Work Session Item No. 1
Presenter: Carter Smith

Work Session
TPWD Land and Water Resources Conservation and Recreation Plan
August 20, 2014

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 & Wildlife 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 Commission on TPWD’s recent progress in achieving the Plan’s goals, objectives and deliverables.

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

Work Session Item No. 2
Presenter: Mike Jensen

Briefing
Financial Overview
August 20, 2014

I. Executive Summary: Staff will present an update of the FY 2016-2017 Legislative Appropriations Request, a summary of the FY 2015 Operating and Capital Budget, and discuss the Commission’s Budget and Investment policies.

II. Discussion:

• Staff will provide an update on the FY 2016-2017 LAR
• Staff will summarize the Commission’s Budget Policy and Investment Policy
• Staff will discuss the FY 2015 Operating and Capital Budget 

III. Recommendation: Staff recommends the Texas Parks and Wildlife Commission adopt the following motion:

"The Executive Director is authorized to expend funds to operate the Texas Parks and Wildlife Department in accordance with the Proposed FY 2015 Operating and Capital Budget (Exhibits A, B). The Commission also approves the Budget Policy (Exhibit C), and the Investment Policy (Exhibit D)."

Work Session Item No. 2
Exhibit A

Work Session Item No. 2
Exhibit B

FY 2015 Operating and Capital Budget by Division/Object of Expense
August 20, 2014

Work Session Item No. 2
Exhibit C

BUDGET POLICY (CP-009)
August 20, 2014

It is the policy of the Texas Parks and Wildlife Commission to authorize the Executive Director to approve and execute or have executed on his behalf, expenditures, budget adjustments and transfers as follows:

1. Adjust the budget to bring unexpended balances forward from prior year approved budgets.
2. Adjust the budget for transfers between budgetary units, major expense categories, or line items.
3. Adjust the budget to increase funds to allow payment of appraisal fees, witness fees, and investigation expenses on land acquisition and construction projects.
4. Approve and/or execute contracts and interagency agreements necessary in the daily operation of the Department.  Revenues derived from interagency agreements may be budgeted and expended.
5. Adjust the budget for appropriated revenues, such as sale of equipment, donations, concessions, escrow, refunds, insurance proceeds, and publications revenue, so long as the expenditures are in agreement with the stated program goals and there will be sufficient cash during the fiscal year.
6. Approve and/or execute construction, repair, or renovation budgets, contracts, interagency agreements, and change orders if necessary to complete a project as approved by the Commission.  Adjust the budget from one Department facility major repair or development project to another or from available revenue to cover increased project costs or changes in scope.
7. Allocate super combo license revenue to the related stamp funds according to the documented methodology and authorize the related transfers of revenue to appropriate accounts.
8. Adjust the budget to cover the costs of lawsuits or settlements if deemed to be in the best interest of Texas Parks and Wildlife.
9. Adjust the budget to place a Department facility into reasonable operation when its condition poses a health or safety hazard or seriously hampers its ability to function.
10. Authorize classification changes anytime during a budgetary year, providing that such changes have been thoroughly justified and funds are available.
11. Increase the number of positions when new facilities are placed into operation and/or new programs are implemented, staying within the authorized FTE limit.
12. Adjust the budget to make capital expenditures for construction projects funded in part with proceeds of bonds issued by the Texas Public Finance Authority.
13. Approve and/or execute the reimbursement of construction project costs with the proceeds of tax-exempt bonds issued by the Texas Public Finance Authority, pursuant to federal Internal Revenue Code guidelines.

The Chair or Vice Chair of the Commission, or a Commissioner designee of the Chair or Vice Chair, is authorized to increase, decrease or otherwise adjust the budget during the fiscal year based on revenue and expenditure information and document those actions as noted below.  Any budget adjustments that exceed a threshold of $250,000, excluding federal and bond funds, require the prior approval of the Chair, Vice Chair, or Commissioner designee through such means as a conference call or memo. Donations or gifts exceeding $500 shall be accepted by the Chair, Vice Chair, or Commissioner designee on a monthly basis, with Commission acknowledgement of the acceptance of the donations at each scheduled Commission meeting.

Subject to notification of the TPW Commission of any changes to previously discussed purposes or uses of funds, the Department is authorized to use dedicated accounts and sub-accounts for purposes consistent with those outlined in relevant statutory provisions or administrative rules as set forth in the Texas Administrative Code.

Work Session Item No. 2
Exhibit D

INVESTMENT POLICY (CP-016)
August 20, 2014

All funds paid to Texas Parks and Wildlife Department (TPWD) pursuant to the Parks and Wildlife Code or allocated to TPWD per  §151.801 of the Texas Tax Code are required by §11.042 of the Parks and Wildlife Code to be deposited in the treasury with two exceptions, the Operation Game Thief Fund and the Texas Park Development Fund.  The Operation Game Thief Fund is held outside the treasury and, as authorized by Parks and Wildlife Code §12.201, is invested according to rules adopted by the Operation Game Thief Committee.  Therefore, the investment of the Operation Game Thief Fund is not governed by this Investment Policy. Although not required, the Texas Park Development Fund is and will continue to be deposited in the treasury and invested by the Comptroller.

Parks and Wildlife Code §11.065 authorizes the commission to adopt rules for investment of the Lifetime License Endowment Account.  The Lifetime License Endowment Account is and will continue to be deposited in the treasury and invested by the Comptroller.

In addition, TPWD has established an account at The Texas Treasury Safekeeping Trust Company, an organization created by the Texas Legislature to invest and safeguard funds for the state and various subdivisions whose sole shareholder and director is the Texas Comptroller of Public Accounts.  TPWD’s account at The Texas Treasury Safekeeping Trust Company is for the purpose of accepting donations of marketable securities which shall be held only until accepted by the Commission.  Donations of marketable securities shall be sold promptly upon acceptance by the Commission and the proceeds shall be deposited into the treasury.

I.    Objectives of TPWD

1. Suitability of the investment to TPWD requirements
2. Preservation and safety of principal
3. Liquidity
4. Marketability
5. Diversification of the portfolio
6. Yield

II.  Policy Guidelines

1. TPWD funds shall be held in the state treasury and invested by the Comptroller under Texas Government Code §404.024.
2. Mitigation funds distributed to TPWD shall be deposited in the state treasury and accounted for separately.
3. Bank accounts authorized by the General Appropriations Act of the 83rd Legislature, Article VI, Rider 3 , and Texas Government Code §403.241-403.252 and §660.025 (petty cash accounts and imprest accounts for the purchase of evidence) should be either interest-bearing accounts or accounts with no fees.  Any interest earned in excess of bank fees shall be deposited in the General Revenue Fund. The establishment of any petty cash or imprest bank accounts must be approved by the Department’s Chief Financial Officer (Signature and Approval Policy OP-03-03).  Continuance of bank accounts is dependent upon timely and accurate record keeping and reporting.

III. Texas Public Funds Investment Act:  Investment Officer Designation and Reporting

1. Pursuant to Texas Government Code §2256.004, the Texas Public Funds Investment Act (PFIA) does not apply to TPWD funds which are deposited into the state treasury and which are managed by the Texas Comptroller of Public Accounts in accordance with Texas Government Code §404.024.  Therefore, TPWD does not presently have any funds on deposit outside the treasury subject to the PFIA.
2. In the event that TPWD funds are deposited outside of the state treasury and become subject to the PFIA, the TPWD Executive Director, or designee, shall identify and designate an Investment Officer.
   1. The designated TPWD Investment Officer, or Officers, shall perform the functions and responsibilities required by the PFIA.
   2. The Investment Officer(s) shall attend investment training at least once each state fiscal biennium from a program recommended by the Texas Higher Education Coordinating Board.
   3. The Investment Officers are required to disclose any personal business or familial relationship with a business organization offering to sell investments to TPWD.
   4. The Investment Officers are required to provide a written copy of the investment policy to every business organization engaging in investment activity with TPWD and must obtain written acknowledgement that the policy was received and reviewed and appropriate procedures and controls are in place to preclude unauthorized transactions.
   5. The Investment Officers will ensure that all TPWD funds outside the state treasury held in bank accounts are insured by FDIC up to the FDIC deposit insurance limit, currently $250,000.  If at any time deposits exceed the FDIC deposit insurance limit in any financial institution, the custodian of the affected account(s) is required to obtain collateralization that meets state requirements to cover the amount exceeding the deposit insurance limit.
   6. Reports of investment transactions for all funds managed under the PFIA shall be prepared within 45 days of the end of each quarter and distributed to members of the Texas Parks and Wildlife Commission, the Executive Director and the Chief Financial Officer as required by § 2256.023.  These quarterly reports shall comply with state requirements for content.
   7. To the extent that the Texas Legislature modifies any provision of the PFIA that is applicable to TPWD’s funds, a report summarizing those legislative changes to the PFIA shall be prepared and distributed to members of the Texas Parks and Wildlife Commission, the Executive Director and the Chief Financial Officer within six months of the end of a regular legislative session.

IV. Review — The Texas Parks and Wildlife Commission shall review this policy at least annually.

Work Session Item No. 3
Presenter: Michael Warriner

Work Session
Threatened and Endangered Nongame Species
Endangered, Threatened, and Protected Native Plants
August 20, 2014

I.       Executive Summary:  This item seeks permission to publish proposed amendments to the department’s lists of federally endangered and state-threatened nongame wildlife and endangered, threatened, and protected plants. The proposed amendments would:

• Add the Austin blind salamander (Eurycea waterlooensis), the  diminutive amphipod (Gammarus hyalleloides), Pecos amphipod (Gammarus pecos), Diamond tryonia (Pseudotryonia adamantina), Phantom springsnail (Pyrgulopsis texana); Phantom tryonia (Tryonia cheatumi), and the Gonzales tryonia (Tryonia circumstriata) to the department’s list of endangered species in response the listing of those  organisms as endangered by the U.S. Fish and Wildlife Service;
• Add the Texas golden gladecress (Leavenworthia texana) to the department’s list of endangered plant species in response the listing of that organism as endangered by the U.S. Fish and Wildlife Service;
• Remove the margay (Felis wiedii) from the state’s list of threatened species;
• Remove the Pima pineapple cactus (Coryphantha scheeri var. robustipina) from the list of threatened plant species: and
• Update taxonomic nomenclature for various organisms.

II.     Discussion:  Under Parks and Wildlife Code, Chapter 68, a species of fish or wildlife indigenous to Texas is endangered if it appears on the United States List of Endangered Native Fish and Wildlife or is on a list of species threatened with statewide extinction as filed by the director of the department with the Texas Secretary of State.  As a matter of policy, the federal list is maintained by rule as a convenience to the public.

Under Parks and Wildlife Code, Chapter 88, a species of plant is endangered, threatened, or protected if it is indigenous to Texas and 1) listed by the federal government as endangered, or 2) designated by the executive director of the Texas Parks and Wildlife Department as endangered, threatened or protected.  At the current time, the department maintains a single list of endangered species that contains only those species indigenous to Texas listed by the federal government as endangered

Work Session Item No. 3
Exhibit A

THREATENED AND ENDANGERED SPECIES RULES
PROPOSAL PREAMBLE

1.  Introduction.

         The Texas Parks and Wildlife Department (the department) proposes amendments to §65.175 and §65.176, concerning Threatened and Endangered Nongame Species.

         The proposed amendment to §65.175, concerning Threatened Species, would update the scientific names of one species of snake and seven species of birds and would remove the margay (Felis wiedii)  from the list of threatened species. The proposed amendment to §65.176, concerning Endangered Species, would add the Austin blind salamander (Eurycea waterlooensis),  the  diminutive amphipod (Gammarus hyalleloides), Pecos amphipod (Gammarus pecos), Diamond tryonia (Pseudotryonia adamantina), Phantom springsnail (Pyrgulopsis texana); Phantom tryonia (Tryonia cheatumi), and the Gonzales tryonia (Tryonia circumstriata)phipod (Gammarus hyalleloides), Pecos amphipod (Gammarus pecos), Diamond tryonia (Pseudotryonia adamantina), Phantom springsnail (Pyrgulopsis texana); Phantom tryonia (Tryonia cheatumi), and the Gonzales tryonia (Tryonia circumstriata) to the list of endangered species.

         From time to time the scientific community reclassifies an organism in light of consensus and/or emerging science.  Scientific reclassification or change in nomenclature of taxa at any level in the taxonomic hierarchy does not, in and of itself, affect the status of a species as endangered, threatened or protected, but the department believes that the common and scientific names of listed organisms should reflect the most current agreement by the scientific community. The scientific names for the gray hawk, interior least tern, sooty tern, Bachman’s sparrow, Arizona Botteri’s sparrow, Texas Botteri’s sparrow, and tropical parula recently have been reclassified; therefore the proposed amendments would reflect those changes. The margay is being removed from the list of threatened species as the last documented occurrence was made in the mid-19th century with no observations since.  Otherwise the species is known only from Texas on the basis of fossilized remains.

         Under Parks and Wildlife Code, Chapter 68, a species is endangered under state law if it is (1) indigenous to Texas and listed by the federal government as endangered; or (2) designated by the executive director of the Texas Parks and Wildlife Department as “threatened with statewide extinction.” Tex. Parks & Wild. Code §68.002.  At the current time, the department maintains a single list of endangered species that contains only those species indigenous to Texas listed by the federal government as endangered. The only species considered as “threatened with statewide extinction” under state law are those species listed by the federal government. The Austin blind salamander was listed as endangered by the U.S. Fish and Wildlife Service on September 19, 2013 and was inadvertently not added to the state endangered species list at the time. Similarly, the diminutive amphipod (Gammarus hyalleloides), the Pecos amphipod (Gammarus pecos), the Diamond tryonia (Pseudotryonia adamantina), Phantom tryonia (Tryonia cheatumi), Phantom springsnail (Pyrgulopsis texana), Gonzales tryonia (Tryonia circumstriata) were listed on July 9, 2013. The proposed amendment rectifies the oversights.

         Under Chapter 68, the department is not required to list federally endangered species by rule; however, whenever the federal government modifies the list of endangered species, the executive director is required to file an order with the secretary of state regarding the modification. Similarly, the executive director may amend the list of species threatened with statewide extinction by filing an order with the secretary of state, but must provide notice of intent to file such an order at least 60 days prior to filing the order. Tex. Parks & Wild. Code §68.004.  This rulemaking constitutes the department’s notice of intent to modify the endangered species list which also serves as the list of species threatened with statewide extinction, as required under Chapter 68.

2. Fiscal Note.

         John Davis, Wildlife Diversity Program Director, has determined that for each of the first five years the amendments as proposed are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules.

3. Public Benefit/Cost Note.

         Mr. Davis also has determined that for each of the first five years the rules as proposed are in effect:

         (A) The public benefit anticipated as a result of enforcing or administering the rules as proposed will be elimination of confusion between state and federal lists of endangered species, the protection of rare species, the opportunity for the public to enjoy the regulated use of recovered species, and regulations that are accurate and informative.

         (B) There will be no adverse economic impact on persons required to comply with the rules as proposed.

         (C) Under the provisions of Government Code, Chapter 2006, a state agency must prepare an economic impact statement and a regulatory flexibility analysis for a rule that may have an adverse economic effect affect on small businesses and micro-businesses. As required by Government Code, §2006.002(g), the Office of the Attorney General has prepared guidelines to assist state agencies in determining a proposed rule’s potential adverse economic impact on small businesses. Those guidelines state that an agency need only consider a proposed rule’s “direct adverse economic impacts” to small businesses and micro-businesses to determine if any further analysis is required. For that purpose, the department considers “direct economic impact” to mean a requirement that would directly impose recordkeeping or reporting requirements; impose taxes or fees; result in lost sales or profits; adversely affect market competition; or require the purchase or modification of equipment or services. Since the listing of species as “threatened with statewide extinction” merely reiterates the list of species listed as endangered by federal regulation, the department has determined that there will be no adverse economic impacts on small businesses or microbusinesses as a result of the proposed amendments. Accordingly, the department has not prepared a regulatory flexibility analysis under Government Code, Chapter 2006.

         (C)  The department has not drafted a local employment impact statement under the Administrative Procedures Act, §2001.022, as the agency has determined that the rules as proposed will not impact local economies.

         (D)  The department has determined that Government Code, §2001.0225 (Regulatory Analysis of Major Environmental Rules), does not apply to the proposed rules.

         (E) The department has determined that there will not be a taking of private real property, as defined by Government Code, Chapter 2007, as a result of the proposed rules.

4. Request for Public Comment.

Work Session Item No. 3
Exhibit B

ENDANGERED, THREATENED, AND PROTECTED NATIVE PLANTS
PROPOSAL PREAMBLE

1.  Introduction.

         The Texas Parks and Wildlife Department (the department) proposes an amendment to §69.8, concerning Endangered and Threatened Plants. The proposed amendment would add one species to the list of endangered species of plants, remove one species from the list of threatened species of plants, and update the scientific names of three species of plants.

         Under Parks and Wildlife Code, Chapter 88, a species of plant is endangered, threatened, or protected if it is indigenous to Texas and (1) listed by the federal government as endangered, or (2) designated by the executive director of the Texas Parks and Wildlife Department as endangered, threatened or protected.  At the current time, the department maintains a single list of endangered plants that contains only those plants indigenous to Texas listed by the federal government as endangered. The Texas golden gladecress (Leavenworthia texana) was listed as endangered by the U.S. Fish and Wildlife Service on October 11, 2013 and was inadvertently not added to the state endangered list at the time. The proposed amendment rectifies that oversight.

         Under Chapter 88, the department is not required to list federally endangered plants by rule; however, whenever the federal government modifies the list of endangered plants, the executive director is required to file an order with the secretary of state regarding the modification. Similarly, the executive director may amend the list of endangered, threatened, and protected species by filing an order with the secretary of state, but must provide notice of intent to file such an order at least 60 days prior to filing the order. This rulemaking constitutes the department’s notice of intent to modify the list of endangered, threatened, and protected native plants.

         The proposed amendment also would remove the Pima pineapple cactus (Coryphantha scheeri var. robustipina) from the threatened species list because there is no evidence that the species occurs in Texas.

         From time to time the scientific community reclassifies an organism in light of consensus and/or emerging science.  Scientific reclassification or change in nomenclature of taxa at any level in the taxonomic hierarchy does not, in and of itself, affect the status of a species as endangered, threatened or protected, but the department believes that the common and scientific names of listed organisms should reflect the most current agreement by the scientific community. The scientific names for the Davis’ green pitaya, white bladderpod, and Zapata bladderpod recently have been reclassified; therefore the proposed amendment would reflect those changes.

         The proposed amendment also eliminates the tabular format of the lists of endangered and threatened plants and simply lists the species.

2. Fiscal Note.

         John Davis, Wildlife Diversity Program Director, has determined that for each of the first five years the amendment as proposed is in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rule.

3. Public Benefit/Cost Note.

         Mr. Davis also has determined that for each of the first five years the rule as proposed is in effect:

         (A) The public benefit anticipated as a result of enforcing or administering the rule as proposed will be the elimination of confusion between state and federal lists of endangered species, protection of rare species, the opportunity for the public to enjoy the regulated use of recovered species, and regulations that are accurate and informative.

(B) There will be no adverse economic impact on persons required to comply with the rule as proposed.

         (C) Under the provisions of Government Code, Chapter 2006, a state agency must prepare an economic impact statement and a regulatory flexibility analysis for a rule that may have an adverse economic effect on small businesses and micro-businesses. As required by Government Code, §2006.002(g), the Office of the Attorney General has prepared guidelines to assist state agencies in determining a proposed rule’s potential adverse economic impact on small businesses. Those guidelines state that an agency need only consider a proposed rule’s “direct adverse economic impacts” to small businesses and micro-businesses to determine if any further analysis is required. For that purpose, the department considers “direct economic impact” to mean a requirement that would directly impose recordkeeping or reporting requirements; impose taxes or fees; result in lost sales or profits; adversely affect market competition; or require the purchase or modification of equipment or services. Since the listing of species as “threatened with statewide extinction” merely reiterates the list of species listed as endangered by federal regulation, the department has determined that there will be no adverse economic impacts on small businesses or microbusinesses as a result of the proposed amendment. Accordingly, the department has not prepared a regulatory flexibility analysis under Government Code, Chapter 2006.

         (C)  The department has not drafted a local employment impact statement under the Administrative Procedures Act, §2001.022, as the agency has determined that the rule as proposed will not impact local economies.

         (D)  The department has determined that Government Code, §2001.0225 (Regulatory Analysis of Major Environmental Rules), does not apply to the proposed rule.

         (E) The department has determined that there will not be a taking of private real property, as defined by Government Code, Chapter 2007, as a result of the proposed rule.

4. Request for Public Comment.

Work Session Item No. 5
Presenter: Ted Hollingsworth

Work Session
Acceptance of 10,635 Acre Land Donation
Creation of 14,037-Acre Yoakum Dunes Wildlife Management Area
Cochran, Terry and Yoakum Counties
August 20, 2014

I. Executive Summary: Staff of Texas Parks and Wildlife Department (TPWD) has worked with The Nature Conservancy of Texas (TNC) to acquire land in Cochran, Terry and Yoakum Counties for the establishment of a refuge for the Lesser Prairie Chicken (LPC) and other rolling plains wildlife.

II. Discussion: In 2007, using pass-through Pittman-Robertson grant funds, TNC began purchasing land that would become the Yoakum Dunes Preserve. The primary impetus for establishment of this preserve is conservation of the LPC. The historic shinnery oak/midgrass prairie habitat required by the LPC in Texas has been drastically fragmented by agriculture, oil and gas development, and other land uses throughout the range of the LPC. Habitat fragmentation, coupled with continued widespread drought since 2011 has negatively impacted LPC populations across much of the species’ range. As a result, the U.S. Fish and Wildlife Service placed the LPC on the Threatened Species list in May, 2014. In addition to the LPC, this habitat is important for a wide range of indigenous wildlife such as Texas horned lizards, quail and mule deer.

As of this date, TNC has acquired 10,635 acres of land in Cochran, Terry and Yoakum Counties. TPWD has acquired (2) tracts totaling 3,402 acres contiguous with the TNC holdings. TPWD also has an additional 1,620 acquisition pending, authorized by the TPW Commission in November, 2013. TNC is willing to transfer ownership on its holdings at Yoakum Dunes to TPWD for the purpose of establishing the Yoakum Dunes Wildlife Management Area.

Staff requests permission to begin the public notice and input process.

Work Session Item No. 5
Exhibit A

Location Map for the Yoakum Dunes Preserve in
Cochran, Terry and Yoakum Counties

Work Session Item No. 5
Exhibit B

Vicinity Map for Yoakum Dunes Preserve 40 Miles Southwest of Lubbock

Work Session Item No. 5
Exhibit C

Site Map for the Proposed Yoakum Dunes Wildlife Management Area

Work Session Item No. 8
Presenter: Ted Hollingsworth

Work Session
Disposition of Land – Harrison County
1 acre at Caddo Lake State Park
August 20, 2014

WITHDRAWN

Work Session Item No. 9
Presenter: Kent White

Work Session
Survey of Employee Engagement Results
August 20, 2014

I. Executive Summary: Staff will present information to the Texas Parks and Wildlife Commission on the results of the Survey of Employee Engagement that Texas Parks and Wildlife employees completed in February 2014.

II. Discussion: Staff will present and overview of both the survey response rate and the results.  The Survey results were very good.  The information will cover the results as well as what is being done to address any areas identified as needing improvement.