Section 51.162 - Criteria and General RequirementsAll NPs must meet the requirements and criteria of this section.
(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) The commission may remove a nonprofit partner from the NP list.(3) All NPs must carry out the fiscal, business, legal, and tax responsibilities of a nonprofit entity as required by state and federal law.(4) 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.(5) A NPs' work with the department must be consistent with the department's mission and goals.(6) 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.(7) NPTs must be incorporated in accordance with the Texas Nonprofit Corporation Act (Business Organizations Code, Chapter 22).(8) Within 60 days of its designation as a nonprofit partner, each NP must enter into an agreement with the department detailing the responsibilities and duties of the nonprofit partner and the department. Each NP must maintain such an agreement with the department for as long as the entity is designated as a NP. The agreement may also address the obligations of a NP upon termination of the relationship between the NP and the department, including termination resulting from the dissolution of the NP.(9) NPs must promptly notify the department of any change in its legal or tax-exempt status.31 Tex. Admin. Code § 51.162
The provisions of this §51.162 adopted to be effective May 17, 2007, 32 TexReg 2655; Amended by Texas Register, Volume 43, Number 11, March 16, 2018, TexReg 1636, eff. 3/19/2018