November 2016 Committee on School Finance Permanent School Fund Item 3
Review of 19 TAC Chapter 30, Administration,
Subchapter B, State Board of Education: Purchasing and Contracts
November 17, 2016
COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND: DISCUSSION
STATE BOARD OF EDUCATION: NO ACTION
SUMMARY: Texas Government Code, §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 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 Texas Government Code, §2001.039. The statutory authority for 19 TAC Chapter 30, Subchapter B, is Texas Government Code, §§2161.003, 2155.076, and 2260.052.
Texas Government Code, §2001.039, requires a state agency to review and consider for readoption each of its rules.
Texas Government Code, §2161.003, requires the SBOE to adopt the HUB rules of the state as its own rules.
Texas Government Code, §2155.076, requires that each state agency by rule develop and adopt protest procedures for resolving vendor protests relating to purchasing issues.
Texas Government Code, §2260.052, requires each unit of state government with rulemaking authority to develop rules to govern the negotiation and mediation of a claim.
BOARD RESPONSE: This item is presented for review and comment.
PREVIOUS BOARD ACTION: The SBOE last adopted the review of 19 TAC Chapter 30, Subchapter B, in January 2013, finding that the reasons for initially adopting the rules continued to exist.
FUTURE ACTION EXPECTED: The review of 19 TAC Chapter 30, Subchapter B, will be presented to the SBOE for adoption at the January/February 2017 board meeting.
BACKGROUND INFORMATION AND SIGNIFICANT ISSUES: 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 Texas Government Code, §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.
Texas Government Code, §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, Texas Government Code, §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. The rule applies to contracts in the areas of textbooks and the Permanent School Fund. No amendments have been made to the rule since its initial adoption.
ANTICIPATED REVISIONS TO RULES: No changes to the rules in 19 TAC Chapter 30, Subchapter B, are anticipated.
RULE REVIEW: The TEA plans to file the notice of proposed review of 19 TAC Chapter 30, Administration, Subchapter B, State Board of Education: Purchasing and Contracts, with the Texas Register following the November 2016 SBOE meeting. The TEA will accept comments as to whether reasons for adopting 19 TAC Chapter 30, Subchapter B, continue to exist. The official comment period will begin with publication of the notice of proposed review of 19 TAC Chapter 30, Subchapter B, in the Texas Register.
The filing of the notice of proposed review soliciting comments as to whether the reason for adoption continues to exist would not preclude any amendments that may be proposed at different dates through a separate rulemaking process.
FISCAL IMPACT: None.
PUBLIC AND STUDENT BENEFIT: The rules in 19 TAC Chapter 30, Subchapter B, define the SBOE's policy for implementing the HUB program and the procedure for interested persons to protest, appeal, and mediate any contract awarded by the SBOE, as required by statute.
PROCEDURAL AND REPORTING IMPLICATIONS: None.
LOCALLY MAINTAINED PAPERWORK REQUIREMENTS: None.
PUBLIC COMMENTS: None.
ALTERNATIVES: None.
OTHER COMMENTS AND RELATED ISSUES: The review of 19 TAC Chapter 30, Administration, Subchapter A, State Board of Education: General Provisions, is presented as a separate item in this agenda for discussion by the Committee on School Initiatives.
Staff Members Responsible:
Shirley Beaulieu, Associate Commissioner
Finance / Chief Financial Officer
Norma Barrera, Director
Purchasing and Contracts
Attachments:
I. Statutory Citations (PDF, 22KB)
II. Text of 19 TAC Chapter 30, Administration, Subchapter B, State Board of Education: Purchasing and Contracts (PDF, 24KB)