TITLE 34.PUBLIC FINANCE

Part 1. COMPTROLLER OF PUBLIC ACCOUNTS

Chapter 5. FUNDS MANAGEMENT (FISCAL AFFAIRS)

Subchapter E. CLAIMS PROCESSING--PURCHASE VOUCHERS

34 TAC §5.54

The Comptroller of Public Accounts adopts amendments to §5.54, concerning consulting services contracts, without changes to the proposed text as published in the March 31, 2006, issue of the Texas Register (31 TexReg 2827).

The primary purpose of the amendments is to conform §5.54 to the changes made to the consulting services statutes during recent legislative sessions.

During the 75th Legislature, 1997, Senate Bill 645 raised the threshold for determining whether a consulting services contract is a "major consulting services contract."

During the 76th Legislature, 1999, Senate Bill 176 amended the consulting services statutes to require a state agency to notify the Legislative Budget Board in writing after the agency contracts for consulting services if the amount of the contract, including any amendment, modification, renewal, or extension, exceeds $14,000. Any failure to comply with this requirement renders the contract void.

During the 76th Legislature, 1999, House Bill 3211 extended to twenty days the deadline for a state agency's filing of certain information with the secretary of state after the agency renews, amends, or extends a major consulting services contract. The bill also deleted the authorization for a state agency to make payments under a consulting services contract that violated certain procedural requirements of the consulting services statutes after the agency cured the violation.

During the 78th Legislature, 2003, Senate Bill 1652 amended the consulting services statutes so that an institution of higher education's consulting services contract is categorized as a "major consulting services contract" only if the value of the contract exceeds $25,000. The bill also exempted an institution's major consulting services contract from the requirement to obtain a finding of fact from the governor's Budget and Planning Office if the institution includes in its invitation for offers both a finding of necessity by the institution's chief executive officer and an explanation of that finding.

The second purpose of the amendments is to require a state agency to provide the comptroller upon request with a reference to the pages in the Texas Register that demonstrate the agency's compliance with certain publication requirements concerning consulting services contracts.

The third purpose of the amendments is to delete provisions that merely repeat the consulting services statutes.

The fourth purpose of the amendments is to change the supporting documentation requirements that apply when a payment is made under a consulting services contract.

The final purpose of the amendments is to make several non-substantive or technical improvements to §5.54.

No comments were received regarding adoption of the amendment.

The amendments are adopted under Government Code, §2254.039(a), which requires the comptroller to adopt rules to implement and administer Government Code, Chapter 2254, Subchapter B.

The amendments implement Government Code, Chapter 2254, Subchapter B.

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 May 17, 2006.

TRD-200602774

Martin Cherry

Chief Deputy General Counsel

Comptroller of Public Accounts

Effective date: June 6, 2006

Proposal publication date: March 31, 2006

For further information, please call: (512) 475-0387