TITLE 31.NATURAL RESOURCES AND CONSERVATION

Part 2. TEXAS PARKS AND WILDLIFE DEPARTMENT

Chapter 51. EXECUTIVE

Subchapter G. NONPROFIT ORGANIZATIONS

31 TAC §§51.165 - 51.168

The Texas Parks and Wildlife Commission adopts new §§51.165-51.168, concerning Nonprofit Partners, Sponsorships, Employee Fundraising, and Youth-appropriate Advertising. Section 51.165, concerning Best Practices of the Official Nonprofit Partner (ONP), is adopted with changes to the proposed text as published in the December 14, 2001, issue of the Texas Register (26 TexReg 10228). Sections 51.166-51.168 are adopted without changes and will not be republished. The change to §51.165 alters internal references cited in subsection (c) in response to public comment. The department intended only for the Official Nonprofit Partner to undertake an annual independent audit.

The new rules are necessary to comply with the provisions of Senate Bill 305, enacted by the 77th Texas Legislature, which require the commission to promulgate regulations governing best practices for nonprofit partners of the agency, guidelines for the solicitation and acceptance of sponsorships from private entities by the official nonprofit partner, guidelines for the solicitation and acceptance of gifts of greater than $500 in value by department employees, and the types of advertising appropriate for viewing by youth.

New §51.165, concerning Best Practices of the Official Nonprofit Partner, will function by establishing best practices criteria recommended by the Sunset Advisory Commission. The criteria will formalize the interactions among the agency, nonprofit partners, and the official nonprofit partner and standardize the policies and procedures used by each in cooperative furtherance of the agency’s mission. The purpose of the proposed new rule is to more clearly separate agency functions from private functions, provide for greater public accountability, and prevent the potential perception that conflicts of interest might exist in the absence of clear guidance.

New §51.166, concerning Sponsorships, will function by establishing protocols for solicitation and acceptance of financial contributions on behalf of the agency by nonprofit partners in exchange for public recognition of the sponsors’ involvement in furthering the mission of the agency. The purpose of the new section is to ensure that in the process of supporting and furthering the agency’s mission, sponsorship agreements between the nonprofit partner and private entities do not either detract from the agency’s mission or create the perception that the agency’s legislative and regulatory obligations are in any way being compromised.

New §51.167, concerning Employee Fundraising, sets forth the requirements for solicitation and acceptance of gifts equal to or greater than $500 in value by department employees and department employees acting on behalf of a nonprofit partner. The purpose of the new section is to track and record the activities of publicly funded fundraising efforts to ensure that the agency is in compliance with S. B. 305.

New §51.168, concerning Youth-appropriate Advertising, limits advertising that is appropriate for youth viewing to those advertisements that do not include alcohol or tobacco products.

The department received one comment requesting that the rules be revised to prevent employees of Texas Parks and Wildlife from receiving scholarships awarded by the Official Nonprofit Partner (ONP) if the source of the scholarship is a sponsor or other entity doing business with the department. The commenter felt that conflicts of interest could arise. The department disagrees with the comment and responds that 1) it is a violation of state law (Penal Code, Chapter 36) for a public servant to trade on his or her influence, and 2) the ONP is a private entity that the department regulates under the narrowly circumscribed powers set forth by the legislature. No changes were made as a result of the comment.

The department received one comment pointing out that the proposed rules require sponsorship opportunities that include endorsements to be made available to the public, which would allow alcohol and tobacco products to be advertised. The department disagrees with the comment and responds that the regulation in question requires such sponsorship opportunities to be made available to the public, not that the endorsements be made available to the public. No changes were made as a result of the comment.

The department received one comment asserting that because the department regulates the use of alcoholic beverages on public waterways, the department would be in violation of the proposed rules, since the ONP is not allowed to accept sponsorships from any company or entity that is regulated by the department at the time of consideration. The department disagrees, and responds that it does not regulate the use of alcoholic beverages on public waterways and has no statutory authority to do so. Game Wardens, as commissioned peace officers, can and do enforce provisions of the Penal Code involving alcohol-related offenses, but that is not the same thing as regulatory oversight. No changes were made as a result of the comment.

The department received one comment stating that although the proposed rules require youth-appropriate advertising to be free of alcohol and tobacco products, the rules are vague as to implementation. The department disagrees with the comment and responds that the rule in question is quite clear. No changes were made as a result of the comment.

The department received one comment stating that although the department distributes a version of hunting and fishing regulations that does not contain advertisements for tobacco and alcohol products, the adult version of the publication is still available to minors. The commenter requested that the department remove all alcohol and tobacco advertising the publication in order to be consistent with policies governing youth-appropriate advertising. The department agrees with the commenter that the publication is readily available; however, the youth-appropriate version is intended for use in schools and hunter education classes. The rights to publish a summary of hunting and fishing regulations in the Outdoor Annual are the contractual property of a private company; however, that company currently furnishes a youth-appropriate publication. No changes were made as a result of the comment.

The department received one comment asserting that children are banned from outreach events sponsored by alcohol or tobacco interests, and that the exclusion of youth from outreach activities is unacceptable. The department disagrees with the comment and responds that under the regulations of the Texas Alcoholic Beverage Commission (16 TAC §45.106), a person must be of legal drinking age to enter a promotion sponsored by an entity affiliated with the alcoholic beverage industry. To be sure, children may attend and participate in such events, but are forbidden only from registering and being eligible to win prizes. The department made no changes as a result of the comment.

One comment voiced concern about the requirement that the Presiding Officer of the Parks and Wildlife Commission appoint a majority of the board. The comment was made by a member of the board of a smaller nonprofit. The regulation in question applies only to the ONP, and not to any other entity. No changes were made as a result of the comment.

Four commenters requested that smaller nonprofit partners be exempt from the auditing requirements of §51.165(d)(3). The department agrees and has made changes accordingly.

The rules are adopted under Parks and Wildlife Code, Chapter 11, Subchapter J, which requires the commission to adopt rules governing best practices for nonprofit partners of the agency, and guidelines for the solicitation and acceptance of sponsorships from private entities by the official nonprofit partner. The rules are also adopted under Parks and Wildlife Code, Chapter 11, Subchapter B, which requires the commission to adopt rules relating to guidelines for the solicitation and acceptance of gifts equal to or greater than $500 in value by department employees and the types of advertising that are appropriate for viewing by youth.

§51.165.Best Practices of the Official Nonprofit Partner (ONP).

(a) Composition of the board.

(1) The Presiding Officer of the Texas Parks and Wildlife Commission shall appoint a majority of board members.

(2) Current TPW employees will not be eligible to serve as voting members of the Board.

(b) General provisions. The official nonprofit partner (ONP) shall:

(1) adopt a conflict of interest policy that precludes board members from benefiting financially from any business decision of the ONP;

(2) publish an annual report each year and make it available to the general public; and

(3) make its current IRS 990 return, its annual audit, and a copy of its application to the IRS for exempt status available to the general public upon request.

(c) TPW employee involvement.

(1) No TPW employee shall hold a paid position with the ONP nor will any employee receive direct personal benefits from the ONP.

(2) The ONP may, however, reimburse TPW employees for legitimate, documented expenses. Additionally, the ONP may award scholarships to TPW employees from private, donor-directed sources.

(3) A TPW employee soliciting or accepting gifts or donations of equal to or greater than $500 in value on behalf of the ONP shall comply with the provisions of §51.167 of this title (relating to Employee Fundraising Activities).

(d) Accounting and Reporting.

(1) The ONP shall adopt financial procedures that govern acceptance of and access to:

(A) donor-restricted funds;

(B) unrestricted funds; and

(C) state funds. All state funds will be spent in support of TPW-established priorities.

(2) TPW employees shall not directly spend or obligate ONP funds. The ONP and its employees will control all expenditures.

(3) An independent accounting firm shall audit the ONP annually. A copy of that audit shall be sent to the TPW executive director. Any state funds received by the ONP shall be subject to audit by the State Auditor’s Office.

(e) Compliance with state and federal requirements.

(1) Expenditures of state funds by the ONP for a TPW project shall meet all applicable state and federal requirements governing TPW spending.

(2) State funds held by the ONP shall be subject to investment according to Government Code, Chapter 2256. State funds held by the ONP shall be invested by competent investment professionals to yield the highest returns possible.

(f) Sponsorship. When consistent with the mission of TPW, the ONP may solicit and accept corporate sponsorships. The ONP shall follow the criteria set forth in §51.201 of this title (relating to Sponsorships) when seeking, accepting, and administering corporate sponsorships. Any interested party may submit a proposal for consideration. Sponsorship opportunities that include endorsements shall be made available to the public. All sponsorship proposals shall be given equal consideration.

(g) Lobbying. The ONP shall not use state funds to influence legislative action either by the ONP or by others funded by the ONP with state funds.

(h) Review. Not later than three years following the selection of an ONP by the commission, the commission shall assess whether the purposes for which the ONP was created still exist, if the ONP is serving those purposes, and if the ONP is still needed.

(i) The provisions of subsections (b), (c), (d)(1) and (2), and (e) of this section shall also apply to nonprofit partners as defined in Parks and Wildlife Code, §11.201.

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 April 9, 2002.

TRD-200202188

Gene McCarty

Chief of Staff

Texas Parks and Wildlife Department

Effective date: April 29, 2002

Proposal publication date: December 14, 2001

For further information, please call: (512) 389-4775


Chapter 59. PARKS

Subchapter F. STATE PARK OPERATIONAL RULES

31 TAC §59.132

The Texas Parks and Wildlife Commission adopts an amendment to §59.132, concerning General Rules, without changes to the proposed text as published in the December 14, 2001, issue of the Texas Register (26 TexReg 10241).

The amendment is necessary to ensure that equines entering state parks are free of a contagious equine disease, Equine Infectious Anemia, that could be transmitted to other equines.

The amendment functions by requiring persons who bring equines to a state park or allow equines to enter a state park to have evidence that the animals have been tested negative for Equine Infectious Anemia (EIA).

The department received 16 comments in favor of adoption of the proposed amendment, and no comments in opposition.

Greater Houston Horse Council, Trail Association of Ray Roberts, and Texas Equestrian Trail Riders Association commented in favor of the proposed amendment.

The rules are adopted under Parks and Wildlife Code, §13.102, which authorizes the commission to adopt regulations governing the activities of park users.

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 April 9, 2002.

TRD-200202190

Gene McCarty

Chief of Staff

Texas Parks and Wildlife Department

Effective date: April 29, 2002

Proposal publication date: December 14, 2001

For further information, please call: (512) 389-4775


Chapter 65. WILDLIFE

Subchapter H. PUBLIC LANDS PROCLAMATION

31 TAC §65.190, §65.199

The Texas Parks and Wildlife Commission adopts an amendment to §65.190, concerning Application, and §65.199, concerning General Rules of Conduct, which are part of the Public Lands Proclamation, without changes to proposed text as published in the December 14, 2001, issue of the Texas Register (26 TexReg 10241).

The amendments are necessary to ensure that equines entering public hunting lands are free of a contagious equine disease, Equine Infectious Anemia, that could be transmitted to other equines.

The amendment to §65.190 will function by allowing the amendment to §65.199 to have effect on certain federal properties. The amendment to §65.199 will function by requiring persons who bring equines to public hunting lands or allow equines to enter public hunting lands to have evidence that the animals have been tested negative for Equine Infectious Anemia (EIA).

The department received 16 comments in favor of adoption of the proposed amendment, and no comments in opposition.

Greater Houston Horse Council, Trail Association of Ray Roberts, and Texas Equestrian Trail Riders Association commented in favor of the proposed amendment.

The rules are adopted under Parks and Wildlife Code, §81.405, which authorizes the commission to adopt regulations governing recreational activities on wildlife management areas.

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 April 9, 2002.

TRD-200202191

Gene McCarty

Chief of Staff

Texas Parks and Wildlife Department

Effective date: April 29, 2002

Proposal publication date: December 14, 2001

For further information, please call: (512) 389-4775