1997-120-RES WHEREAS, STATE OF TEXAS IS A FUNDING PARTNER WITH THE COUNTY OF LAMAR AND COP

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" PERFORMING AGENCY will have in place legally sufficient Due Process Hearing Procedures for all of its employees filling state budgeted positions. i PERFORMING AGENCY will have full authority to employ, promote, suspend, demote, discharge, and transfer within its organization any and all state budgeted personnel funded by Attachllient(s) to this contract provided, however, that any demotion, suspension, or discharge of such state budgeted employees will be in accordance with the Due Process Hearing Procedures as set out above. The only distinction between state budgeted and local paid employees is that employees on state budgeted positions receive state benefits and are subject to certain duties, obligations, and restrictions as state employees as contained in state law. One such restriction, as contained in the State Appropriations Act, is that no employee paid on a statc budgeted position may receive a salary supplement from any source unless specifically authorized in the Appropriations Act or other state law. This prohibition includes, but is not limited to, the payment to such employee of a so-called "flat rate" car allowance or travel allowance. AJ.1y such travel or per diem allowance to these employees must be on a reimbursement basis. supported by appropriate records, and may not exceed the reimbursement for mileage and/or per diem allowed under the Appropriations Act and current state travel regulations. This restriction will apply whether travel funds are provided in Attachllicnt(s) under this contract or from any other sourcc. PERFORMING AGENCY will utilize RECEIVING AGENCY's policies and procedures for hiring and promoting individuals into state budgeted positions funded by this contract. Qualifications of any individuals filling these positions will be subject to approval of RECEIVING AGENCY's Bureau of Personnel Management. The purpose of the approval is to ensure that individuals occupying these positions mcet minimum educational and experience requirements. PERFORMING AGENCY will maintain required records and submit documents necessary to process personnel, payroll, leave and time records, and travel claims on state budgeted positions. PERFORMING AGENCY will be furnished state warrants by RECEIVING AGENCY for salary compensation or travel reimbursement for issuance to employees on state budgeted positions. An independent audit is not required as a condition of this contract if the Attachllient provides assistance through assignment of state budgeted positions and no funds are budgeted for local costs. PERFORMING AGENCY may be reimbursed for local personnel costs or other categories of expense used to fulfIll the scope of work of applicable Attachllient(s) in lieu of being furnished state payroll warrants after a state budgeted position becomes vacant. Reimbursement will not exceed the balance of funds on the state budgeted position after all benefits, obligations, and/or other cntitlemcnts are met. PERFORMING AGENCY's Director, or other person(s) authorized elsewhere in this contract, may submit a request for conversion. RECEIVING AGENCY will transmit formal approval and a revised budget to PERFORMING AGENCY to complete the conversion if the request is granted. PERFORMING AGENCY agrees to defend and indemnify RECEIVING AGENCY for any and all claims and/or judgments taken against any employees, state or local, or against the RECEIVING AGENCY, arising out of any claims or cause of action against any such employees, except to the extent that employees on state budgeted positions may be indemnified and the state may be liable for certain acts pursuant to Chapter 104 of the Civil Practice and Remedies Code of Texas and any other applicable law. The PERFORMING AGENCY agrees to indemnify and hold harmless the RECEIVING AGENCY for any and all claims and/or judgmcnts taken against RECEIVING AGENCY by employees of the PERFORMING AGENCY that are funded by the Attachment(s) to this contract. ARTICLE 29. FundinQ PartieiDation Relluirement PERFORMING AGENCY agrees funds provided through this contract will not be used for matching purposes in securing other funding unless otherwise directed or approved by RECEIVING AGENCY. (LHS) 1998 GENERAL PROVISIONS - Page 18 (8/97)