proposed amendments to §308.4 is to permit the surviving spouse of an inactive, vested member who was eligible to retire but died before submitting an application for retirement to apply for a benefit. Currently, a surviving spouse of an inactive, vested member who at the time of death was older than the minimum service retirement age of 55 years is not eligible to apply for a benefit.

Kevin Deiters, Executive Director has determined that the public benefit in the first five years this amended rule takes effect is to enable the provision of a benefit annuity to surviving spouses of certain deceased vested members who, at the time of death, were older than age 55 had not applied for a retirement benefit. Such surviving spouses are not eligible to apply for a surviving spouse benefit under the current Rule.

The adoption of the rule will not create an adverse effect upon small businesses, rural communities, or the general public, nor will the adoption of this rule impose an additional cost upon regulated persons. Administration of the amended §308.4 does not have foreseeable implications relating to the costs or revenues of the state, and does not have such implication on local governments.

During the first five years after adoption, this amended rule will not create or eliminate a government program, create or eliminate an employee position, require an increase or decrease in future legislative appropriations to the agency, increase or decrease fees paid to the agency, create a new regulation, or affect existing regulations. This amended rule will increase the number of individuals subject to the rule's applicability, and will positively affect the economy through increased payments to the surviving spouses of deceased retirees.

Comments on the amended rule must be submitted via writing to Kevin Deiters, Executive Director, Texas Emergency Services Retirement System, P.O. Box 12577, Austin, Texas 78711-2577, submitted electronically to outreach@tesrs.texas.gov, submitted electronically on the System's website: www.tesrs.texas.gov, or faxed to (512) 936-3480 no later than January 28, 2017.

The proposed amendment to §308.4 is proposed under the statutory authority of Title 8, Texas Government Code, Subsection H, Texas Emergency Services Retirement System, §864.007, and §864.009 concerning member nonservice death and retiree death benefits.

§308.4.Death Benefits.

(a) The surviving spouse and dependents of a member who dies as a result of performing emergency service duties is entitled to the benefit provided under §864.006, Government Code. The beneficiary of an active member who dies as a result of performing emergency service duties is entitled to a lump-sum benefit of $60,000.

(b) Except as otherwise elected under subsection (c) or (d) of this section, the [The] beneficiary of a deceased active member whose death did not result from the performance of emergency service duties, including a member whose death resulted from the performance of active military duty, is entitled to: the sum of the amount that has been contributed on the decedent's behalf from whatever source at the time of the member's death and the amount that would have been contributed by a department after the member's death, based on the department's contribution rate at the time of the member's death, at the end of the period required for full service retirement benefits, but in no event less than the total amount that has actually been contributed on the member's behalf.

(c) In lieu of the benefit provided by subsection (b) of this section, if the surviving spouse is the designated beneficiary[, the surviving spouse] of a deceased member (i) who dies as an active member of a participating department, (ii) whose death did not result from the performance of emergency service duties and (iii) who had attained [ before retirement but after meeting ] the minimum age and service requirements under Rule §308.1 for a full or partial service retirement as of the date of death, the surviving spouse may elect to receive two-thirds of the monthly annuity for a full or partial retirement, as applicable, that the decedent would have received if the decedent had retired on the date of death.

(d) In lieu of the benefit provided by subsection (b) of this section, if the surviving spouse is the designated beneficiary[, the surviving spouse] of a deceased member (i) who dies as an active member of [after meeting] a participating department, (ii) whose death did not result from the performance of emergency service duties, and (iii) who had attained the minimum service requirements, but had not attained the minimum age requirement under Rule §308.1 for a full or partial service retirement as of the date of death, the surviving spouse [§308.2, but before attaining the age of 55,] may elect to receive a death benefit annuity, beginning on the later of the date on which the decedent would have attained the minimum age requirement [turned 55] or the date the surviving spouse applies for the annuity, equal to two-thirds of the monthly annuity for a full or partial retirement, as applicable, to which the decedent would have been entitled on the date that the member would have attained the minimum age requirement [that date. This annuity is payable whether the deceased member, at the time of death, was active in a participating department or had terminated service with all participating departments].

(e) All beneficiary designations of a member will become null and void upon such member's termination from service with all participating departments. No designated beneficiary is entitled to a death benefit under this section following a member's termination of service from all participating departments.

(f) The surviving spouse of a deceased member who dies after terminating service, but before commencing a service retirement annuity from the pension system under Rule §308.2, is entitled to receive upon application to the pension system (i) the death benefit annuity described in subsection (c) of this section if the deceased member had attained the minimum age and service requirements under Rule §308.1 for a full or partial service retirement as of the date of death or (ii) the death benefit annuity described in subsection (d) of this section if the deceased member had attained the minimum service requirements, but had not attained the minimum age requirement under Rule §308.1 for a full or partial service retirement as of the date of death, beginning on the dates described in subsection (d) of this section. The surviving spouse of a deceased member is entitled to the benefit under this subsection even if the surviving spouse was not the designated beneficiary of the deceased member upon termination of active service from all participating departments.

(g) [e] The surviving spouse of a person who dies after commencing a service retirement annuity from the pension system under Rule §308.2 is entitled to the benefit provided by §864.009, Government Code.

(h) [f] For beneficiary designations made after September 1, 2015, a member who is married and designates a beneficiary other than his or her spouse must obtain written spousal consent for such beneficiary designation in a manner as determined by the pension system.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 11, 2017.

TRD-201705065

Kevin Deiters

Executive Director

Texas Emergency Services Retirement System

Earliest possible date of adoption: January 28, 2018

For further information, please call: (512) 936-3372


CHAPTER 310. ADMINISTRATION OF THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM

34 TAC §310.9

The State Board of Trustees of the Texas Emergency Services Retirement System (System) proposes amendments to Rule §310.9, regarding Periodic Reports and Administrative Penalties, in order to correct the language in the rule to follow statute more closely.

The objective of the proposed amendment to §310.9 is to remove a provision of the current rule in order to follow statute, providing Local Boards affected by administrative penalties the ability to exercise their due process in a contested case as defined by Chapter 2001 of the Government Code. According to Title 8, Texas Government Code, Subsection H, Texas Emergency Services Retirement System, §864.016, the State Board of Trustees may calculate an administrative penalty for late periodic reports and required reports and create a process for imposing such a penalty. However, after appeal to the Executive Director and the State Board, any further proceedings on the appeal and enforcement of an administrative penalty shall be considered a contested case under Title 10, Texas Government Code, Subsection A, Administrative Procedure and Practice, §2001. Therefore §310.9(f), which states that a determination by the State Board cannot be appealed to another court or legal process, must be removed in order for the System to follow the requirements of statute.

Kevin Deiters, Executive Director, has determined that the public benefit in the first five years this amended rule takes effect is to align the System more fully with statute, and to provide clarity to participating departments regarding administrative penalties.

The adoption of the amendments to this rule will not create an adverse effect upon small businesses, rural communities, or the general public. The adoption of amendments to Rule §310.9 will not impose an additional cost upon regulated persons. Administration of the amended §310.9 does not have foreseeable implications relating to the costs or revenues of the state, and does not have such implication on local governments.

During the first five years after adoption, this amended rule will not create or eliminate a government program, create or eliminate an employee position, require an increase or decrease in future legislative appropriations to the agency, increase or decrease fees paid to the agency, create a new regulation, affect existing regulations, increase or decrease the number of individuals affected, or affect the state's economy.

Comments on the amended rule must be submitted via writing to Kevin Deiters, Executive Director, Texas Emergency Services Retirement System, P.O. Box 12577, Austin, TX 78711-2577; submitted electronically to outreach@tesrs.texas.gov; submitted electronically on the System's website: www.tesrs.texas.gov; or faxed to (512) 936-3480, no later than January 28, 2018.

The amendment to §310.9 is proposed under the statutory authority of Title 8, Texas Government Code, Subsection H, Texas Emergency Services Retirement System, §864.016, concerning Periodic Reports and Administrative Penalties.

§310.9.Periodic Reports; Administrative Penalties.

(a) The Executive Director shall require periodic reports of local boards. The Executive Director shall specify the content to ensure the ability of the state board and the Executive Director to administer the pension system in a manner that uses fund assets in a manner required by statute.

(b) A report required in accordance with this section is late if it is not received by the Executive Director before the end of the month following the last month required to be covered in the report.

(c) An administrative penalty is imposed on each late periodic report required in accordance with this section. The penalty is $500 for each violation, except that a surcharge of $100 will be added to the penalty for each month the report remains late.

(d) The Executive Director may waive an administrative penalty under this section if the Executive Director determines, after a written request by a local board for a waiver, that the delay in reporting was beyond the control of the entities responsible for preparing and submitting the report and was not the result of neglect, indifference, or lack of diligence.

(e) A local board may appeal the Executive Director's denial of a waiver to the state board to be determined at the board's next scheduled meeting. On appeal to the state board, the board is subject to the same standard for determination as the Executive Director but may in its discretion accept additional information from the local board.

[(f) A determination by the state board on appeal under this section may not be appealed to a court and is not subject to any other legal process.]

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 11, 2017.

TRD-201705066

Kevin Deiters

Executive Director

Texas Emergency Services Retirement System

Earliest possible date of adoption: January 28, 2018

For further information, please call: (512) 936-3372


PART 12. STATE EMPLOYEE CHARITABLE CAMPAIGN

CHAPTER 326. CAMPAIGN MANAGEMENT

34 TAC §326.7

The State Policy Committee (SPC) of the Texas State Employee Charitable Campaign (SECC) proposes new §326.7, concerning state campaign manager.

The proposed new rule provides that the state campaign manager (SCM) shall carry out the duties of a local campaign manager (LCM) if an LCM is not appointed for a campaign area or is unable to carry out its duties.

Carolyn Beck, Certifying Officer for the SPC, has determined that, for the first five-year period that the new rule is in effect, there are no foreseeable fiscal implications for state or local governments or for rural communities as a result of enforcing or administering the new section.

Ms. Beck also has determined that, for each year of the first five years the proposed new rule is in effect, the public benefit anticipated as a result of enforcing the new section will be consistency in the campaign statewide and continuing the ability of state employees in local communities to participate in the campaign even in the absence of a local campaign manager. 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 new section as proposed.

Government Growth Impact Statement. For each year of the first five years that the rule will be in effect, and except as otherwise described in this statement, the rule will not create or eliminate a government program; require the creation of new employee positions or the elimination of existing employee positions; require an increase or decrease in future legislative appropriations to the agency; increase or decrease fees paid to the committee; create a new regulation; expand, limit, or repeal existing regulations; increase or decrease the number of individuals subject to the rule's applicability; positively or adversely affect this state's economy.

Comments on the proposal may be submitted to Greg Bennett, SECC State Campaign Manager, United Ways of Texas, 1910 E. Martin Luther King Jr. Blvd., Austin, Texas 78702.

The new section is authorized under the authority of Government Code, §659.139 and §659.140(8), which require the SPC to establish policies and procedures to ensure that the state employee charitable campaign is managed fairly and equitably, and which require the campaign to be run in accordance with those policies and procedures. The SPC interprets these statutes to authorize the adoption of rules to the extent that the policies and procedures the SPC adopts 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, or state employees.

The proposed new rule also implements and relates to Government Code, §650.140(e)(1)(C) concerning to the appointment of local campaign managers, and Government Code, §659.141, relating to the duties of the state campaign manager.

§326.7.State Campaign Manager.

In the event a local campaign manager is not appointed or is not able to carry out its duties, the state campaign manager shall assume those duties.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 12, 2017.

TRD-201705071

Carolyn Beck

Certifying Officer, State Policy Committee

State Employee Charitable Campaign

Earliest possible date of adoption: January 28, 2018

For further information, please call: (512) 475-0387


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

34 TAC §329.5

The State Policy Committee (SPC) of the Texas State Employee Charitable Campaign (SECC) proposes an amendment to §329.5, concerning re-certification requirements.

The proposed amendment deletes the requirement that an applicant organization provide a 3-year history of the percentage of annual revenue that the organization has spent on administrative expenses. The SPC originally added this requirement when the SECC law authorized SPC to grant waivers to organizations that exceeded the 25% ceiling on the percentage of revenues that an organization may spend on administrative expenses. The law allowed a waiver if the organization could provide a reasonable plan to reduce the administrative expenses to below 25% over a three year period. SECC law no longer allows for waivers, and so the organization need not provide with its recertification application a 3-year history on administrative expenses.

Carolyn Beck, Certifying Officer for the SPC, has determined that, for the first five-year period that the proposed amendment is in effect, there are no foreseeable fiscal implications for state or local governments or for rural communities as a result of enforcing or administering the amended section.

Ms. Beck also has determined that, for each year of the first five years the proposed amendment is in effect, the public benefit anticipated as a result of enforcing the amended section will be that the rule more closely tracks the SECC law. 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 amended section as proposed.

Government Growth Impact Statement. For each year of the first five years that the rule will be in effect, and except as otherwise described in this statement, the rule will not create or eliminate a government program; require the creation of new employee positions or the elimination of existing employee positions; require an increase or decrease in future legislative appropriations to the agency; increase or decrease fees paid to the committee; create a new regulation; expand, limit, or repeal existing regulations; increase or decrease the number of individuals subject to the rule's applicability; positively or adversely affect this state's economy. However, the rule repeals a regulation to the extent that it repeals the waiver procedure the SPC performed under prior law.

Comments on the proposal may be submitted to Greg Bennett, SECC State Campaign Manager, United Ways of Texas, 1910 E. Martin Luther King Jr. Blvd., Austin, Texas 78702.

The proposed amendment is authorized under the authority of Government Code, §659.139 and §659.140(8), which require the SPC to establish policies and procedures to ensure that the state employee charitable campaign is managed fairly and equitably, and which require the campaign to be run in accordance with those policies and procedures. The SPC interprets these statutes to authorize the adoption of rules to the extent that the policies, guidelines and procedures the SPC adopts 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, or state employees.

The proposed amendment implements and relates to Government Code, §659.146, which relates to eligibility of charitable organizations to participate in the SECC, generally, and in the statewide SECC, specifically, and which imposes a 25% ceiling on administrative and fundraising expenses.

§329.5.Re-certification Requirements.

(a) To be eligible to participate in the State Employee Charitable Campaign and apply via the re-certification process:

(1) the statewide federation/fund and affiliates must have not spent more than 25% of their annual revenue for administrative and fund raising expenses in the prior year's campaign; and

(2) statewide federation/fund and affiliates must have participated in the prior year's State Employee Charitable Campaign.

(b) To participate in the State Employee Charitable Campaign via the re-certification process the statewide federation/fund must submit the following:

(1) letter from the State Policy Committee stating eligibility to apply to the State Employee Charitable Campaign via the re-certification process;

[(2) organization information page including 3-year history of administrative expense percentages;]

(2) [(3)] all documentation in compliance with §329.1 of this title (relating to Audit and Review Requirements); and

(3) [(4)] current operating budget.

(c) To participate in the State Employee Charitable Campaign via the re-certification process, the affiliate charitable organization must submit the following:

(1) letter from the State Policy Committee stating eligibility to apply to the State Employee Charitable Campaign via the re-certification process; and

[(2) affiliate information page including 3-year history of administrative expense percentages; and]

(2) [(3)] Internal Revenue Service (IRS) Form 990, specifically, all pages of the Form 990 preceding and including the signature page, which shall contain the signature and attestation of the individual preparing the form. The form must be less than 18 months old.

(d) To participate in the State Employee Charitable Campaign via the re-certification process the affiliate charitable organization must submit a complete application to the statewide federation/fund.

(e) A complete application with all documentation shall be maintained by the statewide federation/fund for 3 years from the date of application. The SPC may conduct a random audit of any and all documentation prior to and subsequent to approval of the federation/fund or affiliate for any year's State Employee Charitable campaign.

(f) Every third year, the statewide federation/fund must submit a complete application for the federation/fund and affiliates.

(g) Each re-certification application is subject to review and approval or rejection by the current State Policy Committee, is subject to the rules then in effect, and can be denied for any of the reasons that a full application can be denied.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 12, 2017.

TRD-201705072

Carolyn Beck

Certifying Officer, State Policy Committee

State Employee Charitable Campaign

Earliest possible date of adoption: January 28, 2018

For further information, please call: (512) 475-0387


34 TAC §329.11

The State Policy Committee (SPC) of the Texas State Employee Charitable Campaign (SECC) proposes new §329.11, concerning limitations on the use of contributions.

The proposed new rule provides that to be eligible to participate in the campaign a charitable organization must affirm and demonstrate that it will use SECC donations to provide health and human services as defined in the SECC statute. The new rule also restates the statutory prohibition on the use of SECC donations to fund litigation and on expenditures of SECC donations that would require the organization to register as a lobbyist if the organization were not exempt from such registration.

Carolyn Beck, Certifying Officer for the SPC, has determined that, for the first five-year period that the proposed new rule is in effect, there are no foreseeable fiscal implications for state or local governments or for rural communities as a result of enforcing or administering the new section.

Ms. Beck also has determined that, for each year of the first five years the proposed new rule is in effect, the public benefit anticipated as a result of enforcing the new section will be greater likelihood that applications will comply with statutory requirements as a result of reiteration of the statutory requirements in the eligibility guidelines SPC adopts. 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 new section as proposed.

Government Growth Impact Statement. For each year of the first five years that the rule will be in effect, and except as otherwise described in this statement, the rule will not create or eliminate a government program; require the creation of new employee positions or the elimination of existing employee positions; require an increase or decrease in future legislative appropriations to the agency; increase or decrease fees paid to the committee; create a new regulation; expand, limit, or repeal existing regulations; increase or decrease the number of individuals subject to the rule's applicability; positively or adversely affect this state's economy.

Comments on the proposal may be submitted to Greg Bennett, SECC State Campaign Manager, United Ways of Texas, 1910 E. Martin Luther King Jr. Blvd., Austin, Texas 78702.

The proposed new rule is authorized under the authority of Government Code, §659.139 and §659.140(8), which require the SPC to establish policies and procedures to ensure that the state employee charitable campaign is managed fairly and equitably, and which require the campaign to be run in accordance with those policies and procedures. The amendments also are authorized under the authority of Government Code, §659.146(f) and §659.147(e), which require the SPC to develop guidelines for evaluation of applications based on eligibility criteria under those sections and under §659.150, relating to the limitation on the use of contributions. The SPC interprets these statutes to authorize the adoption of rules to the extent that the policies, guidelines and procedures the SPC adopts 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, or state employees.

The proposed new rule implements and relates to Government Code, §§659.146, 659.147, and 659.150.

§329.11.Limitation on the Use of Contributions.

(a) To be eligible to participate in a state employee charitable campaign (SECC), a charitable organization must affirm and provide sufficient documentation in its application demonstrating that it will use SECC contributions only to provide "health and human services" or to fund a charitable organization that provides " health and human services" as that term is defined in Government Code, §659.131. The State Policy Committee (SPC) may deny a statewide federation/fund or affiliate's application on the basis that sufficient documentation was not provided to demonstrate compliance with this section.

(b) A participating charitable organization may not use SECC contributions to:

(1) directly or indirectly fund litigation; or

(2) make expenditures that would require the organization to register under Government Code, Chapter 305 if the organization were not an entity exempt from registration under that chapter.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 12, 2017.

TRD-201705073

Carolyn Beck

Certifying Officer, State Policy Committee

State Employee Charitable Campaign

Earliest possible date of adoption: January 28, 2018

For further information, please call: (512) 475-0387


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

34 TAC §330.7

The State Policy Committee (SPC) of the Texas State Employee Charitable Campaign (SECC) proposes an amendment to §330.7, concerning re-certification requirements.

The proposed amendment deletes the requirement that an applicant for participation in the local SECC campaign provide a 3-year history of the percentage of annual revenue that the organization has spent on administrative expenses. The SPC originally added this requirement when the SECC law authorized SPC to grant waivers to organizations that exceeded the 25% ceiling on the percentage of revenues that an organization may spend on administrative expenses. The law allowed a waiver if the organization could provide a reasonable plan to reduce the administrative expenses to below 25% over a three year period. SECC law no longer allows for waivers, and so the organization need not provide with its recertification application a 3-year history on administrative expenses expressed in percentages.

Carolyn Beck, Certifying Officer for the SPC, has determined that, for the first five-year period that the proposed amendment is in effect, there are no foreseeable fiscal implications for state or local governments or for rural communities as a result of enforcing or administering the amended section.

Ms. Beck also has determined that, for each year of the first five years the proposed amendment is in effect, the public benefit anticipated as a result of enforcing the amended section will be that the rule more closely tracks the SECC law. 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 amended section as proposed.

Government Growth Impact Statement. For each year of the first five years that the rule will be in effect, and except as otherwise described in this statement, the rule will not create or eliminate a government program; require the creation of new employee positions or the elimination of existing employee positions; require an increase or decrease in future legislative appropriations to the agency; increase or decrease fees paid to the committee; create a new regulation; expand, limit, or repeal existing regulations; increase or decrease the number of individuals subject to the rule's applicability; positively or adversely affect this state's economy. The rule repeals, as unnecessary, a requirement that applicants provide a three-year history of information related to administrative expenses.

Comments on the proposal may be submitted to Greg Bennett, SECC State Campaign Manager, United Ways of Texas, 1910 E. Martin Luther King Jr. Blvd., Austin, Texas 78702.

The proposed amendment is authorized under the authority of Government Code, §659.139 and §659.140(8), which require the SPC to establish policies and procedures to ensure that the state employee charitable campaign is managed fairly and equitably, and which require the campaign to be run in accordance with those policies and procedures. The SPC interprets these statutes to authorize the adoption of rules to the extent that the policies, guidelines and procedures the SPC adopts 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, or state employees. The amendment also is authorized under the authority of Government Code, §659.147(e), which requires the SPC to develop guidelines for evaluation of applications for participation in the local campaign based on eligibility criteria under that section.

The proposed amendment implements and relates to Government Code, §659.146, which relates to eligibility of charitable organizations to participate in the SECC, generally, and which imposes a 25% ceiling on administrative and fundraising expenses.

§330.7.Re-certification Requirement.

(a) To be eligible to participate in the State Employee Charitable Campaign and apply via the recertification process:

(1) the local federation/fund and affiliates must have participated in the previous year's campaign; and

(2) the local federation/fund and affiliates must have not spent more than 25% of its annual revenue for administrative and fund raising expenses in the prior year's campaign.

(b) To participate in the State Employee Charitable Campaign via the re-certification process the local federation/fund must submit the following:

(1) letter from the State Policy Committee stating eligibility to apply to the state employee charitable campaign via the re-certification process;

[(2) organization information page including 3-year history of administrative expense percentages;]

(2) [(3)] all documentation in compliance with §330.1 of this title (relating to Audit and Review Requirements); and

(3) [(4)] current operating budget.

(c) To participate in the State Employee Charitable Campaign via the re-certification process, the affiliate charitable organization must submit the following:

(1) letter from the State Policy Committee stating eligibility to apply to the state employee charitable campaign via the re-certification process; and

(2) affiliate information page including 3-year history of administrative expense percentages; and]

(2) [(3)] Internal Revenue Service (IRS) Form 990, specifically, all pages of the Form 990 preceding and including the signature pages, which shall contain the signature and attestation of the individual preparing the form. The form must be less than 18 months old.

(d) To participate in the State Employee Charitable Campaign via the re-certification process the affiliate charitable organization must submit a full application to the local federation/fund.

(e) A complete application with all documentation shall be maintained by the local federation/fund for 3 years after the date of application. The LEC or the SPC may conduct a random audit of any and all documentation prior to and subsequent to approval of the federation/fund or affiliate for any year's state employee charitable campaign.

(f) Every third year, the local federation/fund will be required to submit a complete application for the federation/fund and affiliates.

(g) A local unaffiliated charitable organization is not eligible to apply to the State Employee Charitable Campaign via the re-certification process at any time. A full application with all required documentation must be submitted each year.

(h) Each re-certification application is subject to review and approval or rejection by the current State Policy Committee or Local Employee Committee, is subject to the rules then in effect, and can be denied for any of the reasons that a full application can be denied.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 12, 2017.

TRD-201705074

Carolyn Beck

Certifying Officer, State Policy Committee

State Employee Charitable Campaign

Earliest possible date of adoption: January 28, 2018

For further information, please call: (512) 475-0387


34 TAC §330.11

The State Policy Committee (SPC) of the Texas State Employee Charitable Campaign (SECC) proposes new §330.11, concerning limitations on the use of contributions.

The proposed new rule provides that to be eligible to participate in a local campaign a local charitable organization must affirm and demonstrate that it will use SECC donations to provide health and human services as defined in the SECC statute. The new rule also restates the statutory prohibition on the use of SECC donations to fund litigation and on expenditures of SECC donations that would require the local organization to register as a lobbyist if the organization were not exempt from such registration.

Carolyn Beck, Certifying Officer for the SPC, has determined that, for the first five-year period that the proposed amendment and new rule are in effect, there are no foreseeable fiscal implications for state or local governments or for rural communities as a result of enforcing or administering the new section.

Ms. Beck also has determined that, for each year of the first five years the proposed new rule is in effect, the public benefit anticipated as a result of enforcing the new section will be greater likelihood that applications will comply with statutory requirements as a result of reiteration of the statutory requirements in the eligibility guidelines. 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 amended or new section as proposed.

Government Growth Impact Statement. For each year of the first five years that the rule will be in effect, and except as otherwise described in this statement, the rule will not create or eliminate a government program; require the creation of new employee positions or the elimination of existing employee positions; require an increase or decrease in future legislative appropriations to the agency; increase or decrease fees paid to the committee; create a new regulation; expand, limit, or repeal existing regulations; increase or decrease the number of individuals subject to the rule's applicability; positively or adversely affect this state's economy.

Comments on the proposals may be submitted to Greg Bennett, SECC State Campaign Manager, United Ways of Texas, 1910 E. Martin Luther King Jr. Blvd., Austin, Texas 78702.

The proposed new rule is authorized under the authority of Government Code, §659.139 and §659.140(8), which require the SPC to establish policies and procedures to ensure that the state employee charitable campaign is managed fairly and equitably, and which require the campaign to be run in accordance with those policies and procedures. The amendments also are authorized under the authority of Government Code, §659.146(f) and §659.147(e), which require the SPC to develop guidelines for evaluation of applications based on eligibility criteria under those sections and under §659.150, relating to the limitation on the use of contributions. The SPC interprets these statutes to authorize the adoption of rules to the extent that the policies, guidelines and procedures the SPC adopts 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, or state employees.

The proposed new rule implements and relates to Government Code, §§659.146, 659.147, and 659.150.

§330.11.Limitation on the Use of Contributions.

(a) To be eligible to participate in a state employee charitable campaign (SECC), a local charitable organization must affirm and provide sufficient documentation in its application demonstrating that it will use SECC contributions only to provide "health and human services" or to fund a charitable organization that provides "health and human services" as that term is defined in Government Code, §659.131. The State Policy Committee (SPC) or Local Employee Committee (LEC), as applicable, may deny a local charitable organization's application on the basis that sufficient documentation was not provided to demonstrate compliance with this section.

(b) A participating charitable organization may not use SECC contributions to:

(1) directly or indirectly fund litigation; or

(2) make expenditures that would require the organization to register under Government Code, Chapter 305 if the organization were not an entity exempt from registration under that chapter.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 12, 2017.

TRD-201705076

Carolyn Beck

Certifying Officer, State Policy Committee

State Employee Charitable Campaign

Earliest possible date of adoption: January 28, 2018

For further information, please call: (512) 475-0387


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

34 TAC §331.1

The State Policy Committee (SPC) of the Texas State Employee Charitable Campaign (SECC) proposes an amendment to §331.1, concerning administrative review.

The proposed amendment provides for the SPC to approve a waiver or extension from any deadline the SPC imposes.

Carolyn Beck, Certifying Officer for the SPC, has determined that, for the first five-year period that the proposed amendment is in effect, there are no foreseeable fiscal implications for state or local governments or for rural communities as a result of enforcing or administering the amended section.

Ms. Beck also has determined that, for each year of the first five years the proposed amendment is in effect, the public benefit anticipated as a result of enforcing the amended section will be that the SPC may be more likely to consider certain application- and appeal-related matters when good cause exists. 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 amended section as proposed.

Government Growth Impact Statement. For each year of the first five years that the rule will be in effect, and except as otherwise described in this statement, the rule will not create or eliminate a government program; require the creation of new employee positions or the elimination of existing employee positions; require an increase or decrease in future legislative appropriations to the agency; increase or decrease fees paid to the committee; create a new regulation; expand, limit, or repeal existing regulations; increase or decrease the number of individuals subject to the rule's applicability; positively or adversely affect this state's economy.

Comments on the proposal may be submitted to Greg Bennett, SECC State Campaign Manager, United Ways of Texas, 1910 E. Martin Luther King Jr. Blvd., Austin, Texas 78702.

The proposed amendment is authorized under the authority of Government Code, §659.139 and §659.140(8), which require the SPC to establish policies and procedures to ensure that the state employee charitable campaign is managed fairly and equitably, and which require the campaign to be run in accordance with those policies and procedures. The SPC interprets these statutes to authorize the adoption of rules to the extent that the policies, guidelines and procedures the SPC adopts 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, or state employees.

The proposed amendment implements and relates to Government Code, §659.146 related to eligibility of charitable organizations to participate, generally, and in the statewide SECC.

§331.1.Administrative Review.

The State Campaign Manager (SCM) will perform an administrative review of statewide applications. This is an administrative review only to determine whether applications are complete and contain the required documentation. The SCM will not decide whether an application is eligible for approval. Statewide federations that submit incomplete applications or missing documentation will be notified and provided a deadline within which to provide missing or corrected information. Only complete applications with all required documentation received by the deadline will be submitted to the State Policy Committee (SPC) for eligibility approval. Deadlines will be enforced; provided, however, that upon a showing of good cause, the SPC may grant a waiver or extension of any deadline by two-thirds vote of the committee members present. The SCM shall prepare a report of all applications that were not submitted to SPC for approval because of incomplete application or missing documentation. The report shall be provided to the SPC prior to the meeting during which other applications will be considered for approval.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 12, 2017.

TRD-201705077

Carolyn Beck

Certifying Officer, State Policy Committee

State Employee Charitable Campaign

Earliest possible date of adoption: January 28, 2018

For further information, please call: (512) 475-0387


34 TAC §331.3

The State Policy Committee (SPC) of the Texas State Employee Charitable Campaign (SECC) proposes an amendment to §331.3, concerning eligibility review by the state policy committee.

The proposed amendment sets forth the guidelines the SPC follows in reviewing applications for participation in the statewide campaign of the SECC. The guidelines interpret and construe certain statutory definitions that constitute eligibility criteria. The guidelines clarify how the SPC will apply those criteria to the descriptions that applicant organizations provide of the services they deliver. The proposed amendment also re-letters subsection (b) to become (c), and it shortens the heading of the section to remove the words, "by the State Policy Committee."

Carolyn Beck, Certifying Officer for the SPC, has determined that, for the first five-year period that the proposed amendment is in effect, there are no foreseeable fiscal implications for state or local governments or for rural communities as a result of enforcing or administering the amended section.

Ms. Beck also has determined that, for each year of the first five years the proposed amendment is in effect, the public benefit anticipated as a result of enforcing the amended section will be that charitable organizations will be better informed about how the descriptions in their applications, of the services they provide, are viewed, applying statutory definitions. State employees that donate to the charities may be able to more easily see the connection between the services a charitable organization says it provides and the types of services the SECC law requires for an organization to be eligible to participate in the SECC campaign. 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 amended section as proposed.

Government Growth Impact Statement. For each year of the first five years that the rule will be in effect, and except as otherwise described in this statement, the rule will not create or eliminate a government program; require the creation of new employee positions or the elimination of existing employee positions; require an increase or decrease in future legislative appropriations to the agency; increase or decrease fees paid to the committee; create a new regulation; expand, limit, or repeal existing regulations; increase or decrease the number of individuals subject to the rule's applicability; positively or adversely affect this state's economy.

Comments on the proposal may be submitted to Greg Bennett, SECC State Campaign Manager, United Ways of Texas, 1910 E. Martin Luther King Jr. Blvd., Austin, Texas 78702.

The proposed amendment is authorized under the authority of Government Code, §659.139 and §659.140(8), which require the SPC to establish policies and procedures to ensure that the state employee charitable campaign is managed fairly and equitably, and which require the campaign to be run in accordance with those policies and procedures. Government Code, §659.146(f) also authorizes the SPC to adopt guidelines related to eligibility of charitable organizations for statewide participation. The SPC interprets these statutes to authorize the adoption of rules to the extent that the policies, guidelines and procedures the SPC adopts 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, or state employees.

The proposed amendment implements and relates to Government Code, §659.131(7), which defines the term "health and human services," §659.131(21), which defines "statewide charitable organization," and §659.146 related to eligibility of charitable organizations to participate, generally, and in the statewide SECC.

§331.3.Eligibility Review [by the State Policy Committee].

(a) The State Policy Committee (SPC) shall determine the eligibility of a federation or fund and its affiliated agencies for statewide participation in the state employee charitable campaign. In making its determination, the SPC shall consider whether the applicant:

(1) has timely submitted all required application materials;

(2) qualifies as a "statewide charitable organization" as that term is defined in Government Code, §659.131;

(3) satisfies applicable eligibility criteria set forth under Chapter 329 of this title; and

(4) satisfies other statutory and regulatory requirements prescribed by law.

(b) Health and Human Services. The SPC construes the statutory definition of "health and human services" and applies that definition to determine the eligibility of a charitable organization to participate in the SECC campaign. The term "health and human services" is construed and applied in accordance with the structure and guidelines set forth in this paragraph. To qualify as "health and human services" the services provided must benefit the residents of this state and must consist of one or more of the following:

(1) human care, which term includes health care, rehabilitation, restorative care, hospice care, respite care, and assistance with activities of daily living, and which includes physical, mental, and emotional assistance;

(2) medical research or other research. The research must be in one or more of the following fields:

(A) human health, which term includes physical, mental, and emotional wellbeing, and which includes various topics related to human health including, nutrition, wellness, exercise, disease, disorders, treatment, prevention of disease, and maintenance of health;

(B) education, which term includes special education, pedagogy, assessments, promotion of literacy, and assessment for and treatment of learning disabilities;

(C) social adjustment, which term includes an individual's ability to cope with standards, values, and needs of society and to adapt to a social environment; or

(D) rehabilitation, which term includes restorative care and follow-up care in nursing homes, halfway houses, inpatient facilities and patients' homes:

(3) relief for victims of natural disaster or other emergencies. Other emergencies refers to events and situations such as drought, fire, accidents, or epidemics, that may have an impact on the health, safety, or welfare of the general population or a specific segment of the population; and

(4) assistance to impoverished individuals in need of food, shelter, clothing, or other basic needs. Basic needs may include such things as education-related services and goods for pre-K through 12th grade, special education services for people with disabilities, and adult literacy.

(c) For purposes of the 25-word description, each part of a hyphenated term will count as a separate word. Applications that contain a description of more than 25 words will be denied approval by the SPC.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 12, 2017.

TRD-201705079

Carolyn Beck

Certifying Officer, State Policy Committee

State Employee Charitable Campaign

Earliest possible date of adoption: January 28, 2018

For further information, please call: (512) 475-0387


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

34 TAC §332.1

The State Policy Committee (SPC) of the Texas State Employee Charitable Campaign (SECC) proposes an amendment to §332.1, concerning administrative review.

The proposed amendment provides for the SPC to approve a waiver or extension from any deadline the SPC imposes in a local campaign.

Carolyn Beck, Certifying Officer for the SPC, has determined that, for the first five-year period that the proposed amendment is in effect, there are no foreseeable fiscal implications for state or local governments or for rural communities as a result of enforcing or administering the amended section.

Ms. Beck also has determined that, for each year of the first five years the proposed amendment is in effect, the public benefit anticipated as a result of enforcing the amended section will be that the SPC may be more likely to consider certain application- and appeal-related matters when good cause exists. 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 amended section as proposed.

Government Growth Impact Statement. For each year of the first five years that the rule will be in effect, and except as otherwise described in this statement, the rule will not create or eliminate a government program; require the creation of new employee positions or the elimination of existing employee positions; require an increase or decrease in future legislative appropriations to the agency; increase or decrease fees paid to the committee; create a new regulation; expand, limit, or repeal existing regulations; increase or decrease the number of individuals subject to the rule's applicability; positively or adversely affect this state's economy.

Comments on the proposal may be submitted to Greg Bennett, SECC State Campaign Manager, United Ways of Texas, 1910 E. Martin Luther King Jr. Blvd., Austin, Texas 78702.

The proposed amendment is authorized under the authority of Government Code, §659.139 and §659.140(8), which require the SPC to establish policies and procedures to ensure that the state employee charitable campaign is managed fairly and equitably, and which require the campaign to be run in accordance with those policies and procedures. The SPC interprets these statutes to authorize the adoption of rules to the extent that the policies, guidelines and procedures the SPC adopts 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, or state employees.

The proposed amendment implements and relates to Government Code, §659.147, related to eligibility of charitable organizations for local participation in the SECC.

§332.1.Administrative Review.

The Local Campaign Manager (LCM) [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 enforced; provided, however, that upon a showing of good cause, the LEC may grant a waiver or extension of any deadline by two-thirds vote of the committee members present. The LCM shall prepare a report of all applications that were not submitted to the LEC for approval because of incomplete application or missing documentation. The report shall be provided to the LEC prior to the meeting during which other applications will be considered for approval.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 12, 2017.

TRD-201705080

Carolyn Beck

Certifying Officer, State Policy Committee

State Employee Charitable Campaign

Earliest possible date of adoption: January 28, 2018

For further information, please call: (512) 475-0387


34 TAC §332.3

The State Policy Committee (SPC) of the Texas State Employee Charitable Campaign (SECC) proposes an amendment to §332.3, concerning eligibility review by the local employee committee.

The proposed amendment sets forth the guidelines the SPC follows in reviewing applications for participation in the statewide campaign of the SECC. The guidelines interpret and construe certain statutory definitions that constitute eligibility criteria. The guidelines clarify how the SPC will apply those criteria to the descriptions that applicant organizations provide of the services they deliver. The amendment also re-letters current paragraph (c) to become paragraph (d), adds a reference to the SPC in new paragraph (d), and it shortens the heading of the section to delete the words, "by the Local Employee Committee."

Carolyn Beck, Certifying Officer for the SPC, has determined that, for the first five-year period that the proposed amendment is in effect, there are no foreseeable fiscal implications for state or local governments or for rural communities as a result of enforcing or administering the amended section.

Ms. Beck also has determined that, for each year of the first five years the proposed amendment is in effect, the public benefit anticipated as a result of enforcing the amended section will be that charitable organizations will be better informed about how the descriptions in their applications, of the services they provide, are viewed, applying statutory definitions. State employees that donate to the charities may be able to more easily see the connection between the services a charitable organization says it provides and the types of services the SECC law requires for an organization to be eligible to participate in the SECC campaign. 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 amended section as proposed.

Government Growth Impact Statement. For each year of the first five years that the rule will be in effect, and except as otherwise described in this statement, the rule will not create or eliminate a government program; require the creation of new employee positions or the elimination of existing employee positions; require an increase or decrease in future legislative appropriations to the agency; increase or decrease fees paid to the committee; create a new regulation; expand, limit, or repeal existing regulations; increase or decrease the number of individuals subject to the rule's applicability; positively or adversely affect this state's economy.

Comments on the proposal may be submitted to Greg Bennett, SECC State Campaign Manager, United Ways of Texas, 1910 E. Martin Luther King Jr. Blvd., Austin, Texas 78702.

The proposed amendment is authorized under the authority of Government Code, §659.139 and §659.140(8), which require the SPC to establish policies and procedures to ensure that the state employee charitable campaign is managed fairly and equitably, and which require the campaign to be run in accordance with those policies and procedures. The amendment also is authorized by Government Code, §659.147(e), which authorizes the SPC to adopt guidelines related to eligibility of organizations to participate in the local SECC campaign. The SPC interprets these statutes to authorize the adoption of rules to the extent that the policies, guidelines and procedures the SPC adopts 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, or state employees.

The proposed amendment implements and relates to Government Code, §659.131(7), which defines the term "health and human services," §659.131(13), which defines "local charitable organization," and §659.146, which relates to the eligibility of charitable organizations to participate, generally, in the SECC, and §659.147, which relates to the eligibility of charitable organizations to participate in the local SECC campaign.

§332.3.Eligibility Review[ by the Local Employee Committee].

(a) The State Policy Committee (SPC), with the assistance of any applicable Local Employee Committee (LEC) appointed by the SPC, shall review applications submitted by local federations/funds, affiliated organizations, and other charitable organizations, and may approve an applicant for participation in a local campaign area only if the organization:

(1) meets the definition of a "local charitable organization" as that term is defined in Government Code, §659.131; and

(2) is either:

(A) an unaffiliated local organization; or

(B) a federation or fund or an affiliate of a federation or fund that is not approved for statewide participation.

(b) The SPC or LEC, as applicable, shall determine the eligibility of a charitable organization for local participation in the state employee charitable campaign (SECC). In making this determination, the SPC or LEC shall consider whether the applicant:

(1) has timely submitted all required application materials;

(2) satisfies applicable eligibility criteria set forth under Chapter 330 of this title; and

(3) satisfies other legal and regulatory requirements prescribed by law.

(c) Health and Human Services. The SPC and the LEC construe the statutory definition of "health and human services" and apply that definition to determine the eligibility of a charitable organization to participate in the SECC campaign. The term "health and human services" is construed and applied in accordance with the structure and guidelines set forth in this paragraph. To qualify as "health and human services" the services provided must benefit the residents of this state and must consist of one or more of the following:

(1) human care, which term includes health care, rehabilitation, restorative care, hospice care, respite care, and assistance with activities of daily living, and which includes physical, mental, and emotional assistance;

(2) medical research or other research. The research must be in one or more of the following fields:

(A) human health, which term includes physical, mental, and emotional wellbeing, and which includes various topics related to human health including, nutrition, wellness, exercise, disease, disorders, treatment, prevention of disease, and maintenance of health;

(B) education, which term includes special education, pedagogy, assessments, promotion of literacy, and assessment for and treatment of learning disabilities;

(C) social adjustment, which term includes an individual's ability to cope with standards, values, and needs of society and to adapt to a social environment; or

(D) rehabilitation, which term includes restorative care and follow-up care in nursing homes, halfway houses, inpatient facilities and patients' homes:

(3) relief for victims of natural disaster or other emergencies. Other emergencies refers to events and situations such as drought, fire, accidents, or epidemics, that may have an impact on the health, safety, or welfare of the general population or a specific segment of the population; and

(4) assistance to impoverished individuals in need of food, shelter, clothing, or other basic needs. Basic needs may include such things as education-related services and goods for pre-K through 12th grade, special education services for people with disabilities, and adult literacy.

(d) For purposes of the 25-word description, each part of a hyphenated term will count as a separate word. Applications that contain a description of more than 25 words will be denied approval by the LEC or the SPC, as applicable.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 12, 2017.

TRD-201705081

Carolyn Beck

Certifying Officer, State Policy Committee

State Employee Charitable Campaign

Earliest possible date of adoption: January 28, 2018

For further information, please call: (512) 475-0387