(a) Each board of trustees must:
  (1) retain all financial records, supporting documents, statistical records, and any other documents pertinent to its community center budgets, contracts, performance/workload measure, and persons served for a period of five years. If audit discrepancies have not been resolved at the end of five years, the records must be retained until resolution;
  (2) deposit community center funds through the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation, or to secure deposits using collateral in a manner that protects the deposited funds; and
  (3) ensure that DADS and DSHS have unrestricted access to all facilities, records, data, and other information under control of the community center or its contractors as necessary to enable DADS and DSHS to audit, monitor, and review all financial and programmatic activities and services associated with the center as provided by Texas Health and Safety Code, §534.033(a).
(b) Each board of trustees must receive training as required by the Texas Health and Safety Code, §534.006, and this subsection.
  (1) Before assuming office, new members must receive initial training, including:
    (A) the importance of local planning and the roles and functions of the board of trustees, planning advisory committees, community center staff, and other service organizations;
    (B) the current philosophies and program principles on which service delivery systems are founded, information about the service and support needs of people with mental illnesses, mental retardation, and related conditions, and the range of environments in which those services may be delivered;
    (C) an overview of mental illnesses, mental retardation, and related conditions;
    (D) an overview of the current local and state service delivery system, including descriptions of the types of mental health and mental retardation services provided by the community center; and
    (E) applicable state and federal laws, rules, standards, and regulations.
  (2) Utilizing input from persons who have received or are receiving services, their family members, and advocates, the training programs must provide orientation in the perspectives and issues of persons receiving services.
  (3) A community center must develop an annual training program for its board of trustees.
    (A) Training methodologies may include:
      (i) presentations by staff at regular board sessions;
      (ii) on-site program visits;
      (iii) statewide and regional training conferences;
      (iv) seminars to enhance team building skills;
      (v) regional and cross-training with other community centers and their boards of trustees; and
      (vi) formal and informal meetings with tenured trustee members.
    (B) In addition to the topics required in Texas Health and Safety Code, §534.006 and paragraphs (1) and (2) of this subsection, training topics may include:
      (i) risk management;
      (ii) budget analysis;
      (iii) consumer rights;
      (iv) strategic planning; and
      (v) new legislative and contractual requirements of community centers.
(c) The approval and notification requirements in this subsection are in accordance with Texas Health and Safety Code, §534.021.
  (1) A board of trustees must ensure that its community center receives written approval from DADS and DSHS prior to purchase, lease-purchase, or any other transaction which will result in the community center's ownership of real property, including buildings, if DADS and DSHS funds or local match are involved. In addition, for acquisition of nonresidential property, the community center must notify each local agency at least 30 days before it enters into a binding obligation to acquire the property.
  (2) A community center must provide written notification to DADS and DSHS and each local agency at least 30 days before it enters into a binding obligation to acquire real property, including a building, if the acquisition does not involve the use of DADS and DSHS funds or local match. Upon request, the commissioners may waive the 30-day requirement to notify DADS and DSHS on a case-by-case basis.
  (3) All notices and requests for approval are submitted on the Real Property Acquisition and Construction Review Form and accompanied by supporting information including, but not necessarily limited to:
    (A) the reason for purchasing the property or a brief explanation of the purpose it will serve;
    (B) a summary of the plan for paying for the property, including a statement regarding whether DADS or DSHS funds or local match will be used, and if DADS or DSHS funds will be used, how the funds will be used, such as directly or in the retirement of any debt associated with the acquisition;
    (C) if unimproved, an assessment of the suitability of the property for construction purposes or, if improved, an assessment of the current condition of the buildings;
    (D) an independent appraisal of the real estate the community center intends to purchase conducted by an appraiser certified by the Texas Appraiser Licensing and Certification Board; however, the board of trustees may waive this requirement if the purchase price is less than the value listed for the property by the local appraisal district and the property has been appraised by the local appraisal district within the past two years; and
    (E) a statement that the board of trustees and executive staff are not participating financially in the transaction and will derive no personal benefit from the transaction.

Source Note: The provisions of this §1.310 adopted to be effective May 25, 2000, 25 TexReg 4540; transferred effective September 1, 2004, as published in the Texas Register September 10, 2004, 29 TexReg 8841; amended to be effective September 11, 2011, 36 TexReg 5699