1. (a) The personnel budget category may include salaries of employees only, and not compensation paid to independent contractors. "Employee" is defined as a person under the direction and supervision of the grantee, who is on the payroll of the grantee and for whom the grantee is required to pay applicable income withholding taxes; or a person who will be on the grantee's payroll and for whom the grantee will pay applicable income withholding taxes once the grant is awarded.
2. (b) Salaries for grant-funded positions must be reasonable and comply with the grantee's salary classification schedule. If a grantee does not have a classification schedule, the grantee must maintain documentation supporting that the salary is commensurate with that paid in the geographic area for positions with similar duties and qualifications. In any event, the OAG will determine whether a salary is reasonable and may limit the grant-funded portion of any salary.
3. (c) The OAG may set minimum restrictions on the percentage of salary that may be funded.
4. (d) A grantee may not use grant funds to pay overtime.
5. (e) Any changes to the job duties or employment status of a grant funded position must be reported to the OAG immediately.
6. (f) A grantee may not use grant funds to pay any portion of the salary or any other compensation for an elected government official.

Source Note:The provisions of this §62.301 adopted to be effective April 15, 2007, 32 TexReg 1997.