1. (a) General Fiscal Provisions. SWCD sponsors entering into a contract with the State Board for structural repair activities must comply with all applicable provisions within the Manual of Fiscal Operations for Soil and Water Conservation Districts unless the contract scope of work specifies otherwise. The Manual of Fiscal Operations for Soil and Water Conservation Districts is approved and periodically amended by the State Board and is available on the State Board's website; hardcopies of this manual may be requested from the State Board.
2. (b) Sources of funding. The amount of funding made available for structural repair grants during a fiscal year will be determined by the State Board out of general revenue appropriated by the Texas Legislature. Other sources of funding may be used for structural repair grants by the State Board if applicable and when available. Funds will be obligated by contract between the State Board and sponsors for the period of time specified within a contract.
3. (c) Reimbursement only. Payment will be made on a reimbursement basis only.
4. (d) Activities eligible for reimbursement. Funds may be used to reimburse costs associated with the performance of structural repair activities as defined by this subchapter on flood control dams, as well as costs associated with the purchasing of easements, engineering design, performance inspections, and any other structural repair activities approved by the State Board at their discretion. Legal fees associated with purchasing easements and land rights determinations may be eligible for reimbursement if specified in a contract scope of work executed between the State Board and sponsors.
5. (e) Non-state funded matching requirement. Contracts for structural repair projects between the State Board and a sponsor will require that 5-percent of the total contract cost be provided by funds not originating from state appropriations. The State Board may enter into a contract with sponsors that provides 100-percent of the total project cost if the flood control dam on which the activities are to be performed is a part of a watershed project where the original watershed agreement did not include at least one sponsor empowered by the State of Texas to levy taxes.
6. (f) In-kind match contributions. All or a portion of the non-state funded matching requirement may be satisfied through "in-kind" contributions. In-kind contributions must be documented in contracts between the State Board and sponsors at rates approved by the State Board prior to obligation of funds.
7. (g) Administrative costs of sponsors. Contracts between the State Board and sponsors may include an amount for administration not to exceed 5-percent of the total contract amount.
8. (h) Utilizing structural repair grant funds for O&M. Contracts between the State Board and sponsors may include funds for performing O&M activities as defined by §529.2(9) of this chapter if those activities are included in the contract scope of work.

Source Note:The provisions of this §529.52 adopted to be effective April 25, 2010, 35 TexReg 3069.