1. (a) Purpose. The purpose of this rule is to establish procedures for the deposit of funds into the student benefit fund. The student benefit fund is only to be used for the education, recreation or entertainment of the youth in residential placements or contract care programs.

2. (b) Funds from the following sources are designated as benefit funds:

   1. (1) all proceeds from canteens or vending machines at TYC facilities in excess of the amount required to pay the expense of operating those canteens or vending machines;
   2. (2) donations for youth activities;
   3. (3) proceeds from youth fund raising projects; and
   4. (4) contraband money deposited as a consequence of a Level II due process hearing.
3. (c) Funds which cannot be accepted in compliance with state law and this rule must be returned to the donor.
4. (d) For acceptance of gifts that have a value of $500 or more, see §81.70 of this title (relating to Agency Acceptance of Gifts of $500).

5. (e) Proceeds may be used only to:

   1. (1) Provide education, recreation, or entertainment to youth committed to TYC.
   2. (2) Reimburse youth, under certain circumstances, for personal property lost or damaged as a result of negligence by staff. See §91.7 of this title (relating to Youth Personal Property).
6. (f) Expenditures of funds must be justified to show no preferential treatment of certain individuals or groups of youth. However, expenditures do not have to benefit every youth each time. Funds donated for a specific purpose may be used to reward individual youth for their work or public service activities performed off campus.
7. (g) Donations must be used for the purpose designated by the donor unless state law prohibits such expenditure.
8. (h) These funds are maintained in the Comptroller of Public Accounts - Treasury Operations (Fund Consolidation Appropriation Act) and all expenditures must conform to state purchasing rules and regulations.
9. (i) All expenditures must conform to state purchasing rules and regulations and other laws and regulations regarding general revenue fund expenditures except as necessary to reimburse youth under subsection (c) of this section.

Source Note:The provisions of this §385.9971 adopted to be effective November 8, 2005, 30 TexReg 7233; transferred effective June 4, 2012, as published in the Texas Register June 22, 2012, 37 TexReg 4639.