TITLE 1.ADMINISTRATION

Part 4. OFFICE OF THE SECRETARY OF STATE

Chapter 73. STATUTORY DOCUMENTS

Subchapter D. STATEMENT OF OFFICER FORMS

1 TAC §73.43, §73.44

The Office of the Secretary of State proposes amendments to Subchapter D concerning Statement of Officer Forms by amending §73.43 and §73.44. The purpose of the amendments is to conform the procedure for executing the Statement of Officer ("Statement") to the requirements of Section 1, Article XVI of the Texas Constitution. The amendments also update the language in §73.43 and §73.44 to indicate that, pursuant to amendments to Section 1 of Article XVI, there is only one Statement form.

The referenced Section 1 of Article XVI simply requires that an elected or appointed state officer "subscribe" to the Statement, and file the signed Statement with the Secretary of State. The language in Section 1 does not require that the Statement be subscribed to before a person authorized to administer oaths. An advisory opinion letter, dated September 18, 2002, from the Office of the Texas Attorney General agrees that there is no requirement that the Statement be subscribed to before a person authorized to administer oaths.

Guy Joyner, Chief, Legal Support Unit, Statutory Documents Section has determined that for the first five year period that the rule is in effect there will be no fiscal implications for state or local government as a result of enforcing the amendment. There is no effect on large businesses, small businesses or micro-businesses. There is no anticipated additional economic cost to individuals who are required to comply with the amendment as proposed. There is no anticipated impact on local employment.

Mr. Joyner also has determined that for each year of the first five years that the amendments are in effect the public benefit anticipated as a result of enforcing the amendment will be to make the procedure for subscribing to the Statement consistent with the procedure required by the Constitution. It will also simplify the process for the filing of the Statement.

Comments on the proposed amendments may be submitted to Guy Joyner, Chief, Legal Support Unit, Statutory Documents Section, P.O. Box 12887, Austin, Texas 78711-2887.

The amendments are proposed under the Texas Government Code, §2001.004(1) which provides the Secretary of State with the authority to prescribe and adopt rules.

The amendment affects the Texas Constitution, Section 1, Article XVI.

§73.43. Facsimile Transmission of a Statement of Officer Form.

The Office of the Secretary of State will accept a properly executed legible facsimile (FAX) copy of the [ appropriate ] signed statement of officer form required by Vernon's Annotated Texas Constitution, Article 16, §1(b) [ or (d) ]. The facsimile copy eliminates the requirement to file the original [ originally ] signed instrument with this office.

§73.44.Statement of Officer Form [ Forms ].

(a) The Office of the Secretary of State hereby adopts by reference the statement of [ elected ] officer [ and the statement of appointed officer ] form [ forms ]. A [ Blank ] sample copy [ copies of each ]of the form [ forms ] may be obtained from the Office of the Secretary of State, Statutory Documents Section, P.O. Box 12887, Austin, Texas 78711-2887. A copy of the form is also available on the Secretary of State's Internet site.

(b) All persons required to file the [ either of these ] statement [ statements ] shall use the [ appropriate ] form or a document which shall contain the following information: the [ applicable ] constitutionally required language with the person's [ affiant's ] typed or printed name, the person's [ affiant's ] signature, the specific office elected or appointed to, and the city and county where the office is located.

[(c) The statement of officer form will be executed before an officer authorized to administer oaths.]

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 December 20, 2002.

TRD-200208479

Geoffrey S. Connor

Assistant Secretary of State

Office of the Secretary of State

Earliest possible date of adoption: February 9, 2003

For further information, please call: (512) 475-0775


Part 5. TEXAS BUILDING AND PROCUREMENT COMMISSION

Chapter 113. PROCUREMENT DIVISION

Subchapter A. PURCHASING

1 TAC §113.18

The Texas Building and Procurement Commission proposes amendments to the Texas Administrative Code, Title 1, Part 5, Chapter 113, Subchapter A, §113.18 (relating to the Auditing of Purchase Documents and Payment Vouchers). The proposed amendments will clarify the commission's audit parameters and sample selection methods relating to purchase payment vouchers. In addition, this amendment will allow TBPC the flexibility to utilize the most effective and efficient sample methods available.

Janet Hasty, Procurement Programs Manager, has determined for the first five year period the rule is in effect, there will be no adverse effect to state or local government as a result of enforcing the rule. However, a cost savings will be realized as a result of this rule change. By utilization of new and improved sampling methods, agencies will be able to submit significantly fewer documents for a post payment audit while still maintaining the validity of the sample.

Ms. Hasty, 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 clarity and consistency. There will be no effect on small, large or micro businesses and/or persons.

Comments on the proposal may be submitted to William F. Warnick, General Counsel, Texas Building and Procurement Commission, P.O. Box 13047, Austin, Texas 78711-3047. Comments must be received no later than 30 days from the date of publication of the proposal in the Texas Register.

The amendments to 1 TAC §113.18 are proposed under the authority of the Texas Government Code, Title 10, Subtitle D, §2152.003 which provides the Texas Building and Procurement Commission with the authority to promulgate rules necessary to implement the sections.

The are no other codes that are affected by the rule.

§113.18.Auditing of Purchase Documents and Payment Vouchers.

(a) General. The commission audits payment vouchers and the associated purchasing documents which established the basis for the claim for payment from state appropriated funds in accordance with Government Code, Title 10, Subtitle D, §2155.324.

(b) Auditing procedure. The commission audits purchasing data for compliance with applicable statutes and rules of the commission. The commission may audit either 100% of State of Texas purchase vouchers and associated purchase documentation of any agency, a sampling of all documents, or may audit only specific types of purchases. The commission may determine the extent and method of audits to be performed. [ The commission may perform audits at the 100% level or may use a statistical random sample and the samples may be stratified. The sampling selection process may be stratified by dollar amounts or other parameters. These random sample audits may be performed prior to (pre-payment audits) or after (post-payment audits) the vouchers are paid by the Comptroller of Public Accounts. ] Each agency will be audited at least once in each state fiscal biennium. Agencies will be required to furnish copies of purchase documents to the commission for these audits as needed. Audits may be performed at the agency site or remotely.

(c) Auditing parameters.

[ (1) ] For 100% audits or random sample audits of delegated and non-delegated purchases, the results must be at or above the 90% compliance level for each agency.

[(2) For the random sample audits, delegated and non-delegated purchases, the results must be within the following parameters:]

[(A) minimum confidence level--90%;]

[(B) maximum error level--10%;]

[(C) minimum sample size--10 per agency and 10 per Purchase Category Code;]

[(D) period of time--monthly, quarterly, semiannual, annual, or biennial; and]

[(E) selection of sample--may be by table of random numbers or any other interval method.]

(d) Agency notification. The commission will send results of these audits to the agency head, agency's directors of purchasing, and fiscal and/or business manager. If the results are not within the established parameters, the agency will be offered support and assistance to maintain an acceptable level of compliance. Agencies will be given a period of six months to bring their purchasing compliance within the established parameters. If the results of a second (follow-up) audit still do not meet the parameters, then delegation of authority for some or all purchase categories may be suspended.

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 December 23, 2002.

TRD-200208514

William F. Warnick

General Counsel

Texas Building and Procurement Commission

Earliest possible date of adoption: February 9, 2003

For further information, please call: (512) 463-3583