PART 1. OFFICE OF THE GOVERNOR
CHAPTER 3. PUBLIC SAFETY OFFICE [CRIMINAL JUSTICE DIVISION]
The Office of the Governor ("OOG") proposes amendments to 1 TAC §§3.1, concerning Applicability, 3.3, concerning Definitions, 3.5, concerning Submission Process, 3.7, concerning Selection Process, 3.9, concerning Funding Decisions, 3.11, concerning Grant and Supplemental Award Acceptance, 3.21, concerning Use of the Internet, 3.23, concerning Delegation of Authority, 3.73, concerning Matching Funds Policy, 3.75, concerning Personnel, 3.79, concerning Travel and Training, 3.81, concerning Equipment, 3.85, concerning Indirect Costs, 3.87, concerning Program Income, 3.2001, concerning Conditions of Funding, 3.2009, concerning Cooperative Working Agreement, 3.2013, concerning Pre-Approval Requirements for Procurement, 3.2021, concerning Resolutions, 3.2025, concerning Civil Rights Liaison, 3.2501, concerning Grant Officials, 3.2503, concerning Obligating Funds, 3.2505, concerning Retention of Records, 3.2507, concerning Financial Status Reports, 3.2509, concerning Equipment Inventory Reports, 3.2513, concerning Grant Adjustments, 3.2515, concerning Bonding, 3.2517, concerning Remedies for Noncompliance, 3.2519, concerning Grant Reduction or Termination, 3.2523, concerning Violations of Laws, 3.2525, concerning Evaluating Project Effectiveness, 3.2527, concerning Grantee Reports, 3.2529, concerning Grant Management, 3.2601, concerning Monitoring, 3.2603, concerning Audits Not Performed by CJD or COD, 3.8105, concerning General Powers, 3.8115, concerning Meetings, and 3.8305, concerning General Powers. The OOG identified the necessity of the proposed amendments during the Governor's Office's periodic review of 1 TAC Chapter 3, conducted pursuant to Texas Government Code §2001.039. The proposed amendments will harmonize rules with the structure and organization of the OOG, improve readability and clarity, and update rules to account for technological advancements within grant processes.
EXPLANATION OF PROPOSED AMENDMENTS
The rules under consideration relate to grant programs under the Criminal Justice Division and the Public Safety Office ("PSO") of the OOG.
The proposed amendments to §3.3 add definitions for additional committees, teams, and divisions within the OOG. The amendments also provide definitions for "eGrants system" and "simplified acquisition threshold." The amendments further relocate matching funds requirements from the definition of "matching funds" to §3.73.
The proposed amendments to §3.5 enable requests for applications to be posted on eGrants in addition to the Texas Register.
The proposed amendments to §3.7 clarify funding decision factors by providing more specificity.
The proposed amendments to §3.73 relocate requirements related to matching funds from the definition of "matching funds" in §3.3 to the rule governing the matching funds policy.
The proposed amendments to §3.75 clarify the rule and remove outdated language.
The proposed amendments to §3.79 clarify the rule and remove outdated language.
The proposed amendments to §3.81 remove an outdated provision.
The proposed amendments to §3.85 clarify language regarding indirect cost, and changes the permissible indirect cost rate from two percent to ten percent to mirror federally-accepted standards.
The proposed amendments to §3.2013 modifies the circumstance in which a grantee must submit a completed procurement questionnaire. Previously, a grantee would have to submit a completed procurement questionnaire when a procurement would exceed $150,000. Under the amendment, a grantee must submit a completed procurement questionnaire when the procurement exceeds the simplified acquisition threshold, as-defined in the amendments to §3.3.
The proposed amendments to §3.2021 relocate a provision requiring certain grantees to submit a new resolution when there is a change in a grant's designated authorized official to a new subsection (b). The amendments add conforming changes in response to the addition of the new subsection.
The proposed amendments to §3.2503 clarify the period of the grant.
The proposed amendments to §3.2505 clarify the record retention period for all financial records, supporting documents, statistical records, and all other records pertinent to the award.
The proposed amendments to §3.2519 clarify that the listed circumstances for termination constitute a non-exhaustive list of instances in which a grant may be terminated.
The proposed amendments to §3.2603 create a requirement to submit a Certification of Single Audit Reporting Requirement Exemption form in certain instances.
The proposed amendments to §3.8105 update statutory references.
The remaining proposed amendments replace the abbreviation "CJD" with "PSO" to reflect the structure and organization of the PSO. The remaining proposed amendments also clarify or remove outdated or unnecessary language from the rules, including using the word "shall" or "must" when provisions require certain behaviors or actions, and replacing the word "wishes" with "seeks" when describing instances in which an applicant or grantee intends to take a contemplated action.
FISCAL NOTE
Aimee Snoddy, Executive Director, Public Safety Office, has determined that during each year of the first five years in which the proposed amendments are in effect, there will be no expected fiscal impact on state and local governments as a result of enforcing or administering the proposed amendments.
Ms. Snoddy does not anticipate any measureable effect on local employment or the local economy as a result of the proposed amendments.
PUBLIC BENEFIT AND COSTS
Ms. Snoddy has also determined that during each year of the first five years in which the proposed amendments are in effect, the public benefits anticipated as a result of the amendments are publication of the structure of the PSO within OOG, clarification regarding eGrants and simplified acquisition thresholds, and enhanced allowable indirect costs.
Ms. Snoddy has determined there are no measurable anticipated economic costs to persons required to comply with the proposed amendments.
There will be no adverse economic effect on small businesses, micro-businesses, or rural communities. Since the OOG has determined that the proposed rule will have no adverse economic effect on small businesses, micro-businesses, or rural communities, preparation of an Economic Impact Statement and a Regulatory Flexibility Analysis, as detailed under Texas Government Code §2006.002, is not required.
GOVERNMENT GROWTH IMPACT STATEMENT
Ms. Snoddy has determined that during each year of the first five years in which the proposed amendments are in effect, the amendments:
1) will not create or eliminate a government program;
2) will not require the creation of new employee positions or the elimination of existing employee positions;
3) will not require an increase or decrease in future legislative appropriations to the OOG;
4) will not require an increase or decrease in fees paid to the OOG;
5) do not create a new regulation;
6) will expand, limit, or repeal a existing regulations;
7) will not increase or decrease the number of individuals subject to the applicability of the rules; and
8) will not positively or adversely affect the Texas economy.
TAKINGS IMPACT ASSESSMENT
The OOG has determined that no private real property interests are affected by the proposed rules and the proposed rules do not restrict, limit, or impose a burden on an owner's rights to the owner's private real property that would otherwise exist in the absence of government action. As a result, the proposed amendments do not constitute a taking or require a takings impact assessment under Government Code §2007.043.
SUBMISSION OF COMMENTS
Written comments regarding the proposed rule amendments may be submitted to Stephanie Greger, Assistant General Counsel, Office of the Governor, P.O. Box 12428, Austin, Texas 78711 or by email to stephanie.greger@gov.texas.gov with the subject line "Criminal Justice Division Rule Review." The deadline for receipt of comments is 5:00 p.m., Central Time, on April 4, 2021.
SUBCHAPTER A. GENERAL GRANT PROGRAM PROVISIONS
1 TAC §§3.1, 3.3, 3.5, 3.7, 3.9, 3.11, 3.21, 3.23
STATUTORY AUTHORITY
The amendments are proposed under Texas Government Code, §772.006(a)(10), which provides that the OOG shall adopt rules necessary to implement the requirements of Texas Government Code, §772.006.
CROSS REFERENCE TO STATUTE
Chapter 3, Subchapter A. No other statutes, articles, or codes are affected by the proposed amendments.
§3.1.Applicability.
Subchapters A through F of this chapter apply to all applications
for funding and grants submitted to the Public Safety Office
(PSO) [Criminal Justice Division (CJD)], Office of
the Governor (OOG). A PSO-funded grantee must
comply with the provisions of Subchapters A through F in effect on
the date the grant is awarded by the OOG [CJD],
unless a subsequent effective date is specified by the OOG [CJD] in an original grant award or a grant adjustment. Grantees
must comply with all applicable state and federal statutes, rules,
regulations, and guidelines. In instances where both federal and state
requirements apply to a grantee, the more restrictive requirement applies.
§3.3.Definitions.
(a) applicant: an agency or organization that has submitted a grant application or grant renewal documentation;
(b) approved budget categories: budget categories (including
personnel, contractual and professional services, travel, equipment,
construction, supplies and other direct operating expenses, and indirect
costs) that contain a line item with a dollar amount greater than
zero that is approved by the OOG [CJD] through
a grant award or a budget adjustment;
(c) CJAC: Criminal Justice Advisory Committee, a component
of a COG. A CJAC must have a multi-disciplinary representation of
members from the region. This representation must contain members
from the following groups: [concerned] citizens or parents, counties, municipalities, substance [drug] abuse
prevention, education, juvenile justice, law enforcement, mental health,
nonprofit organizations, prosecution or[/]courts,
and victim services. No single group or discipline may
constitute more than one-third (1/3) of the CJAC;
[(d) CJD: The Criminal Justice Division
of the Office of the Governor or its designee;]
[(e) COD: The Compliance and Oversight Division of the Office of the Governor or its designee;]
(d) [(f)] COG: a regional planning
commission, council of governments, or similar regional planning agency
created under Chapter 391, Texas Local Government Code;
(e) [(g)] computing devices:
machines used to acquire, store, analyze, process, and publish data
and other information electronically, including accessories (or "peripherals")
for printing, transmitting and receiving, or storing electronic information;
(f) [(h)] condition of funding:
a prerequisite placed on a grant because of a need for information,
clarification, or submission of an outstanding requirement of the
grant that may result in a hold being placed on the OOG [CJD]-funded portion of a grant project;
(g) eGrants: the online grant management system used by PSO grant programs;
(h) [(i)] equipment: tangible
personal property (including information technology systems) having
a useful life of more than one year and a per unit acquisition cost
which equals or exceeds the lesser of the capitalization level established
by the grantee for financial statement purposes or $5,000;
(i) [(j)] executive director:
the executive director of PSO who also serves in the capacity
required by Texas Government Code 772.006(b) [CJD];
(j) [(k)] grant funds: OOG [CJD]-funded and matching funds portions of a grant project;
(k) [(l)] grantee: an applicant
[agency or organization] that receives a grant award;
(l) HSAC: Homeland Security Advisory Committee, a component of a COG. HSACs must consist of representatives from counties, municipalities, non-profit organizations, disciplines, and/or other stakeholders from within the region who are knowledgeable about terrorism preparedness and the threats, vulnerabilities and consequences relevant to the COG region;
(m) indirect costs: those costs incurred for a common or joint purpose benefitting more than one cost objective, and not readily assignable to the cost objectives specifically benefitted, without effort disproportionate to the results achieved;
(n) information technology systems: computing devices, ancillary equipment, software, firmware, and similar procedures, services (including support services), and related resources;
(o) liquidation date: the date specified in an original grant award or a subsequent grant adjustment upon which a grantee must expend all outstanding liabilities;
(p) matching funds: the grantee's share of the project
costs. [Matching funds may either be cash or in-kind. Cash match
includes actual cash spent by the grantee and must have a cost relationship
to the award that is being matched. In-kind match includes the value
of donated services. An applicant's use of matching funds must comply
with the same statutes, rules, regulations, and guidelines applicable
to the use of the CJD-funded portion of a grant project];
(q) OCM: the Office of Compliance and Monitoring of the OOG;
(r) [(q)] OMB: the Executive
Office of the President of the United States, Office of Management
and Budget;
(s) OOG: the Office of the Governor;
(t) [(r)] program income: gross
income earned by the grantee that is directly generated by a supported
activity of the grant or earned as a result of the grant award
during the period of performance. Program income includes, but is
not limited to, forfeitures, fees for services performed, the use
of rental or real or personal property acquired under an award, the
sale of commodities or items fabricated under an award, and license
fees and royalties on patents and copyrights. Interest earned on advances
of grant funds is not program income. Except as otherwise
provided in applicable law, regulations or the terms and conditions
of the award, program income does not include rebates, credits, discounts
and interest earned on any of them;
(u) PSO: the Public Safety Office of the OOG. The PSO includes the following divisions:
(1) CJD: the Criminal Justice Division;
(2) CSTT: the Child Sex Trafficking Team;
(3) GAD: the Grants Administration Division; and
(4) HSGD: the Homeland Security Grants Division;
(v) [(s)] RFA: Request for Applications,
published in either eGrants or the Texas Register by PSO
[CJD];
(w) simplified acquisition threshold: the dollar amount below which an entity may purchase property or services using small purchase methods. The simplified acquisition threshold is set by the Federal Acquisition Regulation at 48 CFR Subpart 2.1 (Definitions) and in accordance with 41 U.S.C. 1908;
(x) [(t)] supplies: all tangible
personal property other than those described in accordance with §3.3(h)[(i)] of this chapter. A computing device is a
supply if the acquisition cost is less than the lesser of the capitalizations
level established by the grantee for financial statement purposes
or $5,000, regardless of the length of its useful life; and
(y) [(u)] UGMS: the Uniform Grant
Management Standards or the Texas Grant Management Standards,
as applicable.
§3.5.Submission Process.
(a) When applying for a grant pursuant to a RFA published by the PSO in either eGrants or the Texas Register [by CJD], applicants
must submit and certify their applications according to the requirements
provided in the RFA.
(b) Applications [CJD may also consider
application] for grants that are not submitted pursuant to an
RFA may also be considered. Applicants shall [will] be selected in accordance with §3.7(b) of this chapter.
(c) Applicants must apply for funds using the procedures,
forms, and certifications prescribed by PSO [CJD].
§3.7.Selection Process.
(a) All applications must be submitted [to CJD]
and certified by the applicant's authorized official. For applications
submitted and certified pursuant to an RFA, the PSO [executive
director] may select a review group, COG, or other designee
to prioritize the applications and submit a priority listing to the PSO [executive director, who will render the final funding
decision].
(b) PSO funding decisions shall be [For
applications certified by the applicant's authorized official, the
executive director will decide whether to fund the application]
based upon the following factors:
(1) cost effectiveness [the inherent
value of the project's impact];
(2) overall funding availability [whether
the project has the potential to be a model program]; [or]
(3) PSO or state government priorities and strategies;
(4) legislative directives;
(5) identified gaps in services or resources;
(6) geographic distributions;
(7) the inherent value of the project's impact;
(8) whether the project has the potential to be a model program;
(9) [(3)] whether delaying the
project would have a significant negative impact on the area proposed
to be served; and
(10) to the extent applicable, any additional factors listed in an RFA.
(c) For applications prioritized by a COG, the CJAC or
HSAC, as appropriate, must prioritize the applications and prepare
the priority listing. The COG's governing body must approve the priority
listing. The OOG shall [CJD will] make final
decisions on these applications based upon factors listed in
subsection (b) of this section.
(d) During the review of an application, applicants
may be instructed to [CJD may request that the applicant]
submit [any] additional information necessary to complete
the grant review. Such requests for information do not serve as notice
that the OOG [CJD] intends to fund an application. PSO [CJD] may make the necessary corrections to an
application to bring it into compliance with state or federal requirements.
Any corrections to an applicant's budget shall [will]
be reflected in the award documentation.
(e) Applicants shall be informed [CJD
will inform applicants] of decisions on their grant applications
through either a Statement of Grant Award or a notification of denial.
[For applications prioritized by a COG that do not receive funding
recommendations, the COG notification of the decision not to recommend
funding serves as the applicant's notification of denial.]
§3.9.Funding Decisions.
(a) All funding decisions made by the OOG [executive director] are final and are not subject to appeal.
The receipt of an application [by CJD] does not obligate the OOG [CJD] to fund the grant or to fund it at
the amount requested.
(b) Neither the approval of a project nor any grant
award shall obligate the OOG [CJD] in any way
to make any additional, supplemental, continuation, or other award.
§3.11.Grant and Supplemental Award Acceptance.
The award documentation constitutes obligation of funds for
use by the grantee in execution of the program or project covered
by the award. Such obligation may be terminated without cause if the
grantee's authorized official fails to accept the grant award within
45 calendar days of the date on which the OOG [CJD]
issues the Statement of Grant Award. PSO [CJD]
may extend this deadline upon [on] written request
from the applicant. Funds shall [will] not be
disbursed until acceptance of the grant by the grantee's authorized
official [grantee].
§3.21.Use of the Internet.
Applicants and grantees must [CJD requires
an applicant or grantee to] submit grant applications, progress
reports, financial reports, and other information, as applicable, to PSO [CJD] via the Internet or other electronic
means.
§3.23.Delegation of Authority.
The executive director may delegate his or her authority or PSO's
[CJD's] authority under this 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 February 22, 2021.
TRD-202100719
Aimee Snoddy
Executive Director, Public Safety Office
Office of the Governor
Earliest possible date of adoption: April 4, 2021
For further information, please call: (512) 463-2000
1 TAC §§3.73, 3.75, 3.79, 3.81, 3.85, 3.87
STATUTORY AUTHORITY
The amendments are proposed under Texas Government Code, §772.006(a)(10), which provides that the OOG shall adopt rules necessary to implement the requirements of Texas Government Code, §772.006.
CROSS REFERENCE TO STATUTE
Chapter 3, Subchapter B. No other statutes, articles, or codes are affected by the proposed amendments.
§3.73.Matching Funds Policy.
(a) If matching funds are required on a grant, an applicant must ensure that it possesses or can acquire the require matching funds. A contractor or participating entity may contribute toward the matching funds requirement, but the applicant bears the responsibility for satisfying the matching funds requirement.
(b) Matching funds may either be cash or in-kind. Cash match includes actual cash spent by the grantee and must have a cost relationship to the award that is being matched. In-kind match includes the value of donated services. An applicant's use of matching funds must comply with the same statutes, rules, regulations, and guidelines applicable to the use of the OOG-funded portion of a grant project.
§3.75.Personnel.
(a) PSO [CJD] shall determine
the reasonableness of requested salaries and reserves the right to
limit the OOG [CJD]-financed portion of any salary.
(b) The OOG [CJD] shall not pay
any portion of the salary of, or any other compensation for, an elected
or appointed government official.
(c) Compensation for grant-funded employees must be comparable to that of non-grant-funded employees performing similar work duties.
(d) Grantees may use grant funds to compensate staff
members leaving employment for accrued leave (which includes, but
is not limited to, annual leave, compensatory time, and sick leave)
in accordance with the grantee's policy. These payments may only fund
leave earned during the current grant period. The proportion of grant
funds used to pay [paid] for leave cannot exceed
the proportion of grant funds used to pay the staff member's salary.
§3.79.Travel and Training.
(a) Grant funds used for travel expenses must be used
only in accordance with [limited to] the grantee's [grantee agency's] established travel policies [mileage,
per diem, and lodging policies]. If a grantee does not have
established travel [mileage, per diem, and lodging]
policies, then the grantee must use rates that are consistent
with the state travel guidelines.
(b) Grantees must maintain records that properly document the completion of all grant-funded training courses.
§3.81.Equipment.
[(a)] Applicants must include a detailed
description of all proposed equipment purchases in their grant applications
[application to CJD] for approval. Grantees must
request any additional equipment purchases through grant adjustments.
[(b) CJD will not approve grant funds
to purchase vehicles or equipment for governmental agencies that are
for general agency use. The Edward Byrne Justice Assistance Grant
Program and the County Essential Services Grant Program are exempt
from this subsection.]
§3.85.Indirect Costs.
(a) If the applicant has an approved federally-recognized
indirect cost rate negotiated between the applicant and the federal [Federal] government and seeks [wishes]
to charge indirect costs to the grant, the applicant shall identify
the indirect cost rate and provide supporting documentation as part
of the application [to CJD].
(b) If the applicant has a state- [an]
approved indirect cost rate negotiated between the applicant and the
applicable [its] state [cognizant] agency
and seeks [wishes] to charge indirect costs
to the grant, the applicant shall identify the indirect cost rate
and provide supporting documentation as part of the application [to CJD].
(c) If the applicant has never received a federally-recognized
[no approved federal] or state-approved indirect
cost rate, [exists, CJD may approve] indirect
costs may be approved in the grant project in an amount
not to exceed ten [two] percent of the approved modified total direct costs.
(d) Unless otherwise specified, indirect costs are
allowable under PSO [CJD] grants in accordance
with applicable state and federal guidelines.
§3.87.Program Income.
Earned program income must be reported to PSO [CJD
]. Program income may only be used, with prior approval from PSO
[CJD], for allowable project costs as reflected
in an approved budget. Grantees may not carry forward program income
from one grant year to the next. Grantees must refund to the
OOG [CJD] any program income remaining at the end
of the grant period.
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 February 22, 2021.
TRD-202100721
Aimee Snoddy
Executive Director, Public Safety Office
Office of the Governor
Earliest possible date of adoption: April 4, 2021
For further information, please call: (512) 463-2000
1 TAC §§3.2001, 3.2009, 3.2013, 3.2021, 3.2025
STATUTORY AUTHORITY
The amendments are proposed under Texas Government Code, §772.006(a)(10), which provides that the OOG shall adopt rules necessary to implement the requirements of Texas Government Code, §772.006.
CROSS REFERENCE TO STATUTE
Chapter 3, Subchapter D. No other statutes, articles, or codes are affected by the proposed amendments.
§3.2001.Conditions of Funding.
When PSO [CJD] determines that a grantee
has failed to submit the necessary information or has failed to comply
with any applicable statute, rule, regulation, guideline, or requirement, PSO [CJD] may place a condition of funding on the
grant which may invoke a hold on funds.
§3.2009.Cooperative Working Agreement.
(a) When a grantee intends to carry out a grant project by [through] cooperating or participating with one
or more outside organizations, the grantee must ensure that the cooperative
working agreement is signed by each participating organization. Grantees
must maintain on file a signed copy of all cooperative working agreements.
(b) Cooperative working agreements do not involve an exchange of funds.
§3.2013.Pre-Approval Requirements for Procurement.
(a) A grantee must submit a PSO [CJD]-prescribed
Procurement Questionnaire when any procurement is expected to exceed the simplified acquisition threshold [$150,000] or
upon [CJD] request. PSO [CJD] may
also request all related procurement documentation, such as requests
for proposals, invitations for bids, or independent cost estimates.
(b) Grantees may not divide purchases or contracts
to avoid the requirements of this section. For purposes of determining
compliance, PSO shall [CJD will] consider groups
of contracts with a single vendor or groups of purchases for the same
or similar items as a single procurement.
§3.2021.Resolutions.
(a) Applications from non-profit corporations, local units of governments and other political subdivisions must include a resolution that contains the following:
(1) authorization for the submission of the application
[to CJD] that clearly identifies the project for which
funding is requested;
(2) a commitment to provide for all applicable matching funds;
(3) a designation of the name or title of an authorized
official who is given the power to apply for, accept, reject, alter,
or terminate a grant[(if this designation changes during the
grant period, a new resolution must be submitted to CJD)]; and
(4) a written assurance that, in the event of loss
or misuse of grant funds, the governing body shall [will]
return all funds to the OOG [CJD].
(b) If the designation under subsection (a)(3) of this section changes during the grant period, the grantee must submit a new resolution to the OOG.
§3.2025.Civil Rights Liaison.
If applicable, an applicant [All applicants]
must certify that the applicant has[they have a]
designated a civil rights liaison during the application
process. The civil rights liaison shall [will]
serve as the grantee's civil rights point of contact [point
] and has the responsibility for ensuring that the grantee meets
all applicable civil rights requirements. The designee shall [will] act as the grantee's liaison in civil rights matters with the OOG [CJD] and with the federal Office of Justice Programs.
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 February 22, 2021.
TRD-202100722
Aimee Snoddy
Executive Director, Public Safety Office
Office of the Governor
Earliest possible date of adoption: April 4, 2021
For further information, please call: (512) 463-2000
STATUTORY AUTHORITY
The amendments are proposed under Texas Government Code, §772.006(a)(10), which provides that the OOG shall adopt rules necessary to implement the requirements of Texas Government Code, §772.006.
CROSS REFERENCE TO STATUTE
Chapter 3, Subchapter E. No other statutes, articles, or codes are affected by the proposed amendments.
§3.2501.Grant Officials.
(a) Each grant must have a project director, financial officer, and authorized official. No person shall serve in more than one capacity.
(b) Each grant official must have an e-mail address and access to the Internet.
(c) A grantee shall notify PSO [CJD]
within 20 calendar days of any change in the designated project director,
financial officer, or authorized official; any change in the mailing
address, e-mail address, fax number, or telephone number of each grant
official and any change in the grantee's physical address.
§3.2503.Obligating Funds.
A grantee may not obligate grant funds before the beginning or after the end of the grant period specified in an original grant award or a subsequent grant adjustment.
§3.2505.Retention of Records.
(a) Grantees must maintain all financial records, supporting
documents, statistical records, and all other records pertinent to
the award for at least three years following the submission of
a final expenditure report or the closure of the most recent
audit report, whichever is later [or submission of
the final financial status report if the audit report requirement
has been waived]. Grantees may retain records in an electronic
format. All records are subject to audit or monitoring during the
entire retention period.
(b) Grantees must retain records for equipment, non-expendable personal property, and real property for a period of three years from the date of the item's disposition, replacement, or transfer.
(c) If any litigation, claim, or audit is started before the expiration of the three-year records retention period, the grantee must retain the records under review until the completion of the action and resolution of all issues which arise from it or until the end of the regular three-year period, whichever is later.
§3.2507.Financial Status Reports.
(a) Each grantee must submit financial status reports
to PSO in the PSO-prescribed format no later than the designated [CJD. CJD will provide the appropriate forms and instructions for the
reports along with] deadlines for their submission.
(b) A financial status report reflecting cumulative expenditures from the start of the grant may be submitted as often as monthly but must be submitted at least quarterly. Grantees may only request an advance payment during the first month of the grant period to cover the first month's expenses.
(c) Grantees must ensure [that CJD receives]
their final financial status report is submitted no later
than the liquidation date or funds shall [will]
lapse and revert to the grantor agency. If grant funds are on hold
for any reason, these funds shall [will] lapse
on the liquidation date and the grantee cannot recover them. The
OOG shall [CJD will] not make payments to grantees
that submit their final financial status report after the liquidation date.
§3.2509.Equipment Inventory Reports.
Grantees must [CJD requires each grantee to]
maintain on file a current inventory report of all equipment purchased
with grant funds during the grant period. This report must reconcile
with the approved grant budget and the final financial status report, and must contain all required PSO data elements.
§3.2513.Grant Adjustments.
(a) The project director, financial officer, or authorized official may submit requests for grant adjustments.
(b) Adjustments consisting of increases or decreases
in the amount of a grant or the reallocation of grant funds among
or within approved budget categories are allowable only with prior PSO
[CJD] approval.
(c) Programmatic changes, such as requests to revise
the scope, target, or focus of the project, or alter project activities
require prior approval from PSO [CJD]. Requests
to extend the grant period must be submitted to and received by PSO [CJD], no later than the last day of the grant period.
§3.2515.Bonding.
Each nonprofit corporation receiving funds from the OOG [CJD] must obtain and have on file a blanket fidelity bond that
indemnifies the OOG [CJD] against the loss and
theft of the entire amount of grant funds. The cost of the bond is
an eligible expense of the grant.
§3.2517.Remedies for Noncompliance.
If a grantee fails to comply with any term or condition of
a grant or any applicable statutes, rules, regulations, or guidelines, the OOG [CJD] may:
(1) withhold all grant payments to a specific project or withhold all grant payments to all grant projects awarded to the grantee pending correction of the deficiency;
(2) disallow all or part of the cost of the activity or action that is not in compliance;
(3) withhold further grants from the program or grantee;
(4) terminate the grant in whole or in part; or
(5) exercise other legal remedies.
§3.2519.Grant Reduction or Termination.
(a) If a grantee seeks [wishes]
to terminate any approved grant, it must notify the OOG [CJD] immediately.
(b) The OOG [CJD] may reduce
or terminate any grant when circumstances require reduction or
termination, including, but not limited to when:
(1) a grantee fails to comply with any term or condition of the grant or the grantee has failed to comply with any applicable statute, rule, regulation, or guideline;
(2) the grantee and the OOG [CJD]
agree to do so;
(3) state or federal funds are no longer available
to the OOG [CJD];
(4) conditions exist that make it unlikely that grant objectives will be accomplished; or
(5) the grantee has acted in bad faith.
(c) In the event that a grant is reduced or terminated
by the OOG, the OOG shall [CJD, CJD will] notify
the grantee in writing.
§3.2523.Violations of Laws.
(a) A grantee must immediately notify the OOG [CJD] in writing of any legal violations.
(b) A grantee must immediately notify the OOG [CJD] in writing if a project or project personnel become involved
in any civil or criminal litigation and the grantee must immediately
forward a copy of any demand notices, subpoenas, lawsuits, or indictments
to the OOG [CJD].
(c) If a federal or state court or administrative agency
renders a judgment or order finding discrimination by a grantee based
on race, color, national origin, sex, age, or disability [handicap], the grantee must immediately forward a copy of the
judgment or order to the OOG [CJD].
(d) If any records are seized from a grantee by a law
enforcement agency, or a state or federal agency, the grantee must
immediately notify the OOG [CJD] in writing
of the seizure and must retain copies of the seized records.
§3.2525.Evaluating Project Effectiveness.
(a) Grantees must regularly evaluate their projects. PSO shall monitor grantees [CJD will monitor the grantee]
through progress reports, on-site visits, and desk reviews. Grantees
must maintain information related to project evaluations in the project's
files, and that information must be available for review.
(b) Grantees are responsible for managing the day-to-day operations of grant and sub-grant supported activities, including those of their contractors and subcontractors. Grantees must develop and maintain a standardized monitoring program incorporating best practices.
§3.2527.Grantee Reports.
(a) Each grantee must submit reports regarding grant information, performance, and progress. To remain eligible for funding, the grantee must be able to show the scope of services provided and the impact and quality of those services.
(b) The OOG [CJD] may place projects
on financial hold for failure to submit complete and accurate progress
reports. A grantee's history of delinquent or inaccurate reports may
affect future funding decisions.
§3.2529.Grant Management.
(a) PSO [CJD] has oversight responsibility
for the grants it awards and [. CJD] may review
the grantee's management and administration of grant funds and records
at any time. Grantees must respond to all PSO [CJD]
inquiries or requests and must make all requested records available
[to CJD].
(b) The grantee is the entity legally and financially responsible for the grant. A grantee may not delegate its legal or financial responsibility.
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 February 22, 2021.
TRD-202100723
Aimee Snoddy
Executive Director, Public Safety Office
Office of the Governor
Earliest possible date of adoption: April 4, 2021
For further information, please call: (512) 463-2000
STATUTORY AUTHORITY
The amendments are proposed under Texas Government Code, §772.006(a)(10), which provides that the OOG shall adopt rules necessary to implement the requirements of Texas Government Code, §772.006.
CROSS REFERENCE TO STATUTE
Chapter 3, Subchapter F. No other statutes, articles, or codes are affected by the proposed amendments.
§3.2601.Monitoring.
(a) PSO [CJD] and OCM shall [COD will] monitor the activities of grantees as necessary to
ensure that grant funds are used for authorized purposes and that
grantees achieve grant purposes.
(b) The monitoring program may consist of formal audits,
monitoring reviews, and technical assistance. PSO or OCM [CJD or COD] may implement monitoring through on-site review
at the grantee or sub-grantee location or through a desk review. PSO
or OCM [CJD or COD] may request that grantees
[to] submit information to PSO or OCM [CJD
or COD] to support any monitoring review.
(c) Grantees must make [available to CJD or COD]
all records relevant to a monitoring review available.
Failure to provide adequate documentation may result in disallowed
costs or other remedies for noncompliance.
(d) After a monitoring review, the grantee shall [will] be notified in writing through a preliminary report of
any identified noncompliance [identified by CJD or
COD in the form of a preliminary report]. The preliminary
report shall enumerate deficiencies and provide recommendations to
cure the deficiencies.
(e) The grantee shall respond to the preliminary report
and the deficiencies or recommendations, and submit to PSO or
OCM a corrective action plan or, if the grantee believes
correction action is not required in response to a deficiency or recommendation,
an explanation under subsection (g) of this section [to
CJD or COD] within a time specified by PSO or OCM [CJD or COD].
(f) The corrective action plan shall include:
(1) the titles of the persons responsible for implementing the corrective action plan;
(2) the corrective action to be taken; and
(3) the anticipated completion date.
(g) If the grantee believes corrective action is not
required in response to [for] a deficiency or
recommendation, the response shall include an explanation and specific
reasons. PSO or OCM shall [CJD or COD will]
determine whether the response is adequate to resolve the deficiency
or recommendation.
(h) The grantee's response and the approved corrective action plan shall become part of the final report.
(i) The grantee shall resolve all identified findings
within the time specified [by CJD or COD].
(j) PSO shall issue a final report:
(1) when PSO or OCM observes no deficiencies during the monitoring review; or
(2) after receiving the response by a grantee to the preliminary report.
§3.2603.Audits Not Performed by PSO or OCM [CJD or COD].
(a) Grantees must have audits performed in accordance
with the requirements set forth in 2 CFR Part 200, Subpart F[-] concerning Audit Requirements, and the State Single Audit requirementsissued under
UGMS.
(b) Grantees that meet the Single Audit requirements
as set forth in either 2 CFR Part 200, Subpart F concerning Audit
Requirements, or the State Single Audit requirements issued under
UGMS, must submit to OCM a Single Audit reporting package [COD copies of the results of any single audit conducted in accordance
with 2 CFR Part 200, Subpart F-Audit Requirements or in accordance
with the State Single Audit requirements issued under UGMS. Grantees
must ensure that single audit results, including the grantee's response
and corrective action plan, if applicable, are submitted to COD]
within 30 calendar days of receiving the Single Audit report
from the independent auditor [after the grantee receives
the audit results] or nine months after the end of the audit
period, whichever is earlier.
(c) Grantees who are not required to have a Single Audit for any fiscal year in which the OOG award was made or expended, must submit a Certification of Single Audit Reporting Requirement Exemption form to OCM within 60 calendar days of the end of the grantee's fiscal year.
(d) [(c)] All other audits performed
by auditors independent of PSO or OCM [CJD or COD]
must be maintained at the grantee's administrative offices and made
available upon request [by CJD or COD]. Grantees must notify PSO [CJD] of any audit results that may adversely impact grant funds.
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 February 22, 2021.
TRD-202100724
Aimee Snoddy
Executive Director, Public Safety Office
Office of the Governor
Earliest possible date of adoption: April 4, 2021
For further information, please call: (512) 463-2000
DIVISION 1. TEXAS CRIME STOPPERS COUNCIL
STATUTORY AUTHORITY
The amendments are proposed under Texas Government Code, §772.006(a)(10), which provides that the OOG shall adopt rules necessary to implement the requirements of Texas Government Code, §772.006.
CROSS REFERENCE TO STATUTE
Chapter 3, Subchapter G. No other statutes, articles, or codes are affected by the proposed amendments.
§3.8105.General Powers.
(a) Pursuant to Chapter 414 of the Texas Government Code, the Council is authorized to:
(1) certify a crime stoppers organization to receive
repayments of rewards under Articles 37.073 and 42.152 of the Texas
Code of Criminal Procedure, or payments from a defendant under Article 42A [42.12] of the Texas Code of Criminal Procedure;
(2) decertify an organization, thereby rendering the organization ineligible to receive such repayments or payments; and
(3) adopt rules to carry out its function; however, the Council may not adopt rules that conflict with rules relating to grants adopted by PSO or CJD.
(b) In addition, the Council acts in an advisory capacity
to the executive director of PSO [CJD], who shall
[will] relate their recommendations and those of PSO
[CJD] to the governor as needed.
§3.8115.Meetings.
(a) At all meetings, the latest version of Robert's Rules of Order shall govern proceedings.
(b) Meetings shall [will] be
held at least annually and at other times deemed necessary by the
chairman or the executive director of PSO [CJD].
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 February 22, 2021.
TRD-202100725
Aimee Snoddy
Executive Director, Public Safety Office
Office of the Governor
Earliest possible date of adoption: April 4, 2021
For further information, please call: (512) 463-2000
STATUTORY AUTHORITY
The amendments are proposed under Texas Government Code, §772.006(a)(10), which provides that the OOG shall adopt rules necessary to implement the requirements of Texas Government Code, §772.006.
CROSS REFERENCE TO STATUTE
Chapter 3, Subchapter G. No other statutes, articles, or codes are affected by the proposed amendments.
§3.8305.General Powers.
Pursuant to §772.0061 of the Texas Government Code, the Council is authorized to:
(1) evaluate applications for grant funding for specialty courts in this state and to make funding recommendations to PSO or CJD; and
(2) make recommendations to PSO or CJD regarding best practices for specialty courts established under Chapters 122, 123, 124, or 125 of the Texas Government Code, or former law.
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 February 22, 2021.
TRD-202100727
Aimee Snoddy
Executive Director, Public Safety Office
Office of the Governor
Earliest possible date of adoption: April 4, 2021
For further information, please call: (512) 463-2000
SUBCHAPTER G. CRIMINAL JUSTICE DIVISION BOARDS
DIVISION 2. GOVERNOR'S JUVENILE JUSTICE ADVISORY BOARD
1 TAC §§3.8200, 3.8205, 3.8210, 3.8215, 8.8220
The Office of the Governor ("OOG") proposes the repeal of 1 TAC §§3.8200, concerning Establishment, 3.8205, concerning General Powers, 3.810, concerning Composition, 3.8215, concerning Meetings, 3.8220, concerning Compensation. The OOG identified the necessity of the proposed repeals during the Governor's Office's periodic review of 1 TAC Chapter 3, conducted pursuant to Texas Government Code §2001.039. The proposed repeals will dissolve the Governor's Juvenile Justice Advisory Board.
EXPLANATION OF PROPOSED REPEALS
The purpose for the proposed repeal of 1 TAC §§3.8200, 3.8205, 3.8210, 3.8215, 3.8220 is to remove the Governor's Juvenile Justice Advisory Board. The Board is a federal requirement for the administration of grant funds under the Juvenile Justice and Delinquency Prevention Act, but the OOG no longer administers these funds, so the Board is no longer necessary.
FISCAL NOTE
Aimee Snoddy, Executive Director, Public Safety Office, has determined that during each year of the first five years in which the proposed repeals are in effect, there will be no expected fiscal impact on state and local governments as a result of enforcing or administering the proposed repeals.
Ms. Snoddy does not anticipate any measureable effect on local employment or the local economy as a result of the proposed repeals.
PUBLIC BENEFIT AND COSTS
Ms. Snoddy has also determined that during each year of the first five years in which the proposed repeals are in effect, the public benefit anticipated as a result of the repeals is the ability of local juvenile justice programs to obtain direct federal funding.
Ms. Snoddy has determined there are no measurable anticipated economic costs to persons required to comply with the proposed repeals.
There will be no adverse economic effect on small businesses, micro-businesses, or rural communities. Since the OOG has determined that the proposed repeals will have no adverse economic effect on small businesses, micro-businesses, or rural communities, preparation of an Economic Impact Statement and a Regulatory Flexibility Analysis, as detailed under Texas Government Code §2006.002, are not required.
GOVERNMENT GROWTH IMPACT STATEMENT
Ms. Snoddy has determined that during each year of the first five years in which the proposed repeals are in effect, the repeals do not eliminate a government program; will not require the creation of new employee positions or the elimination of existing employee positions; will not require an increase or decrease in future legislative appropriations to the OOG; will not require an increase or decrease in fees paid to the OOG; do not create a new regulation; and will not positively or adversely affect the Texas economy. The proposal will repeal existing regulations and will decrease the number of individuals subject to the applicability of the rules.
TAKINGS IMPACT ASSESSMENT
The OOG has determined that no private real property interests are affected by the proposed repeals and the proposed repeals do not restrict, limit, or impose a burden on an owner's rights to the owner's private real property that would otherwise exist in the absence of government action. As a result, the proposed repeals do not constitute a taking or require a takings impact assessment under Government Code §2007.043.
SUBMISSION OF COMMENTS
Written comments regarding the proposed rule repeals may be submitted to Stephanie Greger, Assistant General Counsel, Office of the Governor, P.O. Box 12428, Austin, Texas 78711 or by email to stephanie.greger@gov.texas.gov with the subject line "Criminal Justice Division Rule Review." The deadline for receipt of comments is 5:00 p.m., Central Time, on April 4, 2021.
STATUTORY AUTHORITY
The repeals are proposed under Texas Government Code, §772.006(a)(10), which provides that the OOG shall adopt rules necessary to implement the requirements of Texas Government Code, §772.006.
CROSS REFERENCE TO STATUTE
Chapter 3, Subchapter G. No other statutes, articles, or codes are affected by the proposed repeals.
§3.8200.Establishment.
§3.8205.General Powers.
§3.8210.Composition.
§3.8215.Meetings.
§3.8220.Compensation.
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 February 22, 2021.
TRD-202100704
Aimee Snoddy
Executive Director, Public Safety Office
Office of the Governor
Earliest possible date of adoption: April 4, 2021
For further information, please call: (512) 463-2000
SUBCHAPTER B. ADMINISTRATIVE POLICIES
The Office of the Governor ("OOG"), proposes amendments to 1 TAC §5.101, concerning the Identification and Escalation of Procurement Contracts that Require Enhanced Contract or Performance Monitoring. The OOG identified the necessity of the proposed amendments during the OOG's periodic review of 1 TAC Chapter 5, Subchapter B, conducted pursuant to Texas Government Code §2001.039. The proposed amendments will provide additional clarity to the OOG's processes to identify and escalate procurement contracts that required enhanced monitoring.
EXPLANATION OF PROPOSED AMENDMENTS
The purpose of the rule at issue is to implement state contracting requirements established by §2261.253(c), Texas Government Code. The law requires a state agency, by rule, to establish a procedure to identify contracts that require enhanced contract or performance monitoring, and submit information on these contracts to the agency's governing official. Additionally, the agency's contract management office or procurement director is required to immediately notify the agency's governing official of any serious issue or risk that is identified with respect to a contract monitored under §2261.253(c).
The proposed amendments to §5.101(a) remove the current text of subsection (a) because it is redundant of the text of subsection (b).
The proposed amendments to §5.101(b) provide additional clarity to the provision and more specifically denote the types of contracts for which a risk assessment is required and the types of contracts for which a risk assessment is discretionary.
The proposed amendments to §5.101(c) replace "agency" with "OOG."
The proposed amendments to §5.101(d) clarify the OOG division tasked with providing information to the OOG's Chief of Staff about contracts for which it is determined the OOG must exercise enhanced monitoring.
The remaining proposed amendments redesignate subsections in conformity with the removal of subsection (a).
FISCAL NOTE
Suzanne Johnson, Director of Administration, Office of the Governor, has determined that during each year of the first five years in which the proposed amendments are in effect, there will be no expected fiscal impact on state and local governments as a result of enforcing or administering the proposed amendments.
Ms. Johnson does not anticipate any measureable effect on local employment or the local economy as a result of the proposed amendments.
PUBLIC BENEFIT AND COSTS
Ms. Johnson has also determined that during each year of the first five years in which the proposed amendments are in effect, the public will benefit from greater clarity of the instances and circumstances in which contract risk assessment will be undertaken by the OOG.
Ms. Johnson has determined there are no measurable anticipated economic costs to persons required to comply with the proposed amendments.
There will be no adverse economic effect on small businesses, micro-businesses, or rural communities. Since the OOG has determined that the proposed rule will have no adverse economic effect on small businesses, micro-businesses, or rural communities, preparation of an Economic Impact Statement and a Regulatory Flexibility Analysis, as detailed under Texas Government Code §2006.002, is not required.
GOVERNMENT GROWTH IMPACT STATEMENT
Ms. Johnson has determined that during each year of the first five years in which the proposed amendments are in effect, the amendments:
1) will not create or eliminate a government program;
2) will not require the creation of new employee positions or the elimination of existing employee positions;
3) will not require an increase or decrease in future legislative appropriations to the OOG;
4) will not require an increase or decrease in fees paid to the OOG;
5) do not create a new regulation;
6) do not expand, limit, or repeal an existing regulation;
7) will not increase or decrease the number of individuals subject to the applicability of the rule; and
8) will not positively or adversely affect the Texas economy.
TAKINGS IMPACT ASSESSMENT
The OOG has determined that no private real property interests are affected by the proposed rules and the proposed rules do not restrict, limit, or impose a burden on an owner's rights to the owner's private real property that would otherwise exist in the absence of government action. As a result, the proposed amendments do not constitute a taking or require a takings impact assessment under Government Code §2007.043.
SUBMISSION OF COMMENTS
Written comments regarding the proposed rule amendments may be submitted to Joseph Behnke, Office of the Governor, P.O. Box 12428, Austin, Texas 78711 or by email to joseph.behnke@gov.texas.gov with the subject line "Procurement Contract Enhanced Monitoring Rule Review." The deadline for receipt of comments is 5:00 p.m., Central Time, on April 4, 2021.
STATUTORY AUTHORITY
The amendments are proposed under Texas Government Code, §2261.253(c), which requires the OOG to establish by rule a procedure to identify each procurement contract that requires enhanced contract or performance monitoring.
No other statutes, articles, or codes are affected by the proposed amendments.
§5.101Identification and Escalation of Procurement Contracts that Require Enhanced Contract or Performance Monitoring
(a) [The OOG will complete a risk assessment to
identify procurement contracts for goods or services from a private
vendor that require enhanced contract or performance monitoring.]
[(b)] The Office of the Governor (OOG) shall [will] complete a risk assessment for
contracts with a private vendor for goods or services with a value
greater than $100,000 to evaluate whether the OOG must
exercise enhanced contract or performance monitoring on
such contracts [may be required for contracts with a value
greater than $100,000]. For contracts with a private vendor
for goods or services with a value of $100,000 or less [of
a lesser value], the OOG may complete a risk assessment to evaluate
whether enhanced contract or performance monitoring is necessary
for such contracts [indicated].
(b) [(c)] The risk assessment
may consider the following factors:
(1) total cost of the contract, including contract renewals;
(2) risk of loss to the OOG [agency]
under the contract;
(3) risk of fraud, waste or abuse;
(4) scope of the goods or services provided;
(5) availability of OOG [agency] resources;
(6) complexity of the contract;
(7) business process impact of failure or delay;
(8) vendor past performance; and
(9) whether the vendor is a foreign or domestic person or entity.
(c) [(d)] The director of
the OOG's Financial Services Division shall provide information on
contracts for which it is determined the OOG must exercise enhanced
contract or performance monitoring [Information on these
contracts will be reported] to the OOG's Chief of
Staff at least quarterly. The Chief of Staff shall [will]
be notified immediately of any serious issue or risk that is identified
with respect to [such a] contracts identified requiring
enhanced contract or performance monitoring [contract].
(d) [(e)] This section does not
apply to a memorandum of understanding, interagency contract, interlocal
agreement, or contract for which there is not a cost.
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 February 22, 2021.
TRD-202100705
Suzanne Johnson
Director of Administration
Office of the Governor
Earliest possible date of adoption: April 4, 2021
For further information, please call: (512) 463-2000