Finance Committee

Wednesday, 9:00 a.m.
November 2, 2011

Texas Parks and Wildlife Department
Commission Hearing Room
4200 Smith School Road, Austin, TX  78744

Commissioner Antonio Falcon, M.D., Committee Chair
Gene McCarty, Committee Liaison

Approval of Previous Meeting Minutes

  1. Update on TPWD Progress in Implementing the TPWD Land and Water Resources Conservation and Recreation Plan
    Staff:  Carter Smith
  2. Financial Overview
    • FY 2011 Financial Update
    Staff:  Mike Jensen
  3. Implementation of Legislation during the 82nd Texas Legislative Session–House Bill 1300 Relating to the Proposed Rules for Official Corporate Partners–Request Permission to Publish Rules in the Texas Register
    Staff:  Darcy Bontempo
  4. Implementation of Legislation during the 82nd Texas Legislative Session–House Bill 3722 Relating to Fees for the Boater Education Program of the Texas Parks and Wildlife Department–Recommended Adoption of Proposed Changes (Action Item No. 7)
    Staff:  Nancy Herron, Tim Spice

Committee Agenda Item No. 1
Presenter:  Carter Smith

Finance Committee
Update on TPWD Progress in Implementing the
TPWD Land and Water Resources Conservation and Recreation Plan
November 2, 2011

I.      Executive Summary:  Executive Director Carter Smith will briefly update the Commission on the status of the agency’s efforts to implement the Land and Water Resources Conservation and Recreation Plan (the “Plan”).

II.     Discussion:  In 2001, the 77th Texas Legislature directed that the Texas Parks and Wildlife Department (TPWD) develop a Land and Water Resources Conservation and Recreation Plan (Tex. Park & Wild. Code §11.104).  In 2002, the Texas Parks and Wildlife Commission (the Commission) adopted the first Plan.  A revised Plan was adopted by the Commission in January 2005.  In November 2009, the Commission approved a new Plan effective January 1, 2010.  The 2010 Plan is available on the TPWD web site.  Executive Director Carter Smith will update the Finance Committee on TPWD’s recent progress in achieving the Plan’s goals, objectives and deliverables as they relate to the Finance Committee.

The Plan consists of the following four goals:

  1. Practice, Encourage and Enable Science-based Stewardship of Natural and Cultural Resources
  2. Increase Access To and Participation In the Outdoors
  3. Educate, Inform and Engage Texas Citizens in Support of Conservation and Recreation
  4. Employ Efficient, Sustainable and Sound Business Practices

Committee Agenda Item No. 2
Presenter:  Mike Jensen

Finance Committee
FY 2011 Financial Overview
November 2, 2011

I.       Executive Summary:  Staff will present a financial overview of the Texas Parks and Wildlife Department (TPWD).

II.      Discussion:


Committee Agenda Item No. 3
Presenter:  Darcy Bontempo

Finance Committee
Implementation of Legislation during the 82nd Texas Legislative Session
House Bill 1300 Relating to the Proposed Rules for Official Corporate Partners
November 2, 2011

I.       Executive Summary:  This item requests permission to publish the proposed rules for the implementation of House Bill 1300 in the Texas Register, as relates to authority to receive additional funding for Texas Parks and Wildlife Department (TPWD) sites and programs through official corporate partnerships, the licensing of the TPWD brand, state park sales by outside entities and commercial advertising in state parks and other state sites under the jurisdiction of the Department.

II.      Discussion:  House Bill 1300 was passed into law during the 82nd Legislature Session.  It grants the Department authority to designate one or more “Official Corporate Partners” (OCP) to work with the Department to raise additional revenue by employing one or more of the following methods:  acceptance of gifts, grants or contributions on behalf of the Department; joint promotional campaigns or other fundraising efforts; licensing the TPWD brand; selling the state park pass and advertising on TPWD state sites.  Revenue raised under this law carries its own authority and must be used to help fund state site operations and maintenance and other priority projects or programs.  In addition, the law grants the Department the authority to contract with any entity it considers appropriate to sell state park passes and license the TPWD brand.  This law does not however limit the Department’s authority to accept other kinds of donations not authorized in this statute.

House Bill 1300 does require the TPW Commission to prohibit inappropriate commercial advertising in state parks and other state sites under the jurisdiction of the Department so as to preserve the integrity of the sites and minimize distractions that may interfere with the enjoyment of the sites by visitors.

Staff will review proposed rules with the Commission and seek approval to publish the proposed rules in the Texas Register.  These rules are intended to guide and govern these activities in a manner that is fair and competitive to outside entities, protects the Department’s integrity and good standing, ensures that the visitor experience will not be compromised, and results in maximum revenue to the Department’s sites, programs and priority projects.

            Attachments — 1

  1. Exhibit A – Proposed Rules

Committee Agenda Item No. 3
Exhibit A

31 Texas Administrative Code
Official Corporate Partner and State Park Pass Rules
Chapter 51, Executive
New Subchapter M
Official Corporate Partners

§51.700. Definitions.

         (a) The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. All other words and terms shall have the meanings assigned by Parks and Wildlife Code, Chapter 11, Subchapter J-1.

                 (1) Department—The Texas Parks and Wildlife Department.

                 (2) Department brands—The department’s trademarks, logos, name, seal, and other intellectual property.

                 (3) Department site (or “site”)—A wildlife management area, state park, state natural area, or state historic site under the jurisdiction of the department, or other property or facility owned or operated by the department.

                 (4) Department-wide Official Corporate Partner (OCP-D) — An Official Corporate Partner whose financial support of the department is intended to be broad in nature and not tied or restricted to a specific program, project or site.

                 (5) License—A written authorization allowing a person or entity to use one or more department brands for the purpose of selling products or services branded with one or more department brands

                 (6)  Local Official Corporate Partner (OCP-L)—An Official Corporate Partner whose financial support of the department is intended to be limited to a specific program, project or site and is not broad in nature.

                 (7) For-profit entity—A corporation, organization, business trust, estate, trust, partnership, association, or any other legal entity, that exists for the purpose of generating profits.

                 (8) Official Corporate Partner (OCP)—A for-profit entity that:

                         (A) is designated as an official corporate partner by the department;

                         (B) works with the department to raise funds for state site operations and maintenance or other priority projects or programs; and

                         (C) is selected as provided in this subchapter.

         (b) Unless clearly identified as being applicable only to an OCP-D and/or OCP-L, the use of the acronym OCP shall apply to both an OCP-D and OCP-L.

§51.701. Designation of OCPs.

         (a) All OCP-Ds shall be selected through a fair and competitive process that takes into consideration the amount of support being offered and the needs of the department.

         (b) OCP-Ls shall be selected through a fair process that takes into consideration the availability of other possible OCP-Ls for the program, project or site, the amount of support being offered and the needs of the site or program.

         (c) An entity shall not be considered an OCP until it has been designated as an OCP by order of the department’s executive director, or designee.

         (d)  The department may select multiple OCP-Ds and/or OCP-Ls.

         (e) The department may define the specific business category within which an OCP is designated.  An OCP will not be designated in a business category regulated by the department.

         (f) The department shall designate each OCP-D within a specific business category and will not select another OCP for the same business category within the term of the OCP-D’s designation.

         (g) The department may designate one or more OCP-Ls within a specific business category for the program, project or site for which the OCP-L is designated.

         (h) The designation of an OCP-L shall be subject to cancellation by the department in the event an OCP-D is designated within the same business category.  The department will provide reasonable advanced written notice to the OCP-L of such cancellation and shall inform all OCP-Ls of the possibility of cancellation under this subsection.

         (i) The department shall establish minimum criteria that must be met by an entity to be considered for designation as an OCP-D.  Such criteria may include, but are not limited to the following:

                 (1) commitment of a minimum amount in cash, goods, and/or services established by the department;

                 (2) a presence in the state that is sufficiently broad for the type of OCP-D designation and the ability of the entity to engage in joint promotional campaigns and/or cooperative ventures utilizing technology and/or systems belonging to the entity;

                 (3) a mission or purpose that does not conflict with the mission of the department; and,

                 (4) other criteria established by the department based on the needs of the department.

         (j) The department may establish criteria, as appropriate, to be met by an entity to be considered for designation as an OCP-L, which may include some or all of the criteria listed in subsection (i).

         (k) The designation of an OCP shall be for a specified period of time.

         (l) The designation of an OCP shall not constitute an endorsement by the department of the OCP or the OCP’s products and/or services.

         (m) The department will not designate an entity as an OCP if the designation would result in a conflict with the department’s regulatory, contractual or other obligations, or would otherwise create the appearance of a conflict of interest.

         (n) Notwithstanding the designation of an entity as an OCP and unless otherwise expressly agreed by the department in writing,

                 (1) the department and an OCP are independent entities and are not agents, partners, joint venture participants or otherwise responsible for the acts, omissions, or conduct of the other party; and,

                 (2) the legal relationship of the department and an OCP shall not be considered a “partnership” and neither the department nor an OCP shall be considered a “partner” of the other as those terms are defined and used in the Business Organizations Code.


 

51.702.  Guidelines

         (a) Each OCP shall enter an agreement with the department regarding the terms, conditions, restrictions, benefits, roles and responsibilities of the department and the OCP and the scope of the OCP designation.

         (b) Among the benefits that may be provided by the department to an OCP-D is the right of the OCP-D to be designated as the “official” OCP-D of the department within a business category and to identify itself as the “Official (specific business category) of Texas Parks and Wildlife” or “Official (specific business category) of the Texas Parks and Wildlife Department.”

         (c) Among the benefits that may be provided by the department to an OCP-L is the right to be designated as the “official” OCP-L for the program, project or site for which the OCP-L is designated or within a business category for the program, project, or site and be allowed to identify itself as the “Official (specific business category) of the (specific program, project or site).”

         (d) An OCP shall maintain and retain all work and other supporting documents pertaining to its designation as the OCP and all work performed pursuant to its designation as an OCP.  Such documents shall be provided or made available, upon request, for purposes of inspecting, monitoring, auditing, or evaluating by the department and any authorized agency of the State of Texas.

         (e) An OCP shall carry out the fiscal, business, legal, and tax responsibilities required and appropriate for an entity of the size and structure as the OCP.

         (f) An OCP’s work with the department must not conflict with the department’s mission and goals.

         (g) An OCP must be authorized to conduct business in the State of Texas and must be in good standing with the State of Texas.

         (h) Any fundraising or programs undertaken by the OCP for the benefit of the department must be approved in advance in writing by the department.

         (i) An OCP shall not subcontract or enter an agreement with another person or entity to carry out the OCP’s functions as an OCP, except as agreed in writing by the department.

         (j) The OCP shall submit funds generated on behalf of or for the benefit of the department as soon as possible and in a manner as determined by the department. During the time such funds are being held by the OCP, the OCP shall manage and account for such funds in accordance with applicable accounting standards.

         (k) All projects undertaken for the department by an OCP-L must be related to and supportive of the department project, program or site for which the OCP-L is designated.

         (l) Nothing in this subchapter shall limit the ability of an OCP to make an unrestricted donation of cash, goods, or services to the department, so long as the donation is accepted by the department in accordance with applicable law and department policy. Such a donation may be for a specific purpose or program.

51.703.  Advertising

         (a) Department funds shall not be used to advertise a product and/or service of the OCP, except as follows:

                 (1) to provide information about the relationship with the OCP and encourage public participation in OCP programs, projects or sites in support of the department’s mission.

                 (2) to provide information about the availability of products and/or services of an OCP that have been created and/or are being made available pursuant to an agreement with the department to support department programs, projects or sites.

                 (3) to offset fulfillment costs or opportunity costs incurred by the department to provide advertising to the OCP in department publications, web sites, at department sites and other department vehicles and outlets.

         (b) The OCP shall not use department brands, except as authorized by written agreement with the department.

         (c) The department may provide to an OCP opportunities to run advertising in department publications, web sites, other media vehicles, and/or at department sites so long as such advertising:

                 (1) has been approved in writing in advance by the department’s executive director or designee;

                 (2) is in the best interest of the department and does not conflict with the department’s mission and goals;

                 (3) if on a department site, preserves the natural and scenic integrity of the site and minimizes distractions that may interfere with the enjoyment of the site by visitors; and

                 (4) is not more prominent than and does not overshadow the role of the department.

         (d) The designation of an OCP as the exclusive OCP for a specific business category shall not limit the department’s ability to accept advertising from potential competitors of the OCP in department publications, web sites and other media, including but not limited to the Texas Parks and Wildlife Magazine.

         (e) The department will not accept any advertisement that does not comply with the requirements of Parks and Wildlife Code, Sections 11.0172 and 11.0173, and Section 51.72 of this Title.

§51.704. Licensing of the Department Brands

         (a) The department may license the use of one or more department brands:

                 (1) as a benefit to an OCP-D; or

                 (2) as means to generate revenue for the department.

         (b) The department will not license a use of department brands that conflicts with the department’s mission and the goals.

         (c) The department shall use a competitive process to award the licensing rights for one or more department’s brands.

         (d) Any licensing or use of the department brands shall be subject to the terms, conditions, restrictions and time frame(s) specified in writing by the department.

         (e) Nothing in this section shall be construed to prohibit the department from authorizing the use of one or more department brands to recognize a person or entity that joins with and/or provides support to the department, including but not limited to an OCP-L, or a sponsor or supporter of a department program, project or site.

         (f) Unless otherwise authorized by this subchapter, private use of department brands is not permitted without a prior written agreement with the department.

         (g) The department may deny the use of department brands when such use is not in the best interest of the department.

Chapter 59, Parks

Subchapter A, Park Entrance and User Fees

§51.705.  Outsourcing the Sale of State Park Passes

         (a) As used in this section, a “state park pass” is pass that allows entry to a state park, state natural area, or state historic site under the jurisdiction of the department.

         (b) At the discretion of the department, following the completion of feasibility and cost-benefit analyses, the department may outsource the sale of state park passes to commercial entities. Prior to outsourcing the sale of state parks passes, the department will determine the form and manner in which awarded commercial entities may issue state park passes.










































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