(a) The Deputy Executive Director for State Historic Sites or that person's designee shall work with members of the public to establish and maintain Supporting Nonprofit Partners (SNPs) to assist the Texas Historical Commission (THC) in carrying out its mission through the preservation of, and programming at, State Historic Sites as appropriate to each site.
(b) To be considered an SNP pursuant to this section, an entity must:
  (1) Either receive a 501c3 designation from the Internal Revenue Service and be incorporated in accordance with the Texas Nonprofit Corporation Act (Business Organizations Code, Chapter 22), or be fiscally sponsored by the Friends of the Texas Historical Commission (FTHC), and
  (2) Within 60 days of receiving an official 501c3 designation or notice of fiscal sponsorship by the FTHC, enter into a Memorandum of Agreement with the THC, which agreement will detail the duties and responsibilities of both parties.
(c) The SNP will promptly notify THC of any change to its legal or tax-exempt status.
(d) If an SNP ceases to exist, any funds raised for the benefit of the State Historic Site will be paid to THC or to the FTHC for use at that State Historic Site.
(e) SNPs subject to these provisions:
  (1) Will not hold or obligate THC funds.
  (2) Will comply with all applicable rules, regulations, and laws regarding discrimination based on race, color, national origin, sex, age, and disability.
  (3) Will not use or permit the use of THC's intellectual property without the express written agreement of THC, including trademarks, logos, names, and seals.
  (4) Will not employ a THC employee in a paid position or provide compensation or any direct personal benefit to a THC employee.
  (5) May use equipment, facilities, or services of employees of THC as long as such use follows a written agreement that provides for the payment of adequate compensation or identifies the way in which such use will benefit THC.
  (6) Will prepare and send to the appropriate THC Site Manager and to the THC Community Engagement Coordinator an annual report including a list of the primary activities undertaken during the previous year, a summary of significant achievements and challenges over the previous year, and other information requested by the THC, and an annual plan of activities proposed for the following year, also making said report and plan publicly available.
  (7) Will complete their annual IRS 990, 990-EZ, 990-N, or 990-PF, depending on the amount of their income and type of nonprofits status, and provide THC with proof of IRS receipt. They will also make the IRS 990 available to the general public, upon request, regardless of whether or not an SNP is required to file an IRS 990 with the IRS.
  (8) Will file their articles of incorporation, by-laws, most recent financial statements, and any updates to these documents with THC. These documents will be made available to the public upon request.
  (9) Will not engage in activities that would require it or a person acting on its behalf to register as a lobbyist under Texas law, Texas Government Code, Chapter 305. However, SNPs may provide information to the legislature or to other elected or appointed officials.
  (10) Will not donate funds to a political campaign or endorse a political candidate.
  (11) Will notify the THC Site Manager of all meetings and allow a THC representative to attend all meetings. This includes, but is not limited to, meetings of its general membership, managing board, and committees. The Site Manager must be notified by letter, email, or telephone sufficiently in advance of the meeting to allow the THC representative to attend. An SNP should also notify other SNPs associated with the property, facility, or program of all meetings and allow a representative to attend.
  (12) Will raise funds in support of their associated sites only for the specific purposes authorized in writing in advance by THC.
  (13) Will undertake programs that support THC's mission as agreed to in writing in advance by THC.
  (14) Will decline donations that require particular action to be taken by THC unless agreed to in writing in advance by THC.
  (15) Will account for all funds acquired by using Generally Accepted Accounting Principles.
  (16) Will use all donations received to benefit the facility, property, or program with which the SNP is associated or further the SNP's mission related to the facility, property, or program, including donations to defray operating costs.
  (17) May make unrestricted cash donations to THC, which THC may choose to designate for use for a specific project or program.
(f) The officers and directors of an SNP subject to these provisions:
  (1) Will adopt and maintain a conflict-of-interest policy. This policy must include safeguards to prevent board members or their families from benefiting financially from any business decision of the SNP.
  (2) Will ensure that any compensation paid to executives or managers is reasonable.
  (3) Will hold at least two regular meetings of the Board of Directors annually.
  (4) Will ensure that each board member and/or director is duly informed of the SNP's activities, and will provide new board members with the following:
    (A) A copy of the SNP's articles of incorporation and by-laws.
    (B) A copy of the SNP's most recent financial statements.
    (C) A copy of the THC's administrative rules on SNPs and sponsorship.
    (D) A copy of any current agreements between the SNP and THC.
(g) The following provisions shall govern an SNP's ability to ask for and accept sponsorships for their or THC's projects and programs:
  (1) For purposes of this section, a sponsorship is the payment of money, transfer of property, or performance of services in which there is no expectation of any substantial return benefit other than recognition or a non-substantial benefit.
  (2) All sponsorship requests must have prior written approval of the THC Site Manager.
  (3) All statewide sponsorships and their recognition must have prior written approval from the THC Executive Director.
  (4) All local sponsorships and their recognition must have prior written approval from the THC Site Manager whose area of responsibility includes the facility, property or program to be supported by the local sponsorship.
  (5) SNPs may not ask for or accept sponsorships from a person or entity in litigation with THC or determined by the THC to conflict with THC's mission or legislative mandates.
  (6) Recognition for sponsors:
    (A) Is allowed only in the context of the particular THC program that the sponsor has supported with a financial or in-kind contribution.
    (B) Is allowed only if the contribution is greater than the cost of recognition.
    (C) Will not be in the form of signage on motor vehicles or trailers owned by the state that were purchased or maintained with THC funds.
    (D) Will not overshadow the project, purposes of the project, mission, or branding of THC.
  (7) In determining the type of recognition appropriate in each case, THC will consider:
    (A) The level of contribution in terms of percentage of funds required to complete the program, event, or material.
    (B) The level of contribution related to total sponsorship dollars received.
    (C) The scope of exposure (for example, statewide, regional, local, or a single location).
    (D) The duration of exposure (for example, one day, one month, one year).
    (E) The sponsor's name or logo and a reference to sponsor's location may be broadcast or displayed. However, the recognition may not promote the sponsor's products, services, or facilities.
    (F) THC officers and employees may not act as the agent for any SNP or donor in negotiating the terms or conditions of any agreement related to the donation of funds, services, or property to THC by the SNP or donor.
(h) THC shall maintain a list of SNPs, which shall be made available to the public upon request.
(i) THC will not hold or obligate funds or property belonging to an SNP.
(j) THC may develop model policies and procedures for use by SNPs.
(k) THC will provide a liaison to serve as a resource to SNPs and to administer the terms of an SNP's Memorandum of Agreement with THC.
(l) THC employees may serve as non-voting members of the board of an SNP only in an ex-officio capacity.

Source Note: The provisions of this §16.7 adopted to be effective August 21, 2022, 47 TexReg 4968