(a) The Commission is authorized to participate in
the establishment and operation of an affiliated non-profit organization
whose purpose is to raise funds for or provide services or other benefits
to the Commission by Texas Government Code §449.053.
(b) The Commission, by vote of the Commission in a
duly posted meeting, may authorize the establishment of a contractual
relationship with a non-profit organization for any purpose authorized
by law and in compliance with this section.
(c) The contract or other agreement with the affiliated
non-profit organization shall set out fully the relationship between
the Commission and the affiliated non-profit organization, and shall
meet the following requirements:
  (1) Administration and investment of funds received
by the organization for the benefit of the Commission.
    (A) All records of the affiliated non-profit organization
shall be available for inspection or audit by the Commission or its
designee.
    (B) A representative of the affiliated non-profit organization
shall regularly report to the Commission on the operations of the
affiliated non-profit organization.
    (C) Funds or other assets of the affiliated non-profit
organization shall be administered and invested in a manner to be
provided in the contract or other agreement. At a minimum, funds received
by the affiliated non-profit organization shall be handled as follows:
      (i) Funds shall be placed in an account at a financial
institution within ten business days of receipt.
      (ii) Funds shall be placed in an interest-bearing or
other investment account in accordance with the investment policy
of the affiliated non-profit organization.
      (iii) Funds shall be used only to support approved
projects of the Commission or to pay administrative expenses of an
affiliated non-profit organization.
      (iv) Employees of the Commission shall not be signatories
on accounts of an affiliated non-profit organization.
  (2) Use of an employee or property of the agency by
the affiliated non-profit organization.
    (A) Staff of the Commission may assist in the operation
of the affiliated non-profit organization during regular work hours
only with the written approval of the Texas Historical Commission's
executive director.
    (B) Staff involved in regulatory functions of the Commission
shall not participate in the management of the affiliated non-profit
organization except on a case-by-case basis with the written approval
of the executive director. All staff involved in the development of
grant proposals may provide subject-matter expertise for the grant
proposals, including, with the written approval of the executive director,
participating in the presentation of grant proposals to potential
donors.
    (C) Property of the Commission may be used in support
of an affiliated non-profit organization so long as the use serves
a public purpose and is within the limitations of this section and
any contract or agreement between the Commission and the affiliated
non-profit organization. Any state property entrusted to the affiliated
non-profit organization must remain on the inventory of the Commission
and be properly accounted for in accordance with state agency requirements.

    (D) The Commission may provide office space, pay utilities,
and pay other expenses of an affiliated non-profit organization as
long as any such expense serves a public purpose and is within the
limitations of this section and any contract or agreement between
the Commission and the affiliated non-profit organization.
(d) Prohibitions in relationship with affiliated non-profit
organization.
  (1) An employee of the Commission may not serve as
an employee, elected officer or director of an affiliated non-profit
organization. An employee of the Commission may serve as an ex-officio,
non-voting member of an affiliated non-profit organization.
  (2) A Commissioner or employee of the Commission shall
not receive monetary enrichment from the affiliated non-profit organization
except with the approval of the executive director, or, in the case
of the executive director or a Commissioner, with the approval of
the Commission.
(e) The Commission may recommend or nominate individuals
to serve as officers, directors, or employees of an affiliated non-profit
organization.
(f) The Commission shall have a formal liaison committee
or other, similar group to monitor the operation of an affiliated
non-profit organization.
(g) An affiliated non-profit organization will not
knowingly accept donations from organizations or individuals administering
grants from the Commission or which have contracts with the Commission.
Should such a donation be accepted, it shall be returned upon discovery
of such a relationship.
(h) An affiliated non-profit organization may not expend
funds for the purpose of influencing legislative action, either directly
or indirectly.
(i) The Commission shall review its relationship with
an affiliated non-profit organization on a schedule to be established
by the Commission, but not less than once every 10 years.


Source Note: The provisions of this §191.6 adopted to be effective August 13, 2012, 37 TexReg 6005