1. (a) As authorized by Texas Health and Safety Code Section 102.054, the Institute may accept gifts from any source to support the operations of the Institute and to further its purposes. All funds received from donations to the Institute will be deposited to the state treasury and used for the purpose specified by the donor or for general Institute programs when no purpose is specified.
2. (b) A member or an employee of the Institute shall not authorize a donor to use the property of the Institute unless the property is used in accordance with a contract between the Institute and the donor, the contract is found by the Institute to serve a public purpose, the contract contains provisions to ensure the public purpose continues, and the Institute is reasonably compensated for the use of the property.

3. (c) Procedure for acceptance of gifts.

   1. (1) Gifts to Institute may be designated for one of the following categories:

      1. (A) Unrestricted General Support;
      2. (B) Restricted Programmatic Support;
      3. (C) Endowed and Restricted Funds; or
      4. (D) Other (includes gifts of real or personal property).
   2. (2) Gifts of ten thousand dollars or less may be accepted on behalf of the Institute by the Executive Director.
   3. (3) The Executive Committee of the Oversight Committee may accept gifts of cash, stock, bonds, or personal property with a value in excess of ten thousand dollars but less than one million dollars on behalf of Institute. If one or more Executive Committee members do not agree with the decision to accept the gift on behalf of Institute, the decision to accept the gift will be made by a majority vote of the Oversight Committee.

   4. (4) Acceptance of gifts made to Institute of cash, stock, bonds, or personal property with a value in excess of one million dollars, gifts of real property regardless of value, and all other gifts not herein described shall be approved by a majority vote of the Oversight Committee. To assist in its decision, a report shall be created by the Executive Director that includes the following information:

      1. (A) Name and biographical data regarding the individual or organization making the gift.
      2. (B) A description of the gift.
      3. (C) A list of conditions or requirements to be imposed on the Institute as a result of accepting the gift.
      4. (D) If one of the conditions is naming, then include a description of the object to be named and whether there is a time limit on continuing the name.
      5. (E) If the gift is real property, an evaluation of the gift by the General Land Office.
      6. (F) If the gift is stock or other investments, a description of how they will be sold and the expected net proceeds.
      7. (G) A description of how the gift will be used.
   5. (5) All funds received from donations to the Institute will be deposited to the state treasury and used for the purpose specified by the donor or for general Institute programs when no purpose is specified.

4. (d) The Institute encourages the offer of gifts of additional revenue and real and personal property through naming.

   1. (1) Naming can be given to both real objects and inanimate objects, such as grant programs.

   2. (2) The Oversight Committee will consider a request for naming in connection with a gift of real or personal property of substantial value to Institute and its programs. In determining whether a gift has substantial value, the Oversight Committee will evaluate the following factors:

      1. (A) The size of the real or personal property in relation to other fund sources--including bonds--available at the same time and consideration of whether the donation will make a material contribution to the Institute's goals and programs that otherwise would not be made.
      2. (B) Availability of the real or personal property.
      3. (C) Flexibility (will the Institute have discretion in the use of the real or personal property or will it be limited to certain uses).
   3. (3) The Oversight Committee must approve the recommendation to name an object or program by majority vote of its members.

5. (e) The Oversight Committee may refuse a gift to the Institute for any reason, including:

   1. (1) The gift requires an initial and/or on-going expenditure that will likely equal or exceed the value of the gift.
   2. (2) The gift is from an institution, entity, organization or individual that has applied for funding from the Institute, currently receives funding from the Institute, or has received funding from the Institute at any time in the past two years. This limitation applies to donations in excess of $1,000 by a director, officer, or executive of an institution, entity, organization, or individual.
   3. (3) The Institute shall return a gift made by an institution, entity, organization, or individual that was otherwise eligible to make the donation at the time that the gift was accepted by the Institute in the event that the contributor subsequently submits an application for funding from the Institute within the fiscal year of the donation.

   4. (4) For purposes of this section, the limitation on gifts does not apply to the following institution, entity, organization, or individual:

      1. (A) A not-for-profit 503(c)(3) corporation that is a separate legal entity from the associated institution, entity, organization, or individual.
      2. (B) A donation that would be otherwise unacceptable pursuant to paragraph (2) of this subsection that is made as the result of the final bequeathal.
6. (f) At each meeting of the Oversight Committee, a list of all gifts that have been accepted by the Executive Director and by the Executive Committee since the last meeting will be presented as an information item on the public agenda. The list will include the identity of the contributor, unless the contributor has requested anonymity, the type of gift (unrestricted general support, restricted programmatic support, endowed/restricted funds, or other), and the amount of the gift. The Institute shall maintain a list of gifts received, including the identity of contributor, unless the contributor has requested anonymity, the type of gift, and the amount of the gift.

Source Note:The provisions of this §702.7 adopted to be effective July 13, 2009, 34 TexReg 4640; amended to be effective February 11, 2010, 35 TexReg 872.