All ANOs must meet the requirements and criteria of this section.

1. (1) All ANOs must carry out the fiscal, business, legal, and tax responsibilities of a nonprofit entity as required by state and federal law.
2. (2) ANOs must have obtained from the Internal Revenue Service a valid determination letter that it is an organization described in §501(c) of the Internal Revenue Code of 1986 (Title 26, United States Code), as amended.
3. (3) An ANO's work with the commission must be consistent with the commission's mission and goals.
4. (4) Upon dissolution, an ANO may be required to dispose of funds raised for the benefit of the commission in a way that will benefit the commission, in accordance with applicable law.
5. (5) An ANO must be incorporated in accordance with the Texas Nonprofit Corporation Act (Chapter 22, Texas Business Organizations Code).
6. (6) Each ANO must enter into an agreement with the commission detailing the responsibilities and duties of the ANO and the commission. Each ANO must maintain such an agreement with the commission for as long as the entity is an ANO. The agreement may also address the obligations of an ANO upon termination of the relationship between the ANO and the commission, including termination resulting from the dissolution of the ANO.
7. (7) An ANO must promptly notify the commission of any change in its legal or tax-exempt status.

Source Note:The provisions of this §11.62 adopted to be effective December 4, 2025, 50 TexReg 7697.