TITLE 10.COMMUNITY DEVELOPMENT

Part 5. TEXAS DEPARTMENT OF ECONOMIC DEVELOPMENT

Chapter 195. MEMORANDA OF UNDERSTANDING

10 TAC §§195.1-195.10

The Texas Department of Economic Development (department) adopts the repeal of §§195.1-195.10, in its entirety, concerning the Memoranda of Understanding with the Texas Department of Agriculture and the Texas Agricultural Finance Authority, the Texas Workforce Commission, the Texas General Land Office, the Texas Department of Housing and Community Affairs, the Comptroller of Public Accounts, the Texas Department of Transportation and the Texas Parks and Wildlife Department, the Texas Natural Resource Conservation Commission, the Texas Historical Commission, the General Services Commission, and the Texas Alternative Fuels Council. The repeal is being adopted without changes to the proposed text as published in the December 22, 2000, issue of the Texas Register (25 TexReg 12557).

The repeal is necessary to accurately reflect current law and to allow for the adoption of the new Memoranda of Understanding.

The department received no comments regarding the proposed repeal.

The repeal of §§195.1-195.10 is adopted under the authority of Texas Government Code, §481-0044(a) which gives the department the authority to adopt rules to carry out its responsibilities; Texas Government Code, §481.028(d) which directs that the Memoranda of Understanding be adopted as rules of the agencies; and Texas Government Code, Chapter 2001, Subchapter B which prescribes the standards for rulemaking by state agencies.

Section 481.028 is affected by the adopted repeal.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 23, 2001.

TRD-200101123

Tracye McDaniel

Deputy Executive Director

Texas Department of Economic Development

Effective date: March 15, 2001

Proposal publication date: December 22, 2000

For further information, please call: (512) 936-0177


10 TAC §§195.1-195.12

The Texas Department of Economic Development (department) adopts new Chapter 195, §§195.1-195.12, concerning Memoranda of Understanding with the Department of Agriculture, the Texas Workforce Commission, the Texas General Land Office, the Texas Department of Housing and Community Affairs, the Comptroller of Public Accounts, the Texas Department of Transportation and the Texas Parks and Wildlife Department, the Texas cd usrsion, the Texas Commission on the Arts, the General Services Commission, the Texas Alternative Fuels Council, the Texas Agricultural Finance Authority, and the Health and Human Services Commission. Section 195.6 is adopted with changes to the proposed text as published in the December 29, 2000, issue of the Texas Register (25 TexReg 12878). Sections 195.1-195.5 and §§195.7-195.12 are adopted without changes and will not be republished.

Texas Government Code, Chapter 481.028, requires that the department enter into a memoranda of understanding with other state agencies involved in economic development to cooperate in planning and budgeting. Texas Government Code, Chapter 481.028, further directs that the memoranda of understanding be adopted as rules of the agencies. Article 7 of House Bill 2641, 76th Legislature provided that the commissioner of health and human services and the governing board of the department enter into a memorandum of understanding as necessary to implement the transfer of the administration of the Empowerment Zone and Enterprise Community grant program to the department.

Two comment letters were received on the proposal. The first, from the Texas Municipal League, supports the proposed memoranda of understanding between the department and various state agencies, and believes that its economic development and tourism goals will greatly benefit local governments. The second, from the Texas Department of Transportation, found §195.6 of the memoranda of understanding contained minor typographical errors as it was proposed, however, there are no substantive changes: in subsection (c)(1)(C) on page 12881, there should not be a question mark after the word agencies on the fourth line of the paragraph; it should read agencies'; in subsection (d) on page 12883, the reference to Section V has been changed from the original version of the memoranda of understanding to subsection (e) Termination in the proposal. It should read subsection (e) of this section.

The new sections are adopted under the authority of the Texas Government Code, Chapter 481.0044(a) which requires the Department adopt rules to carry out its responsibilities; Texas Government Code, Chapter 481.028(d) which directs that the Memoranda of Understanding be adopted as rules of the agencies; and Texas Government Code, Chapter 2001, Subchapter B which prescribes the standards for rulemaking by state agencies.

Section 481.028 is affected by the adopted rules.

§195.6.Memorandum of Understanding with the Texas Department of Transportation, the Texas Parks & Wildlife Department, the Texas Commission on the Arts, and the Texas Historical Commission.

(a)

Parties. Pursuant to §§481.028(b)(5), 481.172(8), and 444.030(b)(3) of the Texas Government Code and House Bill No. 1, General Appropriations Act, 76th Legislature, Regular Session, this memorandum of understanding is made and entered into by and between the Texas Department of Economic Development (TDED), the Texas Department of Transportation (TxDOT), Texas Parks and Wildlife Department (TPW), the Texas Commission on the Arts (TCA), and the Texas Historical Commission (THC) to formalize their agreement to cooperate and coordinate efforts in marketing and promoting Texas as a premier travel destination and to provide services to travelers.

(b)

Recitals.

(1)

Whereas, the Texas Department of Economic Development, the Texas Department of Transportation, Texas Parks and Wildlife Department, Texas Commission on the Arts, and the Texas Historical Commission, collectively the State Agency Partners, are among the state agencies charged with promoting Texas tourism destinations as well as travel and tourism in Texas; and

(2)

Whereas, §481.022(5) of the Texas Government Code requires TDED to promote the state as a premier tourist destination and §481.172 of the Texas Government Code sets forth the responsibilities of TDED in promoting Texas as a tourist destination. §481.028(b)(5) and §481.172(8) of the Texas Government Code direct that TDED, TxDOT, TPW, THC and TCA cooperate in all matters relating to each agency's efforts to promote tourism; and

(3)

Whereas, Article 6144(e), Texas Civil Statutes (1995) authorizes TxDOT to publish such pamphlets, bulletins, maps and documents as it deems necessary to serve the motoring public and road users, and Article 6144(e) requires TxDOT to maintain and operate Travel Information Bureaus at the principal gateways to Texas to provide road information, travel guidance and various descriptive materials designed to aid and assist the traveling public and to stimulate travel to and within Texas; and

(4)

Whereas, Texas Parks and Wildlife Code, §12.006 and §13.017, authorizes TPW to provide certain information to the public relating to outdoor recreation, state parks, wildlife management areas, and wildlife conservation; and Texas Parks and Wildlife Code, §§13.002, 13.101, 13.102, 81.401 and 81.405, authorizes TPW to acquire land, manage natural and cultural resources, and operate state parks and state wildlife management areas for public outdoor recreation; and

(5)

Whereas, §444.021(a)(1), (2), and (5) of the Texas Government Code, directs the TCA to foster the development of a receptive climate for the arts that will culturally enrich and benefit state citizens in their daily lives, to make visits and vacations to the state more appealing to the world, and to provide advice to the General Services Commission, THC, Texas State Library, TDED, TxDOT, and other state agencies to provide a concentrated state effort in encouraging and developing an appreciation for the arts in the state; and

(6)

Whereas, §442.005 of the Texas Government Code sets forth the duties and responsibilities of THC and authorizes THC to promote the appreciation of historic sites, structures, or objects in the state through a program designed to develop tourism and to promote heritage tourism by assisting persons, including local governments, organizations, and individuals, in the preservation, enhancement, and promotion of heritage and cultural attractions in this state;

(7)

Now, therefore, the parties agree to cooperate in developing and promoting Texas as a premier travel destination in the following subject areas. The subject areas and each agency's responsibilities are as follows:

(c)

Undertakings by Each Party.

(1)

Communications.

(A)

Each of the five agencies will identify internal representatives from the cross-functional areas to regularly communicate status reports to all cooperating agencies. Agency cross-functional areas will outline project goals and timelines. Status report meetings will include reviews of goals and timelines.

(B)

Primary agency representatives to be designated by Executive Directors will meet as often as necessary, but no less than twice annually, to coordinate efforts related to tourism marketing and promotion. Other committees or task forces will be assigned as the need arises.

(C)

Executive Directors of the participating five state agencies will be briefed at least once a year during a joint meeting. During each fiscal year, periodic status report meetings will include cooperating agencies'. Executive Directors, as needed. All cross-functional goals, timelines and project status reports will be reviewed by the primary agency representatives.

(D)

The participating agencies will produce a unified, annual tourism marketing overview that describes the combined tourism marketing efforts of each agency. This overview will be presented to the Executive Directors of each of the participating five state agencies during their joint annual meeting.

(E)

The five participating state agencies acknowledge that other state agencies have a role in tourism and may be affected by the tourism marketing efforts of the five primary agencies. To that end, the five primary agencies agree that, when appropriate, other state agencies comprising the State Agency Tourism Council will be included in the planning, communications, meetings and other coordination efforts conducted under this agreement. These agencies will also be provided copies of status reports and the annual tourism marketing overview. These other agencies include, but are not limited to: Texas A&M University; Office of Music, Film, Television and Multimedia; Texas General Land Office; Texas Department of Agriculture; Texas Department of Public Safety; and the Texas State Preservation Board.

(2)

Marketing.

(A)

Each agency will pay for its own marketing and promotional activities.

(B)

All five agencies recognize that the overall goal of the state's tourism marketing effort is to generate travel to and within Texas. While some agencies may have a responsibility to conduct broad-based tourism marketing, others may have a responsibility to focus more heavily on a particular segment of tourism, such as nature tourism, heritage tourism or cultural tourism. All five agencies recognize the importance of achieving a coordinated, statewide marketing effort that includes all the tourism activities the State of Texas offers. To that end, appropriate staff members of each agency will meet at least twice a year to coordinate and review each agency's annual tourism marketing plans, including identifying cooperative and/or cost sharing opportunities related to, at a minimum:

(i)

Advertising

(ii)

Consumer/Trade Shows

(iii)

Workshops/Training

(iv)

Public Relations

(v)

Familiarization (FAM) Tours

(vi)

Standard Fulfillment Packet design and contents review to ensure the pieces meet the needs of the intended audiences

(vii)

Use of Technology

(viii)

Publications

(ix)

Research

(x)

Education and Training

(xi)

Resource Sharing

(C)

To provide a consistent and unified state tourism marketing effort, each agency will ensure that its tourism marketing and promotional activities, including appropriate materials, adhere to:

(i)

Use of the trademarked "Texas. It's Like A Whole Other Country" slogan and the Texas "Patch," and when appropriate, the "1-800-8888-TEX" phone number and the www.TravelTex.com website.

(ii)

The seven tourism marketing regions known as the Panhandle Plains, Prairies and Lakes, Piney Woods, Gulf Coast, South Texas Plains, Hill Country and Big Bend Country.

(iii)

Each agency's website shall provide consumers with links to the other four agencies' websites.

(D)

The members recognize that promotion of state-operated sites including state parks and historic sites is important. State agency partners will look for ways to more effectively coordinate efforts to market and promote these sites.

(3)

Consumer/Trade Shows. The state agencies will coordinate their participation in domestic and international consumer and travel trade shows/initiatives, developing a coordinated schedule prior to fiscal year budget planning deadlines. Each of the five agencies may participate in staffing the shows, depending upon each agency's focus and budget restrictions. Each agency will be responsible for its participation costs at such trade shows. The agencies will use a consistent and unified travel and tourism marketing theme in a manner appropriate for each show, including use of the trademarked "Texas. It's Like A Whole Other Country" slogan and the Texas "Patch." Texas ancillary products and magazines may be promoted at these shows. TDED will be the prime Texas representative at shows conducted in out-of-state markets. TxDOT, TPW, TCA and THC may participate at other shows with collateral materials and staff where appropriate.

(4)

Fulfillment.

(A)

TDED is the agency with primary responsibility for conducting advertising and marketing activities to generate consumer requests for State of Texas travel literature. TDED maintains the 1-800-8888-TEX toll-free telephone number and the www.TravelTex.com website to receive such consumer requests. TDED will continue to contract and pay for the services required to maintain these consumer resources.

(B)

TxDOT is the agency with primary responsibility for the fulfillment of consumer travel literature requests. TxDOT will contract and pay for printing, storage, handling, mail preparation, packaging and postage for consumer requests. Data entry costs for coupon cards, tip-in cards, business reply cards or other sources will be reimbursed to TxDOT at cost by any agency using this service.

(C)

TxDOT may negotiate with other agencies working under this memorandum to provide fulfillment services for their publications and/or products. These agreements will be for actual costs for packaging, handling, storage and postage.

(D)

TDED may perform fulfillment of consumer requests for travel literature and TDED's licensed merchandise received via its 1-800 telemarketing contractor and/or the TravelTex.com website, when such fulfillment services are not made available by TxDOT. These services include, but are not limited to, first class mail and/or express delivery of such fulfillment materials and/or merchandise.

(E)

The Travel Information System (TIS) fulfillment database created by fulfillment responses is cooperatively owned by both TDED and TxDOT. Decisions concerning functional operation, internal or external marketing and any revenues gained from the sale of this database will be made cooperatively by the tourism/travel division directors of both agencies. Revenues generated from the marketing and sale of the fulfillment database will be shared by the two agencies based on a percentage of the inquiries generated by each agency during the fiscal year.

(F)

Working level meetings will be held bimonthly, at a minimum, to discuss tourism inquiry fulfillment, coordinate fulfillment activities, and other issues of mutual interest. The primary focus of these meetings will be to continually improve the effectiveness and efficiency of the fulfillment system.

(G)

TxDOT will continue to develop, maintain and enhance the Travel Information System (TIS) with cooperation and input from TDED and, when appropriate, other State Agency Partners. TxDOT will have final approval on any enhancement proposals which are generated by the fulfillment team or other sources.

(H)

TxDOT will make available to travel industry members, TDED and their advertising agency staff, vendors, and State Agency Partners, the software to utilize TIS and the data contained therein.

(5)

Technology. State Agency Partners will form a technology committee that will meet at least twice annually to coordinate use of technology as a means of marketing and developing Texas as a tourist destination. This committee will address, at a minimum, the following issues:

(A)

Enhancing tourism marketing through new and innovative technology products and methods, particularly expanded use of the Internet.

(B)

Enhancements of and collaboration on Texas tourism websites www.TravelTex.com, www.tpwd.state.tx.us, www.thc.state.tx.us, and www.artonart.com to ensure consumers are provided a consistent marketing message and easy access to tourist information, events and services contained on each site.

(C)

Increased use of the Travel Information System (TIS) database by each agency.

(D)

Enhanced methods of sharing electronic data, particularly via the Internet.

(6)

Publications.

(A)

The magazine staffs of Texas Highways and Texas Parks & Wildlife will confer to avoid inappropriate redundancy of topical content. Information of mutual interest and marketing opportunities shall be discussed in informal meetings throughout the year and at an annual meeting attended by both publishers and other appropriate staff members.

(B)

All agencies will convene at least annually to discuss any new tourism publications, planned or produced, or major revisions to tourism publications. The agencies may choose to incorporate this review during either of the two marketing meetings. Other state agencies involved in tourism will be invited, as appropriate, to discuss publications.

(7)

Research.

(A)

The agencies will coordinate research workplans and projects to ensure that the state's travel research is comprehensive and appropriate to guide the tourism marketing and promotional activities of the five agencies.

(B)

TDED will be the lead agency in conducting and gathering Texas tourism research. Any agency under this agreement may conduct other research independently. Each agency will pay for its own research or share costs as may be identified in the research workplans. The five agencies will distribute their new research publications, as they are completed and become available, to the other agencies.

(8)

Education and Training.

(A)

TDED will take the lead in organizing community training and education for development for the Texas travel industry partners. TxDOT, TPW, TCA, and THC may assist in the organization and sponsorship of these community training sessions, together with other state, regional, and local organizations. Training sessions may include, but are not limited to, identification of and packaging and marketing tourism products, nature tourism, cultural tourism, heritage tourism, hospitality training, and development and funding techniques. All five state agencies are encouraged to participate in the community training and education seminars to educate the travel industry about the state's tourism activities and available services.

(B)

State Agency Partners will continue to conduct their own training seminars and conferences. However, the agencies recognize the value of cross training and sharing training information among the State Agency Partners and will inform the other partners of such programs and opportunities.

(9)

Tourism Facilities. TxDOT will continue to operate and fund TxDOT's existing Travel Information Centers. TxDOT's Travel Information Centers will be a major distribution point for state agency tourism literature to tourists driving through the state. These information centers should promote tourism-related marketing and promotional activities of the five state agencies. TDED, TCA, THC and TPW may provide information and travel literature to the Travel Information Centers when appropriate. TxDOT will continue providing collateral materials and advice to city information centers in an effort to expand state travel information throughout Texas. State Agency Partners will use their facilities as distribution points for travel information as appropriate. Texas state parks, fisheries centers and wildlife management areas can also serve as distribution points for tourism material.

(10)

Resource Sharing.

(A)

In order to maximize the efficient utilization of state resources and facilitate sharing of those resources among State Agency Partners, the partners that maintain audiovisual files (still photography, video, and original art work) will provide access to MOU partners. Agencies shall be reimbursed at cost for any duplication or material transfers.

(B)

Budgets permitting, State Agency Partners will share agency staff expertise and staff time for training sessions and consultations around the state.

(d)

Term. This memorandum of understanding shall be effective upon execution by representatives of each agency and shall automatically renew each year on the anniversary of the effective date, unless terminated in accordance with the provisions of subsection (e) of this section.

(e)

Termination. This memorandum of understanding renews each year on the anniversary of the effective date, unless terminated by entering into a new agreement that supercedes this agreement, or by legislative action. Any of the State Agency Partners may terminate its participation in this agreement upon written notice to the other State Agency Partners, and the agreement shall continue in effect among the other Partners. In the event that the functions of any of the State Agency Partners are altered or abolished by law, rendering portions of this agreement unenforceable, the remaining portions of the agreement shall not in any way be affected or impaired.

(f)

Amendments and Changes.

(1)

Any alteration, addition, or deletion to the terms of this agreement shall be by amendment hereto in writing and executed by all parties.

(2)

This memorandum of understanding does not supercede any other agreements or contracts that may exist now or that may be executed in the future between or among all or some of the participating agencies.

(g)

Compliance with Laws and Budgetary Constraints. The obligations of the parties in carrying out the provisions of this MOU are subject to the statutory authority of each agency, all other applicable laws and the appropriations available to each agency to accomplish the purposes set forth herein. This memorandum of understanding does not include the transfer of any personnel or funds from one agency to another.

(h)

Adoption as Rule. The Texas Department of Economic Development, the Texas Department of Transportation, the Texas Parks and Wildlife Department, the Texas Commission on the Arts, and the Texas Historical Commission shall adopt this Memorandum of Understanding as a rule in compliance with §481.028, Texas Government Code. Section 444.030(e), Texas Government Code, further requires the Texas Commission on the Arts to publish the Memorandum of Understanding in the Texas Register .

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 16, 2001.

TRD-200101016

Tracye McDaniel

Deputy Executive Director

Texas Department of Economic Development

Effective date: March 15, 2001

Proposal publication date: December 29, 2000

For further information, please call: (512) 936-0177


Chapter 200. ADMINISTRATION

10 TAC §200.1

The Texas Department of Economic Development (Department) adopts new chapter 10 TAC Chapter 200. Administration. Section 200.1 adopts by reference the rules of the General Services Commission related to Historically Underutilized Businesses. Government Code §§2161.002, 2161.003 and 2161.123, require the Department to adopt the Commission's rules as its own rules. The department adopts by reference the rules of the Texas General Services Commission in 1 TAC §§111.11-111.28, concerning historically underutilized business certification program, which became effective October 4, 1995. The new chapter is adopted with changes to the proposed text as published in the December 29, 2000, issue of the Texas Register (25 TexReg 12886).

No comments were received regarding the adoption of the new chapter.

Government Code §§2161.002, 2161.003, and 2161.123, require the Department to adopt the Commission's rules as its own rules.

Texas Government Code, §2161 is affected by this adoption.

§200.1.Historically Underutilized Businesses.

The Texas Department of Economic Development (Department) adopts by reference the rules promulgated by the General Services Commission (GSC) regarding historically underutilized businesses, which are set forth in 1 TAC §§111.11-111.28, as amended.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 21, 2001.

TRD-200101087

Tracye McDaniel

Deputy Executive Director

Texas Department of Economic Development

Effective date: March 13, 2001

Proposal publication date: December 29, 2000

For further information, please call: (512) 936-0177


10 TAC §200.11

The Texas Department of Economic Development also adopts new §200.11 adopting by reference the Office of the Attorney General's rules relating to Contract Negotiation, Mediation, and Other Assisted Negotiation and Mediation Processes. The rule is adopted with changes to the proposed text as published in the December 29, 2000, issue of the Texas Register (25 TexReg 12886).

No comments were received regarding the adoption of the new rule.

The rule is adopted pursuant to Texas Government Code, §2260.052, which directs the Office of the Attorney General (OAG) and the State Office of Administrative Hearings (SOAH) to provide rules for negotiation and mediation that units of government may adopt.

Texas Government Code, §2260 is affected by this adoption.

§200.11.Contracts Negotiation, Mediation, and Other Assisted Negotiation and Mediation Processes.

The Texas Department of Economic Development (Department) adopts by reference the rules promulgated by the Office of the Attorney General (OAG) and the State Office of Administrative Hearings (SOAH) relating to the procedures for the negotiation and mediation of certain breach of contract claims asserted by contractors against the State of Texas, pursuant to §9 of House Bill 826, 76th. R.S., 1 TAC Chapter 68, Subchapters A-C, §§68.1, 68.3, 68.5, 68.7, 68.21, 68.23, 68.25, 68.27, 68.29, 68.31, 68.33, 68.35, 68.37, 68.47, 68.49, 68.51, 68.53, 68.55, 68.57, 68.59, and 68.61.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 21, 2001.

TRD-200101088

Tracye McDaniel

Deputy Executive Director

Texas Department of Economic Development

Effective date: March 13, 2001

Proposal publication date: December 29, 2000

For further information, please call: (512) 936-0177