TITLE 1.ADMINISTRATION

Part 3. OFFICE OF THE ATTORNEY GENERAL

Chapter 55. CHILD SUPPORT ENFORCEMENT

Subchapter J. VOLUNTARY PATERNITY ACKNOWLEDGMENT PROCESS

1 TAC §§55.401, 55.402, 55.404, 55.405, 55.407

Office of the Attorney General proposes amendments to 1 TAC §§55.401, 55.402, 55.404, 55.405 and 55.407, concerning voluntary paternity acknowledgment process.

55.401. Changes the reference in Texas Family Code from Subchapter C to Subchapter D. Voluntary Acknowledgment of Paternity.

55.402. Substitutes Bureau of Vital Statistics for state. Change Family Code reference from §151.002 to 160.204.

55.404. Deletes (2) sign it before a witness.

55.405. Describes the process for filing Acknowledgment of Paternity and the Denial of Paternity forms.

55.407. Clarifies the training requirement from the Office of the Attorney General.

Cynthia Bryant, IV-D Director, Child Support Division, has determined that for the first five year period there will be no fiscal implications for state or local government as a result of enforcing or administering the section.

Ms. Bryant also has determined that the proposed amendments will not have an adverse economic effect on small businesses because the amendments to these sections impose no additional burden on anyone. There is no anticipated economic cost to persons who are required to comply with the section as proposed.

The public benefit of the amendments to these sections is to clarify the process of Voluntary Paternity Acknowledgment Process.

Comments may be submitted to Kathy Shafer, Child Support Division, General Counsel section, Office of the Attorney General, (physical address) 5500 East Oltorf, Austin, Texas 78741, or (mailing address) P. O. Box 12017, Austin, Texas 78711-2017, mail code 039, (512) 460-6134.

The amendments are proposed under the September 1, 1999 statutory changes, found in the Texas Family Code, Section 160.302, Subchapter D. Voluntary Acknowledgment of Paternity.

The Code affected by the proposed amendments is Health and Safety Code, Section 192, Record of Acknowledgment of Paternity.

§55.401.Scope.

Fathers and mothers who wish to voluntarily establish paternity for their child may do so through any local child support office of the Office of the Attorney General, Child Support Division; the state Bureau of Vital Statistics; a local birthing hospital or birthing center; or any entity certified by the Office of the Attorney General to provide such services. The Acknowledgment of Paternity must be executed according to the rules contained herein and under the Texas Family Code, Chapter 160, Subchapter [ C ] D, Voluntary Acknowledgment [ or Denial ] of Paternity. Entities that are required by law to provide paternity establishment services and entities that wish voluntarily to provide paternity establishment services must abide by the rules of this subchapter.

§55.402.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) (No change.)

(2) Denial of Paternity form--A Statement executed by a presumed father denying parentage of the child of whom he is presumed to be the father, on a form prescribed by the Bureau of Vital Statistics. [ state. ]

(3) (No change.)

(4) Presumed father--A man who is legally assumed to be the father of a child because he meets the criteria found under Texas Family Code § 160.204. [ 151.002. ]

§55.404.Voluntarily Acknowledging Paternity.

(a) A man claiming to be the father and the mother may establish paternity before or after the birth of their child by voluntarily acknowledging paternity through a certified entity providing such services. The mother and father must read the Acknowledgment of Paternity form. In addition, both must listen to or view a video presentation of the rights and responsibilities of a parent, and alternatives to and legal consequences of acknowledging or denying paternity. Both the mother and father, separately or together, must then:

(1) complete an Acknowledgment of Paternity form;

(2) return the form to a certified entity. [ sign it before a witness; ]

[ (3) return the form to a certified entity.]

(b)-(c) (No change)

§55.405.Denial of Paternity Form.

If the mother declares in the Acknowledgment of Paternity form that there is a presumed father of the child, the acknowledgment must be accompanied by a Denial of Paternity form signed by the presumed father, unless the presumed father is the man who is acknowledging paternity. The Acknowledgment of Paternity form and the Denial of Paternity form may be filed with the Bureau of Vital Statistics separately or simultaneously. If the acknowledgment and denial are both necessary, neither document is valid until both documents are filed. [ The Bureau of Vital Statistics will not accept the Acknowledgment of Paternity form for filing without the Denial of Paternity form, unless the presumed father is the man who has signed the Acknowledgment of Paternity form. ]

§55.407.Certification.

All birthing hospitals, all birthing centers, the state Bureau of Vital Statistics, and each certified entity must have staff who:

(1)-(2) (No change.)

(3) receive training from the [ are trained by ] Office of the Attorney General [ staff ] at least once yearly on the requirements for voluntarily establishing paternity. (The training is not to exceed eight (8) hours at locations throughout the state established by the Office of the Attorney General and Bureau of Vital Statistics.)

(4)-(6) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

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

TRD-200203092

Susan D. Gusky

Assistant Attorney General

Office of the Attorney General

Earliest possible date of adoption: June 30, 2002

For information regarding this publication, please contact Andrea Younger, Agency Liaison, at (512) 463-2110.


Part 5. TEXAS BUILDING AND PROCUREMENT COMMISSION

Chapter 113. PROCUREMENT DIVISION

Subchapter A. PURCHASING

1 TAC §113.1, §113.22

Texas Building and Procurement Commission proposes amendments to Title 1, T.A.C., §113.1 - General; and proposes new §113.22 concerning Advisory Committees. The amendments and new rule are proposed in compliance with the rulemaking and reporting requirements of the Texas Government Code, Chapter 2110, §§2110.005, 2110.006, 2110.007, and 2110.008. State agencies that establish advisory committees are required by Chapter 2110 to provide an evaluation report of their advisory committees biennially to the Legislative Budget Board; designate by rule the date that an advisory committee will automatically be abolished; and by rule state the purpose and tasks of the committee, and the manner in which an advisory committee is to report to the state agency.

Ms. Cindy Reed, Deputy Executive Director of Administration and Procurement, has determined for the first five year period the rules are in effect, there will be no fiscal implication for the state or local governments as a result of enforcing or administering the amendments and new rule.

Ms. Cindy Reed, Deputy Executive Director of Administration and Procurement, further determines that for each year of the first five-year period the amendments and new rule are in effect, the public benefit anticipated as a result of enforcing these rules is compliance with the current statutory reporting and rulemaking requirements of Texas Government Code, Chapter 2110 for state agency established advisory committees. There will be no effect on large, small or micro-businesses. There is no anticipated economic costs to persons who are required to comply with these rules and there is no impact on local employment.

Comments on the proposals may be submitted to Juliet King, General Counsel, Texas Building and Procurement Commission, P.O. Box 13047, Austin, TX 78711-3047. Comments must be received no later than thirty days from the date of publication of the proposal to the Texas Register .

The amendments to §113.1 and new rule §113.22 are proposed under the authority of the Texas Government Code, Title 10, Subtitle C, §§ 2110.005, 2110.006, 2110.007 and 2110.008; and Subtitle D, §§2152.003, 2155.080, and 2155.081 which provides the Texas Building and Procurement Commission with the authority to promulgate rules necessary to implement the sections.

The following codes are affected by these rules: Texas Government Code, Title 10, Subtitle C, §§ 2110.005, 2110.006, 2110.007 and 2110.008; and Subtitle D, §§2152.003, 2155.080, and 2155.081.

§113.1.General Purchasing Provisions .

(a) The commission purchases supplies, materials, services, and equipment for the State of Texas.

(b) Whenever possible, purchases are based on competitive bids. Negotiation of contracts is permitted for:

(1) emergency purchases when there is insufficient time to solicit bids;

(2) proprietary purchases or purchases of items for which there is only one source of supply;

(3) purchases by means of competitive sealed proposals; and

(4) proposed purchases in circumstances where competitive specifications have been advertised but the commission has received only one acceptable bid, or no acceptable bids; provided, however, such negotiation may not result in a material change to the advertised specifications.

(c) The commission keeps records of purchases which:

(1) were competitively bid, or allowed for competitive bidding; and

(2) were not competitive, but were adequately justified in writing.

(d) Purchase contracts shall be governed by and interpreted under the laws of the State of Texas.

(e) The commission may use electronic services to improve the efficiency and effectiveness of the purchasing system. Such services are provided on a cost recovery basis to those who choose to use them. Examples of such services include electronic delivery of purchase orders, electronic receipt of bids and proposals, and electronic bulletin boards.

(f) If an agency desires to use the commission's [ Commission's ] services for a delegated or exempt purchase, a written request shall be made in a manner and form determined by the Director of the [ Central ] Procurement [ Services ] Division and containing information the Director deems relevant to the purchase and processing of the request. Such service shall be by cost recovery and the Director shall determine and include all relevant factors related to providing the service on a cost basis. In no event shall non-delegated purchases be placed in jeopardy by the processing of delegated or exempt purchases.

[ (g) The Director of the Central Procurement Services Division is delegated the authority to establish purchasing advisory committees as set forth in paragraphs (1) and (2) of this subsection:]

[ (1) An Advisory Committee on Procurement authorized under the Texas Government Code, §2155.080]

[ (2) A Vendor Advisory Committee authorized under the Texas Government Code, §2155.081.]

(g) [ (h) ] The Commission hereby establishes the program authorized by the Texas Government Code, §2155.078 and delegates to the Director of the [ Central ] Procurement Division the authority to administer the training, certification, and continuing education program for state agency purchasing personnel, including agencies exempted from the purchasing authority of the Commission, and purchasing personnel employed by a political subdivision or other public entity of the state in accordance with the Texas Government Code, Title 10, Subtitle D, Subchapter B, §2155.078 on a cost recovery basis. The director is further directed to promulgate guidelines for administering this program consistent with sound purchasing principles and state law.

§113.22.Advisory Committees.

(a) The Director of the Procurement Division is delegated authority to establish purchasing advisory committees as set forth in subsections (c) and (d) of this section. Advisory committees shall comply with requirements of the Texas Government Code, Chapter 2110 relating to State Agency Advisory Committees. The Advisory Committee on Procurement shall also comply with specific statutory authority provided by Texas Government Code, §2155.080; and the Vendor Advisory Committee shall also comply with specific statutory authority provided by Texas Government Code, §2155.081.

(b) An advisory committee in subsections (c) and (d) of this section are required to carry out the following functions:

(1) Establish its own rules of operation.

(2) The Director of the Procurement Division shall establish the size of the advisory committee.

(3) The chair of a purchasing advisory committee shall provide to the Director of the Procurement Division, or his designee, an annual report of the committee's activities.

(4) Annually, the Director of the Procurement Division, or his designee, shall evaluate the committee's work, usefulness, and the costs related to the committee's existence, including the cost of agency staff time spent in support of the committee's activities. The information developed in the evaluation shall be reported to the Legislative Budget Board biennially.

(5) Members of an advisory committee may not be reimbursed for expenses associated with conducting committee business, including travel expenses, unless otherwise authorized by the General Appropriations Act, Article IX, or approved by the Governor and the Legislative Budget Board.

(6) An advisory committee established by the Director of the Procurement Division shall be abolished on the fourth anniversary of the first meeting of the advisory committee,

(A) unless the governing body of the advisory committee votes to continue the committee in existence, and

(B) unless a specific duration is prescribed by statute for the advisory committee to exist.

(7) If the governing body of an advisory committee votes to continue the committee's existence, it shall continue to exist until the fourth anniversary date of the first meeting of its new term.

(c) The Advisory Committee on Procurement shall be composed of officers or employees from the commission, from state agencies, including institutions of higher education, and from political subdivisions who are invited by the commission to serve on the committee. The officers and employees who serve on the committee shall be experienced in public purchasing, public finance, or possess other appropriate expertise to serve on the committee. The purpose of the Advisory Committee on Procurement shall be to:

(1) provide a method for state agencies and political subdivisions to bring issues to the attention of the commission;

(2) review issues brought forth by the commission;

(3) develop and make recommendations on improvements to the procurement process;

(4) review and comment on findings and recommendations related to purchasing that are made by state agency internal auditors or by the state auditor;

(5) develop an assessment of the committee, committee goals and measurable objectives; and

(6) participate in an annual review of committee activities and make recommendations about the direction of the committee at the end of each fiscal year.

(d) The Vendor Advisory Committee shall be composed of employees from the commission and vendors who have done business with the state, and who are invited by the commission to serve on the committee. The commission shall invite a cross-section of the vendor community to serve on the committee, both large and small businesses and vendors who provide a variety of different goods and services to the state. The purpose of the Vendor Advisory Committee shall be to:

(1) represent the vendor community before the commission;

(2) serve as a channel for providing information to vendors;

(3) obtain vendor input and develop and make recommendations on improvements to the procurement process;

(4) develop an assessment of the committee, committee goals and measurable objectives at the end of each fiscal year; and

(5) participate in an annual review of the committee's activities and make recommendations about the direction and continuance of the committee at the end of each fiscal year.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

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

TRD-200203073

Juliet King

Legal Counsel

Texas Building and Procurement Commission

Earliest possible date of adoption: June 30, 2002

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


1 TAC §113.2

The Texas Building and Procurement Commission proposes amendments to Title 1, T.A.C., §113.2 - Definitions. The amendments will add four new definitions to define the term "local government" as it applies to Title 1, T.A.C., Chapter 113 - Procurement Division; and will clarify language found in the following rules: §113.16 - Multiple Award Contract Procedure; §113.17 - Multiple Award Schedule; and §113.21 - Reverse Auction. The purpose of the proposed amendments is to establish additional common terms of reference for state agencies and local governmental entities.

Ms. Cindy Reed, Deputy Executive Director of Administration and Procurement, has determined for the first five year period the amendments are in effect there will be no fiscal implication for the state or local governments as a result of the added definitions. The additional definitions will facilitate the use and understanding of the purchasing methods.

Ms. Cindy Reed, Deputy Executive Director of Administration and Procurement, further determines that for each year of the first five-year period the amendments are in effect, the public benefit anticipated as a result of enforcing these rules will be a positive effect on large, small or micro-businesses that routinely participate in state business opportunities in that the additional definitions will provide common terms of reference and add clarification to the state's procurement process. There will be no anticipated economic costs to persons who are required to comply with these rules and there is no impact on local employment.

Comments on the proposals may be submitted to Juliet King, Legal Counsel, Texas Building and Procurement Commission, P.O. Box 13047, Austin, TX 78711-3047. Comments must be received no later than thirty days from the date of publication of the proposal to the Texas Register .

The amendments to Title 1, T.A.C., §113.2 - Definitions are proposed under the authority of the Texas Government Code, §2152.003; Texas Government Code, Chapter 2155, Subchapter B - General Purchasing Requirements, Procedures and Programs, §2155,062; and Subchapter I - Multiple Award Contract Schedule, §§2155.501 through 2155.509 which provides the Texas Building and Procurement Commission with the authority to promulgate rules necessary to implement the sections.

The following codes are affected by these rules: Texas Government Code, Title 10, Subtitle D, §2152,003; Texas Government Code, Chapter 2155, Subchapter B, §2155,062; and Subchapter I, §§2155.501 through 2155.509.

§113.2.Definitions.

The following words and terms, when used in this title, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Adopted uniform standards and specifications--Specifications and standards developed by nationally recognized standards-making associations that are evaluated and adopted by the specifications and standards program.

(2) Advisory groups--A group that advises and assists the standards and specification program in establishing specifications. The advisory group may include representatives from federal, state and local governments, user groups, manufacturers, vendors and distributors, bidders, associations, colleges, universities, testing laboratories and others with expertise and specialization in particular product area.

(3) Agency--A state agency as the term is defined under the Texas Government Code, Title 10, §2151.002.

(4) Agent of record--An employee or official designated by a qualified cooperative entity as the individual responsible to represent the qualified entity in all matters relating to the program.

(5) Approved products list--The list is also referred to as the approved brands list or qualified products list. It is a specification developed by evaluation brands and models of various manufacturers and listing those determined to be acceptable to meet the minimum level of quality. Testing is completed in advance of procurement to determine which products comply with the specifications and standards requirements.

(6) Award--The act of accepting a bid, thereby forming a contract between the state and a bidder.

(7) Bid--An offer to contract with the state, submitted in response to a bid invitation issued by the commission.

(8) Bid deposit--A deposit required of bidders to protect the state in the event a low bidder attempts to withdraw its bid or otherwise fails to enter into a contract with the state. Acceptable forms of bid deposits are limited to: cashier's check, certified check, or irrevocable letter of credit issued by a financial institution subject to the laws of Texas and entered on the United States Department of the Treasury's listing of approved sureties; a surety or blanket bond from a company chartered or authorized to do business in Texas.

(9) Bid sample--A sample required to be furnished as part of a bid, for evaluating the quality of the product offered.

(10) Bidder--An individual or entity that submits a bid. The term includes anyone acting on behalf of the individual or other entity that submits a bid, such as agents, employees, and representatives.

(11) Blanket bond--A surety bond which provides assurance of a bidder's performance on two or more contracts in lieu of separate bonds for each contract. The amount for a blanket bond shall be established by the commission based on the bidder's annual level of participation in the state purchasing program.

(12) Board--The governing body of a county or local school district.

(13) Brand name--A trade name or product name which identifies a product as having been made by a particular manufacturer.

(14) Centralized master bidders list (CMBL)--A list maintained by the commission containing the names and addresses of prospective bidders and qualified information systems vendors.

(15) Consumable procurement budget--That portion of an agency's budget as identified by the comptroller's expenditure codes attributable to consumable supplies, materials, and equipment.

(16) Cooperative purchasing program--A program to provide purchasing services to qualified cooperative entities, as defined herein.

(17) Debarment--An exclusion from contracting or subcontracting with state agencies on the basis of any cause set forth in §113.102 of this title (relating to Vendor Performance and Debarment), commensurate with the seriousness of the offense, performance failure, or inadequacy to perform.

(18) Director--The director of the commission's purchasing division.

(19) Distributor purchase--Purchase of repair parts for a unit of major equipment that are needed immediately or as maintenance contracts for laboratory/medical equipment.

(20) Emergency purchase--A purchase of goods or services so badly needed that an agency will suffer financial or operational damage unless the items are secured immediately.

(21) Environmentally sensitive products--Products that protect or enhance the environment, or that damage the environment less than traditionally available products.

(22) Equivalent product--A product that is comparable in performance and quality to the specified product.

(23) Escalation clause--A clause in a bid providing for a price increase under certain specified circumstances.

(24) Formal bid--A written bid submitted in a sealed envelope in accordance with a prescribed format, or an electronic data interchange transmitted to the commission in accordance with procedures established by the commission.

(25) Group purchasing program--A purchasing program that offers discount prices to two or more state agencies or institutions of higher education, which is formed as a result of interagency or interlocal cooperation and follows all applicable statutory standards for purchases.

(26) Informal bid--An unsealed, competitive bid submitted by letter, telephone, telegram, or other means.

(27) Invitation for bids (or IFB)--A written request for submission of a bid; also referred to as a bid invitation.

(28) Late bid--A bid that is received at the place designated in the bid invitation after the time set for bid opening.

(29) Level of quality--The ranking of an item, article, or product in regard to its properties, performance, and purity.

(30) List of approved equipment--A list of items available under term contracts for purchase by school districts through the commission pursuant to the Texas Education Code, §21.901.

(31) Local government-- a county, municipality, special district, school district, junior college district, regional planning commission, or other political subdivision of the state pursuant to Local Government Code, §271.101.

(32) [ (31) ] Manufacturer's price list--A price list published in some form by the manufacturer and available to and recognized by the trade. The term does not include a price list prepared especially for a given bid.

(33) Multiple award contract (as it applies to Multiple Award Schedule Contracts)--an award of a contract for an indefinite amount of one or more similar goods or services from a vendor.

(34) [ (32) ] Multiple award contract procedure--A purchasing procedure by which the commission establishes one or more levels of quality and performance and makes more than one award at each level.

(35) [ (33) ] Non-competitive purchase--A purchase of goods or services (also referred to as "spot purchase") that does not exceed the amount stated in §113.11 (c) (1) of this title (relating to Delegated Purchases).

(36) [ (34) ] Notice of award--A letter signed by the director or his designee which awards and creates a term contract.

(37) [ (35) ] Open market purchase--A purchase of goods, usually of a specified quantity, made by buying from any available source in response to an open market requisition.

(38) [ (36) ] Performance bond--A surety bond which provides assurance of a bidder's performance of a certain contract. The amount for the performance bond shall be based on the bidder's annual level of potential monetary volume in the state purchasing program. Acceptable forms of bonds are those described in the definition for "bid deposit".

(39) [ (37) ] Perishable goods--Goods that are subject to spoilage within a relatively short time and that may be purchased by agencies under delegated authority.

(40) [ (38) ] Post-consumer materials--Finished products, packages, or materials generated by a business entity or consumer that have served their intended end uses, and that have been recovered or otherwise diverted from the waste stream for the purpose of recycling.

(41) [ (39) ] Pre-consumer materials--Materials or by-products that have not reached a business entity or consumer for an intended end use, including industrial scrap material, and overstock or obsolete inventories from distributors, wholesalers, and other companies. The term does not include materials and by-products generated from, and commonly reused within, an original manufacturing process or separate operation within the same or a parent company.

(42) [ (40) ] Proprietary--Products or services manufactured or offered under exclusive rights of ownership, including rights under patent, copyright, or trade secret law. A product or service is proprietary if it has a distinctive feature or characteristic which is not shared or provided by competing or similar products or services.

(43) [ (41) ] Public bid opening--The opening of bids at the time and place advertised in the bid invitation, in the presence of anyone who wishes to attend. On request of any person in attendance, bids will be read aloud.

(44) [ (42) ] Purchase orders--

(A) Open market purchase order--A document issued by the commission to accept a bid, creating an open market purchase contract.

(B) Automated contract purchase order--A release order issued by the commission under an existing term contract, and pursuant to a requisition from a qualified ordering entity.

(C) Non-automated purchase order--A release order issued by an agency as a non-automated term contract, and pursuant to a requisition by the qualified ordering entity.

(45) [ (43) ] Purchasing functions--The development of specifications, receipt and processing of requisitions, review of specifications, advertising for bids, bid evaluation, award of contracts, and inspection of merchandise received. The term does not include invoice, audit, or contract administration functions.

(46) [ (44) ] Qualified information systems vendor catalogue proposal--A request for offers or quotations of prices from catalogue vendors (QISV).

(47) [ (45) ] Qualified cooperative entity--An entity that qualifies for participation in the cooperative purchasing program:

(A) A county, municipality, school district, special district, junior college district, or other legally constituted political subdivision of the state that is a local government.

(B) Mental health and mental retardation community centers in Government Code, §2155.202, that receive grants-in-aid under the provisions of Subchapter B, Chapter 534, Health and Safety Code.

(C) An assistance organization as defined in Government Code, §2175.001, that receive any state funds.

(D) A political subdivision, under Chapter 791, Government Code.

(48) [ (46) ] Qualified Ordering Entity--A state agency as the term is defined under the Texas Government Code, Title 10, §2151.002, or an entity that qualifies for participation in the cooperative purchasing program as defined in Local Government Code, Subchapter D, §271.081.

(49) [ (47) ] Recycled material content--The portion of a product made with recycled materials consisting of pre-consumer materials (waste), post-consumer materials (waste), or both.

(50) [ (48) ] Recycled materials--Materials, goods, or products that contain recyclable material, industrial waste, or hazardous waste that may be used in place of raw or virgin materials in manufacturing a new product.

(51) [ (49) ] Recycled product--A product that meets the requirements for recycled material content as prescribed by the rules established by the Texas Natural Resource Conservation Commission in consultation with the Texas Building and Procurement [ General Services ] Commission.

(52) [ (50) ] Remanufactured product--A product that has been repaired, rebuilt, or otherwise restored to meet or exceed the original equipment manufacturer's (OEM) performance specifications; provided, however, the warranty period for a remanufactured product may differ from the OEM warranty period.

(53) [ (51) ] Request for proposal--A written request for offers concerning goods or services the state intends to acquire by means of the competitive sealed proposal procedure.

(54) [ (52) ] Requisition--

(A) Open market purchase requisition--An initiating request from an agency describing needs and requesting the commission to purchase goods or services to satisfy those needs.

(B) Term contract purchase requisition--A request from a qualified ordering entity for delivery of goods under an existing term contract.

(55) [ (53) ] Responsible vendor--A vendor who has the capability to perform all contract requirements in full compliance with applicable state law, ethical standards, and applicable commission rules.

(56) [ (54) ] Resolution--Document of legal intent adopted by the governing body of a qualified cooperative entity that evidences the qualified cooperative entity's participation in the cooperative purchasing program.

(57) Reverse Auction--a real time bidding procedure that is Internet dependent and which is conducted at a pre-scheduled time and Internet location in which multiple suppliers, anonymous to each other, submit bids for designated goods or services.

(58) Schedule--a list of multiple award contracts from which agencies may purchase goods and services.

(59) [ (55) ] Scheduled purchase--A purchase with a prescheduled bid opening date, allowing the commission to combine orders for goods.

(60) [ (56) ] Sealed bid--A formal written bid.

(61) [ (57) ] Solicitation--An invitation for bids or a request for proposals.

(62) [ (58) ] Specification--A concise statement of a set of requirements to be satisfied by a product, material or service, indicating whenever appropriate the procedures to determine whether the requirements are satisfied.

(63) [ (59) ] Standard specification--A description of what the purchaser requires and what a bidder or proposer must offer.

(64) [ (60) ] Successor-in-interest--Any business entity that has ownership similar to a business entity. For purposes of §113.102 of this title (relating to Vendor Performance and Debarment), it shall be presumed that a business entity that employs, or is associated with, any partner, member, officer, director, responsible managing officer, or responsible managing employee, of a business entity that was previously debarred is a successor-in-interest.

(65) [ (61) ] Tabulation of bids--The recording of bids and bidding data for purposes of bid evaluation and recordkeeping.

(66) [ (62) ] Term contract purchase--A purchase by a qualified ordering entity under a term contract, which established a source of supply for particular goods at a given price for a specified period of time.

(67) [ (63) ] Testing--an element of inspection involving the determination, by technical means, of the properties or elements of item(s) or component(s), including function operation.

(68) [ (64) ] Texas uniform standards and specification--Standards and specifications prepared and published by the standards and specifications program of the commission.

(69) [ (65) ] Total expenditures on products with recycled material content, remanufactured products, and environmentally sensitive products--The total direct acquisition costs (vendor selling price plus delivery costs) of all such products.

(70) [ (66) ] Unit price--The price of a selected unit of a good or service, e.g., price per ton, per labor hour, or per foot.

(71) [ (67) ] Using agency--An agency of government that requisitions goods or services through the commission.

(72) [ (68) ] Vendor--A supplier of goods and services to the state.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

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

TRD-200203074

Juliet King

Legal Counsel

Texas Building and Procurement Commission

Earliest possible date of adoption: June 30, 2002

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


1 TAC §113.4

The Texas Building and Procurement Commission proposes amendments to Title 1, T.A.C., §113.4 - Centralized Master Bidders List. The amendments will revise the current rules as they relate to procedures used in the vendor registration and vendor record processes that are required to accommodate e-commerce initiatives established by Texas Government Code, §§2155.265 and 2156.003. The amendments will also add a new provision that will allow agencies to add vendors who are not on the Centralized Master Bidders List (CMBL) to a final bid list for specific solicitations in order to increase competition. The authority for this new provision is Texas Government Code, §2155.269.

Ms. Cindy Reed, Deputy Executive Director of Administration and Procurement, has determined for the first five year period the rule is in effect there will be no fiscal implication for the state or local governments as a result of enforcing or administering the amendments relating to the Centralized Master Bidders List. A positive fiscal implication is anticipated from allowing state agencies to add non CMBL vendors to their final bid list for specific solicitations. The amendments should, in specific instances, enhance competition and enable state agencies and other qualified entities to fulfill specific procurement needs in a more cost efficient manner. The positive fiscal impact on state and local governments cannot be quantified at present.

Ms. Cindy Reed, Deputy Executive Director of Administration and Procurement, further determines that for each year of the first five-year period the amendments are in effect, the public benefit anticipated as a result of enforcing the rule is compliance with the current statutory requirements of Texas Government Code, Chapter 2155 and 2156 as they apply to e-commerce initiatives. There will be a positive effect on large, small or micro-businesses that routinely participate in state business opportunities in that bid list application and record maintenance functions have been revised and clarified. There will be no anticipated economic costs to persons who are required to comply with the rule and there is no impact on local employment.

Comments on the proposals may be submitted to Juliet King, Legal Counsel, Texas Building and Procurement Commission, P.O. Box 13047, Austin, TX 78711-3047. Comments must be received no later than thirty days from the date of publication of the proposal to the Texas Register .

The amendments to §113.4 are proposed under the authority of the Texas Government Code, Title 10, Subtitle D, §§2152.003, 2155.267, 2155.268, and 2155.269 which provides the Texas Building and Procurement Commission with the authority to promulgate rules necessary to implement the sections.

The following codes are affected by these rules: Texas Government Code, Title 10, Subtitle D, §§2152.003, 2155.267, 2155.268, and 2155.269.

§113.4.Centralized Master Bidders List.

(a) The commission maintains the Centralized Master Bidders List (CMBL) of the names and addresses of vendors which have registered [ applied and been accepted ] for inclusion on the CMBL. The CMBL is maintained for the state's use in obtaining competitive bids for purchases and for registering vendors who wish to be designated as qualified information systems vendors. [ No vendor will be placed on the CMBL to receive bid invitations for information purposes only. ] Bid invitations and requests for proposals shall be [ are ] transmitted to vendors on the CMBL for the solicited commodity and/or service designated by the vendor for open market, term contracts, competitive sealed proposal acquisitions and delegated purchases in excess of the non-competitive bid limit.

(b) Registration for the Centralized Master Bidders List is an on line process with a vendor managed web based system. The established fee is to be paid annually. [ To be considered for inclusion on the CMBL, a vendor must: ]

[ (1) complete the application form provided by the commission which includes certification that the vendor has access to the class and item codes and is aware of the requirements and procedures regarding the provision of goods, services and other transactions with the state and its qualified ordering entities;]

[ (2) remit a check or money order in the amount of $100, which is the biennial maintenance fee assessed to cover the commission's costs for maintaining the bidders list and transmission of bids or proposals. This fee, less a reasonable handling fee approved by the director, will be refunded if the applicant is not accepted for inclusion on the CMBL.]

(c) It is the vendor's responsibility to maintain their CMBL profile to ensure correct information for receipt of bids based on products or services which can be provided for selected districts for the State of Texas. [ The commission will review and evaluate the CMBL application, and may reject an application that is not satisfactorily completed. ]

(d) A vendor may be administratively removed from the CMBL for one or more of the following reasons:

(1) failing to pay or unnecessarily delaying payment of damages assessed by the commission;

[ (2) failing to submit bids in response to bid invitations on either: ]

[ (A) four consecutive open market invitations concerning the affected class or item; or ]

[ (B) one or more contract or schedule invitations concerning the affected class;]

(2) [ (3) ] failing to remit the annual [ biennial ] CMBL [ maintenance ] fee; or

(3) [ (4) ] any factor set forth in Government Code, Chapter 2155 [ , §§ 2155.070 and 2155.077 ].

(e) A vendor which has been removed from the CMBL shall not be reinstated until expiration of the period for which the vendor was removed and approval is granted [ by the director ].

(f) An error in addressing a bid invitation or request for proposal or a failure of the post office to deliver the solicitation will not be sufficient reason to require the commission to reject all other bids or proposals.

(g) State agencies shall use the CMBL to select bidders for competitive bids or proposals and to the fullest extent possible for purchases exempt from the commission's purchasing authority. This requirement does not apply to the Texas Department of Transportation or to an institution of higher education as defined by §61.003, Education Code, but an institution of higher education should use the CMBL when possible.

(h) As set forth in Texas Government Code, Chapter, §2155.269, state agencies may waive the requirement to solicit only from bidders listed on the Centralized Master Bidders List (CMBL) by obtaining approval from the agency head or designee to add non-CMBL bidders to the final bid list. Non-CMBL bidders can be added to the final bid list for specific solicitations where the requirement to solicit only CMBL bidders is not warranted, such as to increase competition. This does not apply to purchases in §113.19 of this title (relating to Qualification of Information Systems Vendors (QISV))

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

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

TRD-200203075

Juliet King

Legal Counsel

Texas Building and Procurement Commission

Earliest possible date of adoption: June 30, 2002

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


1 TAC §113.6

The Texas Building and Procurement Commission proposes amendments to Title 1, T.A.C., §113.6, concerning Bid Evaluation and Award. The amendments will update statutory citations in the current rule as they relate to the application best value criteria in determining an award. Because solicitations for goods and services differ in scope, purpose and detail, the amendment expands the statutory reference that of Texas Government Code, §§2155.074, 2155.075, 2156.007, 2157.003 and 2157.125.

Ms. Cindy Reed, Deputy Executive Director of Administration and Procurement, has determined for the first five year period the rules are in effect there will be no fiscal implication for the state or local governments as a result of the application of the expanded statutory reference for best value criteria.

Ms. Cindy Reed, Deputy Executive Director of Administration and Procurement, further determines that for each year of the first five-year period the amendments and new rule are in effect, the public benefit anticipated as a result of enforcing the amended rule is compliance with the current statutory requirements of Texas Government Code, Chapters 2155, 2156 and 2157 as they apply to best value determinations in the contract award process.

Comments on the proposals may be submitted to Juliet King, Legal Counsel, Texas Building and Procurement Commission, P.O. Box 13047, Austin, TX 78711-3047. Comments must be received no later than thirty days from the date of publication of the proposal to the Texas Register .

The amendments to §113.6 are proposed under the authority of the Texas Government Code, Title 10, Subtitle D, §§2152.003, 2155.074, 2155.075, 2156.007, 2157.003 and 2157.125 which provides the Texas Building and Procurement Commission with the authority to promulgate rules necessary to implement the sections.

The following codes are affected by these rules: Texas Government Code, Title 10, Subtitle D §§2152.003, 2155.074, 2155.075, 2156.007, 2157.003 and 2157.125.

§113.6.Bid Evaluation and Award.

(a) Bid evaluation.

(1) The commission may accept or reject any bid or any part of a bid or waive minor technicalities in a bid, if doing so would be in the state's best interest.

(2) A bid price may not be altered or amended after bids are opened except to correct mathematical errors in extension.

(3) No increase in price will be considered after a bid is opened. A bidder may reduce its price provided it is the lowest and best bidder and is otherwise entitled to the award.

(4) Bid prices are considered firm for acceptance for 30 days from the bid opening date for open market purchases and 60 days for term contracts, unless otherwise specified in the invitation for bids.

(5) A bid containing a self-evident error may be withdrawn by the bidder prior to an award.

(6) Bid prices which are subject to unlimited escalation will not be considered. A bidder may offer a predetermined limit of escalation in his bid and the bid will be evaluated on the basis of the full amount of the escalation.

(7) A bid containing a material failure to comply with the advertised specifications shall be rejected.

(8) All bids must be based on "F.O.B. destination" delivery terms unless otherwise specified.

(9) If requested in the invitation for bids, samples must be submitted or the bid will be rejected. The commission will require samples only when essential to the assessment of product quality during bid evaluation. Samples for non-winning bids shall be returned to a bidder whenever practicable, at the bidder's expense. Otherwise, samples will be disposed of in the same manner as surplus or salvage property.

(10) When brand names are specified, bids on alternate brands will be considered if they otherwise meet specification requirements.

(11) Cash discounts are acceptable but are not considered in making an award. All cash discounts offered will be taken if they are earned by the agency.

(12) No electrical item may be purchased unless the item meets applicable safety standards of the federal Occupational Safety and Health Administration (OSHA).

(b) Award.

(1) All awards shall be made to the bidder complying with the best value criteria used in the bid and conforming to the advertised product or service specifications. In determining which bidder is offering the best value, in addition to price, the commission may [ shall ] consider and evaluate the factors set out in Government Code, Title 10, Subtitle D, Subchapter A, §§2155.074, 2155.075, 2156.007, 2157.003 and 2157.125 , [ §2156.007 ] and all other factors comprising the best value criteria as may be set forth in the solicitation [ bid ].

(2) An open market purchase contract is awarded and created when the director of purchasing or his designee authorizes an open market purchase order. A term contract is awarded and created when the director of purchasing or his designee signs a notice of award.

(3) In case of tie bids which cannot be resolved by application of one or more preferences described in §113.8 of this title (relating to Preferences), an award shall be made by drawing lots.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

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

TRD-200203076

Juliet King

Legal Counsel

Texas Building and Procurement Commission

Earliest possible date of adoption: June 30, 2002

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


1 TAC §113.8

The Texas Building and Procurement Commission proposes amendment to Title 1, T.A.C., §113.8, concerning Preferences. The amendment will add two purchasing preferences pursuant to Texas Government Code, §2155.449 relating to a preference for goods and services from economically depressed or blighted areas; and a preference for goods produced in a formerly contaminated property for which the owner has a certificate of completion for voluntary cleanup pursuant to and the Health and Safety Code, §361.609.

Ms. Cindy Reed, Deputy Executive Director of Administration and Procurement, has determined for the first five year period the rule are in effect there will be no fiscal implication for the state or local governments as a result of the application of the additional preferences .

Ms. Cindy Reed, Deputy Executive Director of Administration and Procurement, further determines that for each year of the first five-year period the amendment is in effect, the public benefit anticipated as a result of enforcing the amended rule is updated language that is consistent with statutory requirements of Texas Government Code, §2155.449 for applying certain preferences when determining the award of a bid. There will be no effect on large, small or micro-businesses. There is no anticipated economic costs to persons who are required to comply with this rule and there is no impact on local employment.

Comments on the proposals may be submitted to Juliet King, Legal Counsel, Texas Building and Procurement Commission, P.O. Box 13047, Austin, TX 78711-3047. Comments must be received no later than thirty days from the date of publication of the proposal to the Texas Register .

The amendments to §113.8 are proposed under the authority of the Texas Government Code, Title 10, Subtitle D, §§2152.003, and 2155.449 which provides the Texas Building and Procurement Commission with the authority to promulgate rules necessary to implement the sections.

The following codes are affected by these rules: Texas Government Code, Title 10, Subtitle D, §§2152.003 and 2155.449.

§113.8.Preferences

(a) Claiming a preference. To claim a preference, a bidder shall mark the appropriate box on the face of the bid invitation. If the appropriate box is not marked, a preference will not be granted unless other documents included in the bid show a right to the preference.

(b) Preferences.

(1) Texas resident bidders.

(A) A Texas resident bidder shall be given preference over a nonresident bidder when the cost, and quality of the goods or services are equal.

(B) The commission may award a contract to a nonresident bidder only if its bid is lower than the lowest bid submitted by a responsible Texas resident bidder by the same amount that a Texas resident bidder would be required to underbid the nonresident bidder to obtain a comparable contract in the state where the nonresident's principal place of business is located. In evaluating a bid of a nonresident bidder, an amount will be added equal to the amount a Texas resident bidder would be required to underbid a nonresident bidder to obtain a comparable contract in the state where the nonresident bidder's principal place of business is located, otherwise known as reciprocal preference. After the amount is added, an award may be made to the nonresident bidder if it is determined to have the lowest price and best bid. The amount added is for evaluation purposes only; in no event shall an amount be awarded in excess of the amount actually bid.

(2) Texas and United States products.

(A) Supplies, materials, or equipment produced in Texas shall be given preference over comparable goods produced outside Texas when the cost and quality of the goods are equal. Supplies, materials, and equipment are considered to be produced in Texas if they are manufactured in Texas; "manufactured" does not include the work of packaging or repackaging.

(B) Agricultural products grown in Texas shall be given preference over comparable products grown outside Texas when the cost and quality of the goods are equal. Agricultural products are considered grown in Texas if they contain any amount grown in Texas. In case of tie bids between agricultural products claiming the preference, the bidder whose product contains the greatest percentage of the product grown in Texas will prevail. For purposes of this preference, agricultural products include, among other things, textiles and fiber products, processed and unprocessed foods, feed, lumber and forestry products, live animals, plants, flowers, and nursery stock.

(C) Supplies, materials, equipment, or agricultural products produced or grown in the United States shall be given preference over foreign products when the cost and quality are equal, if comparable goods of equal cost and quality produced or grown in Texas or offered by Texas bidders are not available.

(3) Products of persons with mental or physical disabilities. A preference shall be given to manufactured products of workshops, organizations, or corporations whose primary purpose is training and employing persons with mental or physical disabilities, if the products meet state specifications as to quantity, quality, and price. Competitive bids are not required for purchases of blind-made goods or services offered as a result of efforts by the Texas Council on Purchasing from People with Disabilities, if the goods or services meet state specifications as to quantity, quality, price, delivery, life cycle costs, and costs no more than the fair market price of similar items.

(4) Recycled, remanufactured or environmentally sensitive products. A preference shall be given to recycled, remanufactured or environmentally sensitive products if the products meet state specifications as to quantity and quality and defined best value factors.

(5) Energy efficient products. A preference shall be given to energy efficient products if they meet state requirements as to quantity and quality, and are equal to or less than the cost of other products offered. This preference shall be applied by evaluating the energy use of the products offered and considering the costs of such energy use over the expected life of the equipment. The methodology for evaluating energy use and costs shall be included in the bid invitation.

(6) Rubberized asphalt paving material. A preference shall be given to rubberized asphalt paving material made from scrap tires by a facility in this state if the cost, as determined by life-cycle cost benefit analysis, does not exceed the bid cost of alternative paving materials by more than 15%.

(7) Recycled motor oil and lubricants. A preference shall be given to motor oils and lubricants that contain at least 25% recycled oil if the quality is comparable and the cost is equal to or less than new oil and lubricants.

(8) Products and services from economically depressed or blighted areas as defined in Texas Government Code, §2306.004 or that meet the definition of a historically underutilized business zone as defined by 15 U.S.C. Section 632(p). Preference shall be given to products from economically depressed or blighted areas if they meet state requirements as to quantity and quality, and are equal to or less than the cost of other products offered.

(9) Products produced at a facility located on property for which the owner has received a certificate of completion under §361.609, Health and Safety Code, if the goods meet state specifications regarding quantity, quality, delivery, life cycle costs, and price.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

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

TRD-200203077

Juliet King

Legal Counsel

Texas Building and Procurement Commission

Earliest possible date of adoption: June 30, 2002

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


1 TAC §113.9

The Texas Building and Procurement Commission proposes amendment to Title 1, T.A.C., §113.9, concerning Contract Administration. The amendment provides a specific remedy which can be asserted against a vendor who has failed to pay damages assessed by the state. The amendment is in accordance with Texas Government Code, §§2155.070 and 2155.077.

Ms. Cindy Reed, Deputy Executive Director of Administration and Procurement, has determined for the first five year period the rules are in effect there will be no fiscal implication for the state or local governments as a result of the additional contract administration option. An indirect, positive fiscal implication may be experienced because in specific instances the added option will allow the commission to enforce vendor performance standards more efficiently thereby improving the service and quality of goods provided to the customer base.

Ms. Cindy Reed, Deputy Executive Director of Administration and Procurement, further determines that for each year of the first five-year period the amendment is in effect, the public benefit anticipated as a result of enforcing the amended rule is compliance with the current statutory requirements of Texas Government Code, §§2155.070 and 2155.077. There will be a positive effect on large, small or micro-businesses that routinely participate in state business opportunities in that a clear, enforceable mechanism will exist to respond to and correct substandard performance by vendors. There is no anticipated economic costs to persons who are required to comply with this rule and there is no impact on local employment.

Comments on the proposals may be submitted to Juliet King, Legal Counsel, Texas Building and Procurement Commission, P.O. Box 13047, Austin, TX 78711-3047. Comments must be received no later than thirty days from the date of publication of the proposal to the Texas Register .

The amendments to §113.9 are proposed under the authority of the Texas Government Code, §§2152.003, 2155.070 and 2155.077.

The following codes are affected by these rules: Texas Government Code, Title 10, Subtitle D, §§2152.003, 2155.070 and 2155.077.

§113.9.Contract Administration.

(a) Inspection of merchandise.

(1) Qualified ordering entities must inspect all shipments received against orders and report any discrepancies to the commission immediately.

(2) If unlisted shortages are discovered, the vendor and the commission must be notified immediately. Unless shipments are checked immediately upon arrival and such shortage reports are made within 15 days, the contractor cannot be held responsible for shortages.

(3) A contractor may be required to pick up any merchandise not conforming to specifications and replace the merchandise immediately.

(b) Substitutions. Substitution of items called for in a contract is not permitted without the commission's prior approval. No such approval will be granted unless substituted items are of equal quality and are offered at the same or lower price.

(c) Cancellations.

(1) Cancellations on orders issued by the commission, either on the part of the vendor or a qualified ordering entity, are not permitted without the commission's prior written approval.

(2) Orders may be canceled without the contractor's consent due to unsatisfactory performance or nonperformance by the contractor.

(3) Orders may not be canceled without first obtaining the consent of the contractor if the reason for cancellation is not the fault of the contractor.

(4) A contract or a portion of a contract may be canceled on request of the contractor if the contractor is unable to perform due to circumstances beyond its control. In these instances, the commission will consider such requests when presented in writing with proper documentation.

(d) Damages for failure to perform.

(1) A vendor who fails to perform as required under a contract shall be liable for actual damages and costs incurred by the state.

(2) If any merchandise delivered under a contract has been used or consumed by an agency and on testing is found not to comply with specifications, no payment may be approved by the commission for such merchandise until the amount of actual damages incurred has been determined.

(3) A vendor who fails to pay damages assessed by the state may be removed from the Centralized Master Bidders List (CMBL) for not longer than one year. If complaints resume after the vendor is reinstated on the bidders list, the commission may bar the vendor from participating in state contracts pursuant to §113.102 of this title (relating to Vendor Performance and Debarment.) A vendor may not be awarded additional contracts until such damages have been paid or the matter has been otherwise resolved.

(4) The commission shall seek to collect damages by following the procedures established by the Office of the Attorney General for the collection of delinquent obligations.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

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

TRD-200203078

Juliet King

Legal Counsel

Texas Building and Procurement Commission

Earliest possible date of adoption: June 30, 2002

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


1 TAC §113.19

The Texas Building and Procurement Commission proposes amendments to Title 1, T.A.C., §113.19, concerning Qualification of Information Systems Vendors. The proposed amendments will update statutory citations (Texas Government Code, §§2157.062 through 2157.066) referenced in §113.19(d)(1) for requirements or criteria a vendor must meet in order to be designated as a Qualified lnformation Systems Vendors (QISV). Language has also been added to include the requirement found in Texas Government Code, §2157.066, that requires a vendor to make catalog information available on the worldwide web in order to be designated as a QISV.

Ms. Cindy Reed, Deputy Executive Director of Administration and Procurement, has determined for the first five year period the rules are in effect, there will be no fiscal implication for the state or local governments as a result of enforcing or administering the amended rule.

Ms. Cindy Reed, Deputy Executive Director of Administration and Procurement further determines that for each year of the first five-year period the amendments are in effect, the public benefit anticipated as a result of enforcing the rule will be language that is consistent with statutory requirements for designating QISV vendors found in Texas Government Code, §§2157.062 through 2157.066. There will be no effect on large, small or micro-businesses. There is no anticipated economic costs to persons who are required to comply with this rule, and there is no impact on local employment.

Comments on the proposals may be submitted to Juliet King, Legal Counsel, Texas Building and Procurement Commission, P.O. Box 13047, Austin, TX 78711-3047. Comments must be received no later than thirty days from the date of publication of the proposal to the Texas Register .

The amendments to §113.19 are proposed under the authority of the Texas Government Code, Title 10, Subtitle D, §2152.003 and §§2157.062 through 2157.066 which provides the Texas Building and Procurement Commission with the authority to promulgate rules necessary to implement the sections.

The following code is affected by these rules: Government Code, Title 10, Subtitle D, §2152.003 and §§2157.062 through 2157.066.

§113.19.Qualification of Information Systems Vendors

(a) Upon registration on the commission's Centralized Master Bidders List (CMBL), a vendor wishing to sell or lease automated information systems to governmental entities in accordance with this rule shall apply to the commission for designation as a qualified information systems vendor (QISV) by completing and submitting an application and catalogue URL (Universal Resource Locater, i.e. web site address) .

(b) In this section a governmental entity is a state agency subject to the Information Resources Act (Texas Government Code, Title 10, Subtitle B, Chapter 2054) or a local government entity that participates in the Cooperative Purchasing Program under the Texas Local Government Code, Title 8, Subtitle C, Subchapter D.

(c) An application must include the following:

(1) a statement detailing the geographic area in Texas to which the vendor desires to market catalogue products and services;

(2) a statement acknowledging that any terms and conditions in the vendor's catalogue that conflict with the Constitution or laws of the State of Texas shall not be enforceable and, therefore, will not be binding.

(d) Upon receipt of a properly completed application, the director or the director's designee shall give consideration to the criteria set forth in the Texas Government Code, §§2157.062 through 2157.066. [ the following standards and criteria when deciding to designate a vendor as a QISV: ]

[ (1) the criteria set forth in the Texas Government Code, §§2157.06 and 2157.065;]

[ (2) the vendor's history of performance under Texas Government Code, §2155.077.]

(e) An application that is incomplete or that contains inaccurate information will not be approved, and the vendor will be notified of corrections needed.

(f) Each vendor's catalogue shall:

(1) Conform to requirements set forth in Texas Government Code, §2157.066 and any other requirements established by the commission.

(2) be maintained on a website in accordance with subsection (l) of this section and include indexing and keywords consistent with the commission's web catalogue guidelines. The vendor's catalogue maintained on the website and in compliance with this rule shall be the official version of the catalogue.

(g) A vendor designated as a QISV shall be notified of the designation by the commission. Once designated as a QISV, the vendor shall maintain a catalogue listing all products and services available for purchase and shall make the same available to qualified ordering entities upon request at no cost.

(h) The director shall promulgate guidelines for the revision process of a vendor's catalogue.

(i) Failure of a vendor to remain active on the CMBL, or failure to conform to any other commission rules may result in suspension or removal of QISV status. A vendor that has been suspended or removed may not market or sell products or services from its QISV catalogue to the state until the cause of the suspension or removal has been resolved.

(j) The vendor shall retain all records related to any business transaction under the catalogue purchase procedure for automated information systems for five years from the date of the purchase order. The records shall be provided upon request to the commission or the actual purchaser.

(k) Preference shall be given to QISV's who sell or lease products in Texas in accordance with provisions of the Texas Government Code, §2155.4441.

(l) The QISV vendor is encouraged to:

(1) use, produce, or provide products that contain recycled or remanufactured content, are environmentally sensitive, or possess energy saving features;

(2) identify recycled or remanufactured products and if possible, include the percentage of the total product that is recycled or remanufactured and/or the percentage of the total post-consumer recycled material content in its product literature or other representations; and

(3) use recycled/recyclable paper if printing a catalogue.

(m) The State of Texas is committed to assisting historically underutilized businesses (HUBs) to receive a portion of the total value of all contracts that an agency will award. If the vendor qualifies as a HUB, but is not certified by the State of Texas as such, the vendor should contact the commission to obtain a HUB certification application. Upon the request of a governmental entity, the vendor will be required to detail the amount of expenditures that have been made to material suppliers and subcontractors that are Texas certified HUBs. A vendor that has demonstrated past HUB participation is still expected to provide documentation using the reporting forms provided by a governmental entity to show its good faith effort in meeting or exceeding the state's procurement utilization goals identified in TBPC's [ GSC's ] HUB Rules (1 TAC §111.14).

(n) Once the process for utilizing URL's has been established and is operational, the TBPC [ GSC ] will create deadlines whereby all QISV's must provide and maintain their URL.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

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

TRD-200203079

Juliet King

Legal Counsel

Texas Building and Procurement Commission

Earliest possible date of adoption: June 30, 2002

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


Subchapter F. VENDOR PERFORMANCE AND DEBARMENT PROGRAM

1 TAC §113.102

The Texas Building and Procurement Commission proposes amendment to Title 1, T.A.C., §113.102 concerning Vendor Performance and Debarment. The amendment updates statutory references and modifies an existing rule under the provisions of Texas Government Code §§2155.070 and 2155.077 to allow the administrative removal of a vendor's name from the commission's Centralized Master Bidders List. The amendment also provides the Director of the Procurement Division with the delegated authority to determine vendor debarment. Language has been added pursuant to the Texas Government Code, §2155.077, for "failure to pay assessed damages" as one of the factors that may result in a vendor debarment action. The amendment will also add clarifying language to more precisely state requirements contained in the existing rule.

Ms. Cindy Reed, Deputy Executive Director of Administration and Procurement, has determined for the first five year period the rules are in effect there will be no fiscal implication for the state or local governments as a result of implementing vendor debarment rules. An indirect, positive fiscal implication may be experienced because vendors with records of non-performance may be removed for the commission's bid list and barred from participating in state contracts for periods commensurate with the seriousness of the vendor's action and damage to the state's interests.

Ms. Cindy Reed, Deputy Executive Director of Administration and Procurement, further determines that for each year of the first five-year period the amendment is in effect, the public benefit anticipated as a result of the revision to the vendor performance and debarment rule will be compliance with the current statutory requirements of Texas Government Code, §§2155.070 and 2155.077. There will be no effect on large, small or micro-businesses. There is no anticipated economic costs to persons who are required to comply with this rule and there is no impact on local employment. Comments on the proposals may be submitted to Juliet King, Legal Counsel, Texas Building and Procurement Commission, P.O. Box 13047, Austin, TX 78711-3047. Comments must be received no later than thirty days from the date of publication of the proposal to the Texas Register.

The amendments to §113.102 are proposed under the authority of the Texas Government Code, Title 10, Subtitle D, §§2152.003, 2155.070 and 2155.077 which provides the Texas Building and Procurement Commission with the authority to promulgate rules necessary to implement the sections.

The following codes are affected by these rules: Texas Government Code, Title 10, Subtitle D, §§2152.003, 2155.070 and 2155.077.

§113.102.Vendor Performance and Debarment.

(a) The commission may debar a vendor for a period that is commensurate with the seriousness of the vendor's action and the damage to the state's interest and may administratively remove a vendor's name from the commission's Centralized Master Bidders List for the same period. If complaints resume after the vendor is reinstated on the bidders list, the Director of the Procurement Division [ Central Procurement Services ] will re-evaluate the vendor's current performance and make a determination of the vendor's standing at that time.

(b) The Director of the Procurement Division [ Central Procurement Services ] shall adopt a measurement system to evaluate a vendor's past performance as an indicator of a vendor's ability to perform under a state contract for purchases or other acquisitions under Government Code, Chapters 2155-2158:

(1) As a minimum, the number and severity of a vendor's performance problems in relation with volume of goods or services provided, the effectiveness of corrective actions taken by the vendor, and the age and relevance of past performance information at the time it is used shall be considered;

(2) Firms lacking relevant past performance history shall receive a neutral evaluation for past performance in state contracting except as provided for in subsection (d) of this section.

(c) The Director of the Procurement Division [ Central Procurement Services ] shall establish standard policies and procedures for vendor performance criteria used in the evaluation of delegated and non-delegated purchases. In the evaluation process for delegated purchases, agencies must accurately document the vendor performance criteria used in determining the successful bidder or offeror.

(d) The Director of the Procurement Division is delegated authority to determine vendor debarment.

(e) [ (d) ] When in the best interest of the State, a business entity or a successor-in-interest may be debarred for any of the following:

(1) A history of unsatisfactory performance of a contract, or a history of failure to perform contracted services.

(2) Stating an unwillingness to honor a binding bid.

(3) Knowingly and intentionally supplying false information in order to appear responsive to a solicitation, to obtain a contract, or to qualify for a bid preference.

(4) Knowingly and intentionally conferring or offering to confer any gift, gratuity, favor, or advantage, present or future, upon any employee of a state agency who exercises any official responsibility for an acquisition.

(5) Conviction of any felony charge of fraud, bribery, collusion, conspiracy, federal or state antitrust laws, or other criminal offense in connection with the bidding upon, award of, or performance of any contract for goods and services with any state agency.

(6) Violation of state ethic laws.

(7) Failure to comply with terms and conditions of existing contracts.

(8) Notice of debarment activities from other governmental entities.

(9) Any cause indicating that the individual or firm is not a responsible vendor.

(10) Failure to pay assessed damages.

(f) [ (e) ] A proposed debarment may include all known successors-in-interest of a business entity. Each proposed decision to debar a vendor and/or successors-in-interest shall be made on a case-by-case basis after consideration of relevant facts and circumstances. A proposal to debar a vendor shall be delivered in writing to the vendor, stating the reason therefore. Vendor shall be given 10 working days to respond. Debarment may [ does ] not relieve the vendor of responsibility for existing contractual obligations with the state. The commission shall establish procedures to ensure due process to vendors in the debarment process.

(1) Vendors subject to a proposed debarment may submit a written appeal to the Director of the Procurement Division [ Central Procurement Services ] within 10 days following notification of the proposed debarred status.

(2) No person who has a direct interest in the outcome of the appeal may communicate directly or indirectly upon the merits of debarment with any commission employees without notice and approval of the Director of the Procurement Division [ Central Procurement Services ].

(g) [ (f) ] The commission and state agencies shall ensure that debarred vendors do not participate in state contracting. Any exclusion from state contracting due to debarment shall extend to all state contracting and subcontracting within the jurisdiction [ supervision ] of state agencies.

(h) [ (g) ] State agencies shall report poor or exceptional vendor [ a vendor's ] performance on any purchases of $25,000 or more from contracts established [ administered ] by the commission and other purchases made through an agency's delegated authority in accordance with the procedure [ policy ] guidance contained in the Commission's Procurement Manual.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

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

TRD-200203080

Juliet King

Legal Counsel

Texas Building and Procurement Commission

Earliest possible date of adoption: June 30, 2002

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