TITLE 1.ADMINISTRATION

Part 4. OFFICE OF THE SECRETARY OF STATE

Chapter 71. GENERAL POLICIES AND PROCEDURES

Subchapter C. PURCHASING PROCEDURES

1 TAC §71.51

The Office of the Secretary of State adopts new §71.51, concerning historically underutilized businesses, without changes to the proposed text published in the February 15, 2002, Texas Register (27 TexReg 1055).

The rule complies with Texas Government Code, §2161.003, which requires state agencies to adopt the rules of the Building and Procurement Commission, relating to the Historically Underutilized Business (HUB) Certification Program.

New §71.51 adopts by reference the rules of the Building and Procurement Commission, Title 1 Texas Administrative Code, Chapter 111, Subchapter B, §§111.11 - 111.28, relating to the historically underutilized business certification program, and promotes full and equal business opportunity for all businesses in state contracting. The Secretary of State will continue to rely upon the Building and Procurement Commission to determine if a business is certified as a HUB.

The agency received no public comments concerning the rule.

Statutory Authority: Texas Government Code, §2161.003.

The rule implements Texas Government Code, Chapter 2161.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 20, 2002.

TRD-200201749

David N. Roberts

General Counsel

Office of the Secretary of State

Effective date: April 9, 2002

Proposal publication date: February 15, 2002

For further information, please call: (512) 463-5562


1 TAC §71.61

The Office of the Secretary of State adopts new §71.61, concerning procedures for Vendor Protests, without changes to the proposed text published in the February 15, 2002, Texas Register (27 TexReg 1055).

The new rule establishes protest procedures consistent with those of the Building and Procurement Commission. Chapter 2155 of the Government Code directs state agencies to adopt such procedures.

The agency received no comments concerning the rule.

Statutory Authority: Texas Government Code, §2155.076.

This rule implements Texas Government Code, Chapter 2155.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 20, 2002.

TRD-200201750

David N. Roberts

General Counsel

Office of the Secretary of State

Effective date: April 9, 2002

Proposal publication date: February 15, 2002

For further information, please call: (512) 463-5562


Subchapter E. NEGOTIATION AND MEDIATION OF CERTAIN CONTRACT DISPUTES

1 TAC §§71.81, 71.83, 71.85, 71.87, 71.91, 71.93, 71.95, 71.97, 71.99, 71.101, 71.103, 71.105, 71.107, 71.111, 71.113, 71.115, 71.117, 71.119, 71.121, 71.123, 71.125

The Office of the Secretary of State adopts new §§71.81, 71.83, 71.85, 71.87, 71.91, 71.93, 71.95, 71.97, 71.99, 71.101, 71.103, 71.105, 71.107, 71.111, 71.113, 71.115, 71.117, 71.119,71, 121, 71.123, and 71.125 relating to procedures for the negotiation and mediation of certain breach of contract claims asserted by contractors against the State of Texas pursuant to Section 9 of House Bill 826, 76th Legislature, Chapter 68 (1999) (codified at Government Code, Chapter 2260).

The sections are adopted without changes to the proposed text published in the February 15, 2002, Texas Register (27 TexReg 1056).

Government Code § 2260.052(c) requires that units of state government with rulemaking authority adopt rules to establish negotiation and mediation provisions

Section 71.81 states that this Subchapter E governs the negotiation and mediation of claims of breach of contract asserted by a contractor against a unit of state government. Section 71.83 defines terms as they relate to this chapter. Section 71.85 provides that the procedures in Subchapter E are prerequisites to filing suit under Civil Practice and Remedies Code, Chapter 107 and Government Code, Chapter 2260. Section 71.7 advises that the state has not waived sovereign immunity to suit or to liability.

Section 71.91 sets out the requirements and procedures of the notice of claim of breach of contract that contractor must assert. Section 71.93 sets out the requirements and procedures of the counterclaim that the unit of state government must assert. Section 71.95 announces that the parties must negotiate to settle the dispute. Section 71.97 provides a timetable as it relates the negotiations between the contractor and the unit of state government. Section 71.99 describes how the parties may conduct the negotiation. Section 71.101 addresses the parties' settlement approval procedures. Section 71.103 announces the requirements of any resulting settlement agreement. Section 71.105 states how the parties shall handle the costs of negotiations. In the event that the breach of contract claim is not resolved in its entirety. Section 71.107 specifies the process by which a contractor may seek resolution of the dispute by SOAH. Section 71.111 sets the parameters for mediation by a neutral third party of breach of contract claims and counterclaims. Section 71.113 discusses the qualifications, immunities, and duties of a mediator. Section 71.115 pertains to the confidentiality of a mediation and any resulting final settlement agreement. Section 71.117 states how the parties shall handle the costs of mediation. Section 71.119 addresses the parties' settlement approval procedures. Section 71.121 details the handling of any resulting settlement agreement. Section 71.123 states that a final settlement agreement must comply with the provisions of §71.103 of this subchapter. Section 71.125 provides that if mediation does not resolve the dispute the contractor may request that the claim be referred to SOAH in accordance with §71.107 of this subchapter.

The agency received no comments concerning these rules.

Statutory Authority: Government Code, Chapter 2260.052(c).

The new rules implement Texas Government Code, Chapter 2260.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 20, 2002.

TRD-200201751

David N. Roberts

General Counsel

Office of the Secretary of State

Effective date: April 9, 2002

Proposal publication date: February 15, 2002

For further information, please call: (512) 463-5562