January 2021 Committee on School Finance/Permanent School Fund Item 4

Adoption of Review of 19 TAC Chapter 30, Administration, Subchapter B, State Board of Education: Purchasing and Contracts
(Adoption of Review)

January 29, 2021

COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND: ACTION
STATE BOARD OF EDUCATION: 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 adoption of 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 TGC 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.

PREVIOUS BOARD ACTION: The review of 19 TAC Chapter 30, Subchapter B, was presented to the Committee on School Finance/Permanent School Fund for discussion at the November 2020 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.

Texas Education Agency (TEA) staff do not anticipate presenting any changes to 19 TAC Chapter 30, Subchapter B, at this time.

PUBLIC COMMENTS:  The TEA filed the proposed review of 19 TAC Chapter 30, Subchapter B, with the Texas Register following the November 2020 SBOE meeting. The public comment period on the proposed review began December 18, 2020, and ended January 22, 2021. At the time this item was prepared, no comments had been received regarding this review. Any public comments received will be provided to the SBOE during the January 2021 meeting. The SBOE will take registered oral and written comments on the proposed review at the committee meeting in January 2021 in accordance with the SBOE board operating policies and procedures.

MOTION TO BE CONSIDERED: The State Board of Education:

Adopt the review of 19 TAC Chapter 30, Administration, Subchapter B, State Board of Education: Purchasing and Contracts.

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