1. (a) The Office of the Governor will recognize one COG organized under Chapter 391, Local Government Code, in each state planning region or sub-region. Only the COG recognized by the Office of the Governor will be eligible for a state planning assistance grant.
2. (b) All applications from COGs for financial assistance programs covered by the Texas Review and Comment System shall be submitted to the Office of the Governor's State Grants Team for review and comment prior to the submission to any federal, state, or other agency.
3. (c) Funding under the state planning assistance grant program will be based on member counties and incorporated municipalities as of September 1 for the fiscal year in which funds are being sought. The population of member cities in nonmember counties will be included in computing the amount of state grant eligibility. The population of member cities in nonmember counties shall be determined using the most recent population estimates produced by the Texas State Data Center.
4. (d) State aid can be expended for any legal activity of a COG as defined in §391.005, Local Government Code. State funds may be utilized as local matching funds for any other state or federal program approved by the governing body of the COG. In no case may state aid be used to pay entertainment expenses or other prohibited costs.
5. (e) COGs may apply for state planning assistance grant funds in accordance with application schedules developed by CJD.
6. (f) A COG applying for state planning assistance grant funds must have funds available annually from sources other than the state or federal governments equal to or greater than one-half of the state planning assistance grant funds for which the COG applies. The applicant may count local cash funds which will be collected during the applicant's entire fiscal year toward meeting the requirement of this subsection. Local funds carried forward from a previous fiscal year, above the amount that was equal to one-half of the state planning assistance grant funds for which the commission applied, may be counted in subsequent fiscal years as funds available from sources other than the state or federal government.
7. (g) The nepotism provisions of Chapter 573, Government Code, apply to a COG.
8. (h) An employee of a COG is subject to the rules regarding lobbying activities contained in Chapter 556, Government Code, when using state-appropriated funds.
9. (i) A COG must comply with all applicable federal, state, and local statutes, rules, regulations and guidelines.

Source Note:The provisions of this §3.9405 adopted to be effective October 19, 2008, 33 TexReg 8499; amended to be effective June 21, 2009, 34 TexReg 3925.