TITLE 1.ADMINISTRATION

Part 4. OFFICE OF THE SECRETARY OF STATE

Chapter 81. ELECTIONS

Subchapter L. ELECTRONIC STORAGE MEDIUM STANDARDS

1 TAC §81.412

The Office of the Secretary of State, Elections Division, adopts new §81.412, concerning the standards an optical disk or other electronic storage medium must meet to enable voter registrars to record voter registration applications and other documentation in that storage medium. Section 81.412 was published in the March 15, 2002 issue of the Texas Register (27 TexReg 1953).

The new §81.412 replaces §81.88, which is repealed. The new rule contains wording that will clarify a reference to the rules of the Texas State Library and Archives Commission

No public comments were submitted concerning the new rule.

The rule is adopted pursuant to the Election Code, Chapter 31, Subchapter A, §31.003, which provides the Secretary of State authority to promulgate rules to obtain uniformity in the interpretation and application of the Code.

The Election Code, Chapter 13, subchapter D, §13.104 is affected by this proposed rule.

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 April 19, 2002.

TRD-200202430

David Roberts

General Counsel

Office of the Secretary of State

Effective date: May 9, 2002

Proposal publication date: March 15, 2002

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


Part 5. TEXAS BUILDING AND PROCUREMENT COMMISSION

Chapter 111. EXECUTIVE ADMINISTRATION DIVISION

Subchapter B. HISTORICALLY UNDERUTILIZED BUSINESS PROGRAM

1 TAC §§111.14, 111.17, 111.28

The Texas Building and Procurement Commission adopts amendments to Title 1, T.A.C., Chapter 111, Subchapter B - Historically Underutilized Business Program - §111.14, relating to subcontracts; §111.17, relating to the Certification Process; and §111.28 relating to the Mentor Protege Program. Sections 111.14 and 111.17 are adopted without changes to the proposed text that was published in the March 15, 2002, issue of the Texas Register (27 TexReg 1954) and the text will not be republished. Section 111.28 is adopted with changes to the proposed text in (27 TexReg 1954) and will be published.

The amendments are adopted due to the enactment of Senate Bill 311, Article 13, 77th Legislative Session (2001), which amended the statutory language of §§2161.061 and 2161.253,Texas Government Code. The amended statutory language found in §13.01, SB 311 relates to the Commission's approval of local governments or nonprofit organizations certification programs for businesses that substantially fall under the same definition for a Historically Underutilized Business found in §2161.001, Texas Government Code. Amended statutory language in §13.02, SB 311 determines that a contractor has made a good faith effort if a contractor participates in a Mentor Protege Program and submits a protege as a subcontractor in the contractor's historically underutilized business subcontracting plan.

Language has been added to the second sentence in §111.28(h) to clarify that §111.28 only applies to contracts which require a HUB subcontracting plan ($100,000 or more), and not all contracts. The added language reads "which requires a HUB subcontracting plan" inserted between the words "agency" and "and the Mentor Protege Agreement . . ." In addition, a typo found in §111.14(b)(4) has been corrected to read "good faith effort" instead of "good faith efforts".

The amendments add language in Title 1, T.A.C., Chapter 111, Subchapter B, that is compliant with Article 13, Senate Bill 311, 77th Legislative Section (2001) relating to the Historically Underutilized Business Certification Program and the Mentor Protege Program.

The following entity furnished written comments on the proposed amendments: The Texas Lottery Commission

The Texas Lottery Commission commented that certain language in §111.28(h) relating to "contractor's/vendor's use of HUB proteges in developing and submitting their HUB Subcontracting Plans " is specifically related to §111.14(c) and should be moved to that section. The Lottery Commission further recommended that certain language in §111.28(k) that "outlines specific requirements that a contractor/vendor must adhere to in order to use a HUB Protege as a subcontractor" be moved to §111.14(b)(4) " in order to clarify that approved Mentor Protege Agreements are valid for all state agencies in determining the contractor/vendor's good faith efforts when subcontracting is required."

It was also recommended that language be added to §111.28(l) to clarify "how the registered list of approved mentors and proteges would be updated by the TBPC if agreements were terminated".

The Texas Building and Procurement Commission (TBPC) has fully considered the comments made by the Texas Lottery Commission and disagrees. The TBPC finds that relocating language in §§111.14 and 111.28 would not further add to or clarify the proposed language.

The TBPC also disagrees that language in §111.28(l) requires further clarification as to how the registered list of approved mentors and proteges is updated when Mentor Protege agreements are terminated. §111.28(l) indicates that the TBPC shall "maintain and make available to state agencies all registered Mentor Protege Agreements". Sponsoring agencies are required to report the termination of an existing Mentor Protege Agreement that has been registered with the TBPC. Therefore, maintenance of the registered Mentored Protege Agreements list would include tracking and updating information on terminated Mentor Protege Agreements.

The amendments are proposed under the authority of the Texas Government Code, Title 10, Subtitle D, §§2152.003, 2161.002, 2161.061, and 2161.253, which provide the Texas Building and Procurement Commission with the authority to promulgate rules necessary to implement the sections.

§111.28.Mentor Protege Program.

(a) In accordance with the Texas Government Code, Section 2161.065, the commission shall design a Mentor Protege Program to foster long-term relationships between contractors/vendors and Historically Underutilized Businesses (HUBs) and to increase the ability of HUBs to contract with the state or to receive subcontracts under a state contract. The objective of the Mentor Protege Program is to provide professional guidance and support to the protege to facilitate their development and growth. All participation is voluntary and program features should remain flexible so as to maximize participation. Each state agency with a biennial appropriation that exceeds $10 million shall implement a Mentor Protege Program.

(b) In efforts to design a Mentor Protege Program, each agency, because of its unique mission and resources, is encouraged to implement a Mentor Protege Program that considers;

(1) the needs of protege businesses requesting to be mentored;

(2) the availability of mentors who possess unique skills, talents, and experience related to the mission of the agency's Program; and

(3) the agency's staff and resources.

(c) Agencies may elect to implement Mentor Protege Programs individually or cooperatively with other agencies, and/or other public entities and private organizations, with skills, resources and experience in Mentor Protege Programs. Agencies are encouraged to implement a Mentor Protege Program to address the needs of its protege businesses in the following critical areas of the state's procurements:

(1) construction,

(2) commodities, and/or

(3) services.

(d) State agencies may consider, but are not limited to, the following factors in developing their Mentor Protege Program:

(1) Develop and implement internal procedures, including an application process, regarding the Mentor Protege Program which identifies the eligibility criteria and the selection criteria for mentors and potential HUB protege businesses;

(2) Recruit contractor/vendor mentors and Proteges to voluntarily participate in the Program;

(3) Establish a Mentor Protege Program objective identifying both the roles and expectations of the agency, mentor and the Protege;

(4) Monitor the progress of the mentor protege relationship;

(5) Identify key agency resources including senior managers and procurement personnel to assist with the implementation of the Program; and

(6) Encourage partnerships with local governmental and nonprofit entities to implement a community based Mentor Protege Program.

(e) An agency's Mentor Protege Program must include mentor eligibility and selection criteria. In determining the eligibility and selection of a mentor, state agencies may consider the following criteria:

(1) whether the mentor is a registered bidder on the commission's Centralized Master Bidders List (CMBL);

(2) whether the mentor has extensive work experience and can provide developmental guidance in areas that meet the needs of the Protege, including but not limited to, business, financial, and personnel management; technical matters such as production, inventory control and quality assurance; marketing; insurance; equipment and facilities; and/or other related resources;

(3) whether the mentor is in "good standing" with the State of Texas and is not in violation of any state statutes, rules or governing policies;

(4) whether the mentor has mentoring experience; and

(5) whether the mentor has a successful past work history with the agency.

(f) An agency's Mentor Protege Program must include protege eligibility and selection criteria. In determining the eligibility and selection of HUB Proteges, state agencies may use the following criteria:

(1) whether the protege is eligible and willing to become certified as a HUB;

(2) whether the protege's business has been operational for at least one year;

(3) whether the protege is willing to participate with a mentoring firm and will identify the type of guidance that is needed for its development;

(4) whether the protege is in "good standing" with the State of Texas and is not in violation of any state statutes, rules or governing policies; and

(5) whether the protege is involved in a mentoring relationship with another contractor/vendor.

(g) The mentor and the protege should agree on the nature of their involvement under the agency's mentor/protege initiative. Each agency will monitor the process of the relationship. The mentor and protege relationship should be reduced to writing and that agreement may include, but is not limited to, the following:

(1) identification of the developmental areas in which the protege needs guidance ;

(2) the time period which the developmental guidance will be provided by the mentor;

(3) name, address, phone and fax numbers, and the points of contact that will oversee the agreement of the mentor and Protege;

(4) procedure for a mentor firm to notify the protege in advance if it intends to voluntarily withdraw from the program or terminate the mentor protege relationship;

(5) procedure for a protege firm to notify the mentor in advance if it intends to terminate the mentor protege relationship; and

(6) a mutually agreed upon timeline to report the progress of the mentor protege relationship to the state agency.

(h) The protege must maintain its HUB certification status for the duration of the agreement. If a contractor/vendor has been awarded a contract with a state agency, which requires a HUB subcontracting plan, and the Mentor Protege Agreement is terminated, or the Protege's HUB certification expires, the contractor/vendor must either

(1) enter into a new agreement with a certified HUB Protege, or

(2) comply with the requirements of this title relating to developing and submitting a HUB subcontracting plan.

(i) Each agency must notify its mentors and Proteges that participation is voluntary. The notice must include written documentation that participation in the agency's Mentor Protege Program is neither a guarantee for a contract opportunity nor a promise of business; but the Program's intent is to foster positive long-term business relationships.

(j) State agencies may demonstrate their good faith under this section by submitting a supplemental letter with documentation to the commission with their HUB Report or legislative appropriations request identifying the progress and testimonials of mentors and Proteges that participate in the agency's Program. In accordance with §111.26 of this title (relating to HUB Coordinator Responsibilities) the agency's HUB Coordinator shall facilitate compliance by its agency.

(k) Each state agency that sponsors a Mentor Protege Program must report that information to the commission upon completion of a signed agreement by both parties. Information regarding the Mentor Protege Agreement shall be reported to the commission in a form prescribed by the commission within 21 calendar days after the agreement has been signed. The commission will register that agreement on the approved list of mentors and Proteges. Approved Mentor Protege Agreements are valid for all state agencies in determining good faith effort for the particular area of subcontracting to be performed by the Protege as identified in the HUB subcontracting plan.

(l) The commission shall maintain and make available to state agencies all registered Mentor Protege Agreements. The sponsoring agency shall monitor and report the termination of an existing Mentor Protege Agreement that has been registered with the commission within 21 calendar days.

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 April 18, 2002.

TRD-200202413

Juliet King

Legal Counsel

Texas Building and Procurement Commission

Effective date: May 8, 2002

Proposal publication date: March 15, 2002

For further information, please call: (512) 463-3960


Chapter 113. CENTRAL PURCHASING DIVISION

Subchapter A. PURCHASING

1 TAC §113.21

The Texas Building and Procurement Commission adopts new Title 1, T.A.C., §113.21, concerning Reverse Auction without changes to the proposed text published in the March 15, 2002, issue of the Texas Register (27 TexReg 1956). The text of the new rule will not be republished.

The new §113.21 is adopted in accordance with Texas Government Code, §2155.062 (amended by Senate Bill 221 and §7.01, Senate Bill 311, (77th Legislature, 2001) which added the reverse auction procedure to the Commission's purchasing methods.

Internet real time reverse auction will allow for continuous bids in a specified period of time until the lowest bid is reached. It is anticipated that the new Reverse Auction rule will reduce costs in purchasing.

No comments have been received concerning the adoption of new Title 1, T.A.C., §113.21.

The new rule is adopted under the authority of the Texas Government Code, Title 10, Subtitle D, §§2152.003 and 2155.062 which provides the Texas Building and Procurement Commission with the authority to promulgate rules necessary to implement the sections.

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 April 18, 2002.

TRD-200202414

Juliet King

Legal Counsel

Texas Building and Procurement Commission

Effective date: May 8, 2002

Proposal publication date: March 15, 2002

For further information, please call: (512) 463-3960


Chapter 126. SURPLUS AND SALVAGE PROPERTY PROGRAMS

Subchapter A. STATE SURPLUS AND SALVAGE PROPERTY

1 TAC §§126.1 - 126.5

The Texas Building and Procurement Commission adopts the repeal of old Title 1, T.A.C., Chapter 126, Subchapter A, §§126.1 - 126.5 concerning the State Surplus and Salvage Property. The repealed rules are adopted without changes to the proposed text that was published in the March 15, 2002, issue of the Texas Register (27 TexReg 1956) and the text will not be republished. The adoption of the repeal of old Title 1, T.A.C., Chapter 126 is being published simultaneously with the adoption of new Title 1, T.A.C., Chapter 126 in this publication of the Texas Register .

The adopted repeal of old Title 1, T.A.C., Chapter 126 will allow for the adoption of new and more efficient rules that are compliant with new requirements pursuant to Texas Government Code, Chapter 126, Subchapter A, B, C, and D (amended by Article 11, S.B. 311, H.B. 834, H.B. 936 and S.B. 1438, 77th Leg.).

The adopted repeal of old Title 1, T.A.C., Chapter 126 will delete obsolete language and requirements.

No comments have been received concerning the repeal of old Title 1, T.A.C., Chapter 126.

The repeal of old Title 1, T.A.C., Chapter 126, §§126.1 - 126.5 is being adopted under the authority of the Texas Government Code, §§2152.003 and 2175.001 which provides the Texas Building and Procurement Commission with the authority to promulgate rules necessary to implement the sections.

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 April 18, 2002.

TRD-200202415

Juliet U. King

Legal Counsel

Texas Building and Procurement Commission

Effective date: May 8, 2002

Proposal publication date: March 15, 2002

For further information, please call: (512) 463-3960


1 TAC §§126.1 - 126.6

The Texas Building and Procurement Commission adopts new Title 1, T.A.C., Chapter 126, Subchapter A, §§126.1 - 126.6 concerning the State Surplus and Salvage Property. The new rules are adopted without changes to the proposed text that was published in the March 15, 2002 issue of the Texas Register (27 TexReg 1957) and the text will not be republished. The adoption of these new rules is being published simultaneously with the adoption of the repeal of old Title 1, T.A.C., Chapter 126 in this publication of the Texas Register .

The new rules are adopted in accordance with new requirements pursuant to the Texas Government Code, Chapter 2175, Subchapters A, B, C, and D (amended by Article 11, S.B. 311, H.B. 834, H.B. 936 and S.B. 1438, 77th Leg.). The new rules establish the criteria for determining that a delegation of authority to a state agency results in cost savings to the state; amend the definition for "assistance organization" to include nonprofit organizations; establish guidelines for determining the method of sale (competitive bid, auction or direct sale) most advantageous to the state; and allow for direct sale to the public in order to maximize the resale value of surplus or salvage property to the state.

The new rules will replace obsolete language found in the adopted repeal of old Title 1, T.A.C., Chapter 126 - State Surplus and Salvage Property. It is anticipated that the new rules will increase cost savings to the state and develop guidelines for the more efficient disposal of surplus and salvage property.

No comments have been received concerning the adoption of new Title 1, T.A.C., Chapter 126, §§126.1 - 126.6.

The new rules are adopted under the authority of the Texas Government Code, §§2152.003, 2175.001, 2175.061, 2175.065, 2175.129, and 2175.130 which provides the Texas Building and Procurement Commission with the authority to promulgate rules necessary to implement the sections.

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 April 18, 2002.

TRD-200202412

Juliet U. King

Legal Counsel

Texas Building and Procurement Commission

Effective date: May 8, 2002

Proposal publication date: March 15, 2002

For further information, please call: (512) 463-3960