1. (a) All NPs must meet the requirements and criteria of this subsection.

   1. (1) In order to be considered a NP of the department, the nonprofit organization must be designated by the commission voting in a public meeting. The commission will designate an ONP, as necessary.
   2. (2) In order to maintain a current list of all nonprofit entities associated with the department, the commission will seek to designate as a GNP all non-profit partners, other than CRNPs and the ONP, that have an agreement of any kind with the department, have a representative serving on a department or commission advisory committee, or otherwise have a relationship with the department.
   3. (3) The commission may remove a nonprofit partner from the NP list.
   4. (4) All NPs must carry out the fiscal, business, legal, and tax responsibilities of a nonprofit entity as required by state and federal law.
   5. (5) All NPs 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. Such a letter must be obtained no later than 180 days after being designated by the commission as a NP.
   6. (6) All NPs' work with the department must be consistent with the department's mission and goals.
   7. (7) Upon dissolution, a NP may be required to dispose of funds raised for the benefit of the department in a way that will benefit the department, in accordance with applicable law.

2. (b) In addition to the requirements and criteria stated in subsection (a) of this section, CRNPs and the ONP must comply with the requirements and criteria of this subsection.

   1. (1) CRNPs and the ONP must be incorporated in accordance with the Texas Nonprofit Corporation Act (Business Organizations Code, Chapter 22).
   2. (2) Within 60 days of its designation as a nonprofit partner, each CRNP and the ONP must enter into an agreement with the department detailing the responsibilities and duties of the nonprofit partner and the department. Each CRNP and the ONP must maintain such an agreement with the department for as long as the entity is designated as a CRNP or the ONP. The agreement may also address the obligations of a CRNP or the ONP upon termination of the relationship with between the CRNP or ONP and the department, including termination resulting from the dissolution of the CRNP or the ONP.
   3. (3) CRNPs and the ONP must promptly notify the department of any change in its legal or tax-exempt status.

Source Note:The provisions of this §51.162 adopted to be effective May 17, 2007, 32 TexReg 2655.