(a) The Board is authorized to participate in the establishment and operation of affiliated nonprofit organizations whose purpose is to raise funds or provide services or other benefits to the board by Texas Government Code §443.030 and §445.013.
(b) The board may provide to an affiliated non-profit organization covered by this chapter:
  (1) fundraising and solicitation assistance;
  (2) staff services to coordinate activities;
  (3) administrative and clerical services;
  (4) office and meeting space;
  (5) training; and
  (6) other miscellaneous services as needed to further the duties and purposes of the organization in support of the board.
(c) The affiliated non-profit organization may provide:
  (1) postage;
  (2) printing, including letterhead and newsletters;
  (3) special event insurance;
  (4) recognition of donors;
  (5) bond and liability insurance for organization officers; and
  (6) other miscellaneous services as needed to further the duties and purposes of the board.
(d) The affiliated non-profit organization and the board shall enter into a memorandum of understanding (MOU) which contains specific provisions regarding:
  (1) the relationship between the affiliated non-profit organization and the board, and a mechanism for solving conflicts or disputes;
  (2) fundraising and solicitation;
  (3) the use of all funds and other donations from fundraising or solicitation, less legitimate expenses as described in the MOU, for the benefit of the board;
  (4) the maintenance by the affiliated non-profit organization of receipts and documentation of all funds and other donations received, including furnishing such records to the board; and
  (5) the furnishing to the board of any audit of the affiliated non-profit organization by the Internal Revenue Service or a private firm.
(e) An employee of the board may not serve as an employee, elected officer or director of an affiliated non-profit organization. An employee of the board may serve as an ex officio, non-voting director of an affiliated non-profit organization.

Source Note: The provisions of this §111.33 adopted to be effective July 1, 2012, 37 TexReg 4891