Nonprofit Partner Rules

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NON-PROFIT PARTNER RULES

PROPOSAL PREAMBLE

1. Introduction.

        The Texas Parks and Wildlife Department proposes an amendment to 31 TAC §51.164, concerning Best Practices (Officers and Directors). The proposed amendment would clearly stipulate that the provisions of subsection (b)(3), which prohibit an employee of the department from serving as a member of a non-profit partner (NP), do not apply to the Texas Parks and Wildlife Mutual Association. The Texas Parks and Wildlife Mutual Association (Association) was founded in 1956 with the mission of providing financial assistance to the families/beneficiaries of deceased members (department employees and their spouses). Members receive no compensation from the Association and serve on a voluntary basis.

        Parks and Wildlife Code authorizes the department to work with nonprofit organizations to carry out the mission of the department. The department has determined that the Association assists the department by providing bereavement benefits to employees who are members, including peace officers commissioned by the department, who are not infrequently in life-threatening situations in the line of duty. Similarly, Government Code, Chapter 2255, requires a state agency to adopt rules regarding the relationship between donors and the agency, including the agency’s employees, if the agency is authorized to accept donations or if "a private organization exists that is designed to further the purposes and duties of the agency." Although the Association’s relationship with the department is not pecuniary, it does exist to assist and support employees of the agency in times of need.

        The amendment is necessary to allow the department to recognize the Association as a NP and explicitly acknowledgment that a department employee may serve as an officer of the Association without affecting the Association’s status as a NP.

2. Fiscal Note.

        Robert Macdonald, Regulations Coordinator, has determined that for each of the first five years that the rule as proposed is in effect, there will be no fiscal implications to state or local governments as a result of administering or enforcing the rule.

3. Public Benefit/Cost Note.

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

        (A) The public benefit anticipated as a result of enforcing or administering the proposed rule will be the facilitation of bereavement support for the beneficiaries of department employees who serve the public.

        There will be no adverse economic effect on persons required to comply with the rule, as the proposed amendment does not affect anyone other than department employees who are members of the Association.

        (B) 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, micro-businesses, or rural communities. 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 and microbusinesses and rural communities. Those guidelines state that an agency need only consider a proposed rule’s direct adverse economic impacts to determine if any further analysis is required. 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.

        The department has determined that the proposed rules would result in no direct economic effect on any small businesses, micro-businesses, or rural community, as the proposed amendments are purely administrative; therefore, neither the economic impact statement nor the regulatory flexibility analysis described in Government Code, Chapter 2006, is required.

        (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.

        (F) In compliance with the requirements of Government Code, §2001.0221, the department has prepared the following Government Growth Impact Statement (GGIS).  The rules as proposed, if adopted, will:

                 (1) neither create nor eliminate a government program;

                (2) not result in an increase or decrease in the number of full-time equivalent employee needs;

                (3) not result in a need for additional General Revenue funding;

                (4) not affect the amount of an existing fee;

                 (5) not create, expand, or repeal an existing regulation;

                 (6) not increase or decrease the number of individuals subject to regulation; and

                 (7) not positively or adversely affect the state’s economy.

4. Request for Public Comment.

        Comments on the proposed rule may be submitted to Robert Macdonald (512) 389-4775, e-mail: robert.macdonald@tpwd.texas.gov. Comments also may be submitted via the department’s website at http://www.tpwd.texas.gov/business/feedback/public_comment/.

5. Statutory Authority.

        The rule is proposed 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.

        The proposed rule affects Parks and Wildlife Code, Chapter 11, Subchapter J.

6. Rule Text.

        §51.164. Best Practices (Officers and Directors).

                 (a) (No change.)

                 (b) In addition to subsection (a) of this section, NPs must comply with the best practices regarding officers and directors as prescribed in this section.

                         (1) – (2) (No change.)

                         (3) NPs shall not elect or designate or otherwise select a department employee as an officer or director, other than as a non-voting uncompensated representative of the department. This paragraph does not apply to the Texas Parks and Wildlife Department Mutual Association.

                         (4) – (5) (No change.)

                         (4) NPs shall hold regular meetings of its Board of Directors.

        This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency’s authority to adopt.

        Issued in Austin, Texas, on