November 2020 Committee on School Finance/Permanent School Fund Item 3
Rule Review of 19 TAC Chapter 30, Administration, Subchapter B, State Board of Education: Purchasing and Contracts
November 19, 2020
COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND: DISCUSSION
STATE BOARD OF EDUCATION: NO ACTION
SUMMARY: Texas Government Code (TGC), §2001.039, establishes a four-year rule review cycle for all state agency rules, including State Board of Education (SBOE) rules. This item presents the review of 19 Texas Administrative Code (TAC) Chapter 30, Administration, Subchapter B, State Board of Education: Purchasing and Contracts. The rules in Subchapter B address the historically underutilized business (HUB) program and procedures relating to protest for purchasing issues and dispute resolution, in accordance with Texas Government Code requirements.
STATUTORY AUTHORITY: The statutory authority for the rule review is TGC, §2001.039. The statutory authority for 19 TAC Chapter 30, Subchapter B, is TGC, §§2161.003, 2155.076, and 2260.052.
TGC, §2001.039, requires a state agency to review and consider for readoption each of its rules.
TGC, §2161.003, requires the SBOE to adopt the HUB rules of the state as its own rules.
TGC, §2155.076, requires that each state agency by rule develop and adopt protest procedures for resolving vendor protests relating to purchasing issues.
TGC, §2260.052, requires each unit of state government with rulemaking authority to develop rules to govern the negotiation and mediation of a claim.
The full text of statutory citations can be found in the statutory authority section of this agenda.
FUTURE ACTION EXPECTED: The review of 19 TAC Chapter 30, Subchapter B, will be presented to the SBOE for adoption at the January 2021 board meeting.
BACKGROUND INFORMATION AND JUSTIFICATION: Effective December 5, 2004, the SBOE adopted rules in 19 TAC Chapter 30, Subchapter B, to address the HUB program, protest procedures for purchasing issues, and procedures for dispute resolution, as required by statute.
The TGC, §2161.003, directs each state agency to adopt the state's HUB rules as its own rules. Those rules apply to state agency construction projects and purchases of goods and services paid for with appropriated money. To comply with statute, the SBOE adopted 19 TAC §30.21, Historically Underutilized Business (HUB) Program, effective December 5, 2004. The rule adopts by reference the Texas Building and Procurement Commission (TBPC) rules concerning the HUB program. Effective April 26, 2009, the rule was amended to reflect the transfer of HUB rules from the TBPC to the Comptroller of Public Accounts.
TGC, §2155.076, requires that each state agency by rule develop and adopt protest procedures for resolving vendor protests relating to purchasing issues. Rules are required to be consistent with the Comptroller of Public Accounts' rules and include standards for maintaining documentation about the purchasing process to be used in the event of a protest. In addition, TGC, §2260.052, requires each unit of state government with rulemaking authority to develop rules to govern the negotiation and mediation of a claim. To comply with statute, the SBOE adopted 19 TAC §30.22, Procedures for Protests, Dispute Resolution, and Appeals Relating to Purchasing and Contract Issues, effective December 5, 2004. The rule establishes that any person interested in protesting an award must do so by filing a written formal protest petition and provides the specifications that must be addressed in the protest petition. The rule also specifies the mediation procedures for resolution of a formal protest and sets forth guidelines to appeal a protest determination. No amendments have been made to the rule since its initial adoption.
ANTICIPATED REVISIONS TO RULES: Texas Education Agency (TEA) staff anticipate presenting changes to clarify the rules in 19 TAC Chapter 30, Subchapter B, for first reading and filing authorization at the January 2021 meeting.
PUBLIC COMMENTS: The TEA will file the notice of proposed review of 19 TAC Chapter 30, Subchapter B, with the Texas Register following the November 2020 SBOE meeting. The TEA will accept comments as to whether reasons for adopting 19 TAC Chapter 30, Subchapter B, continue to exist. The public comment period on the proposed rule review begins December 18, 2020, and ends January 22, 2021. The SBOE will take registered oral and written comments on this item at the appropriate committee meeting in January 2021 in accordance with the SBOE operating policies and procedures.
The filing of the notice of proposed review soliciting comments as to whether the reasons for adoption continue to exist would not preclude any amendments that may be proposed at the same time or at different times through a separate rulemaking process.
Staff Members Responsible:
Carla Steffen, Associate Commissioner of Finance/Chief Financial Officer
Jenna Mattingly, Director, Contracts and Purchasing
Attachment:
Text of 19 TAC Chapter 30, Administration, Subchapter B, State Board of Education: Purchasing and Contracts