Part I.
Office of the Governor
Chapter 3.
Criminal Justice Division
Subchapter E. Crime Stoppers Program Certification
1.
Crime Stoppers Program Certification
1 TAC §§3.9000, 3.9100, 3.9200
The Crime Stoppers Advisory Council within the Criminal Justice
Division of the Office of the Governor adopts new Subchapter E, Crime Stoppers
Program Certification, §§3.9000, 3.9100, and 3.9200 without changes
to the proposed text published in the June 4, 1999 issue of the
Texas Register
(24 TexReg 4091).
This subchapter clearly identifies, defines, and provides information on
important policies, community planning, application submission guidelines,
budget information, grant administration guidelines, program monitoring and
auditing, funding sources, advisory boards, governing directives, and other
relevant statutes.
No comments were received regarding adoption of the new rules.
The new rules are adopted under Texas Government Code, Title
3, §414.006. which provides the Crime Stoppers Advisory Council the authority
to promulgate rules consistent with the Code.
No other statutes, articles or codes are affected by these adopted rules.
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 August
6, 1999.
TRD-9904870
James Hines
Assistant General Counsel
Office of the Governor
Effective date: August 26, 1999
Proposal publication date: June 4, 1999
For further information, please call: (512) 475-2594
Chapter 113.
Central Purchasing Division
Subchapter A. Purchasing
1 TAC §113.15
The General Services Commission adopts the repeal of Title
1, T.A.C., §113.15 concerning invoicing and payment without changes to
the proposed repeal as published in the May 21, 1999, issue of the
Texas Register
(24 TexReg 3811).
The repeal is adopted in order to adopt new rules under Title 1, T.A.C.,
Chapter 114 concerning Payment of Goods and Services which contains language
in accordance with the Texas Government Code, Chapter 2251 - Payment for Goods
and Services.
HOW THE SECTION WILL FUNCTION. The repeal of §113.15 will delete obsolete
language and allows for the adoption of new more efficient rules relating
to the Texas Government Code, Chapter 2251 - Payment for Goods and Services.
No comments were received regarding the repeal of §113.15.
The repeal of §113.15 is proposed under the authority of
the Texas Government Code, Title 10, Subtitle F, Chapter 2251, §2251.003.
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 August
6, 1999.
TRD-9904851
Judy Ponder
General Counsel
General Services Commission
Effective date: August 26, 1999
Proposal publication date: May 21, 1999
For further information, please call: (512) 463-3960
Subchapter A. Purchasing
1 TAC §§114.1, 114.3, 114.5, 114.7, 114.9
The General Services Commission adopts amendments to Title
1, T.A.C., Chapter 114, §§114.1, 114.3, 114.5, 114.7, and 114.9
concerning Payment of Goods and Services, with changes to the proposed text
as published in the May 21, 1999, issue of the
Texas
Register
(24 TexReg 3811).
The new rules adopted under Title 1, T.A.C., Chapter 114, are in compliance
with the Texas Government Code, Chapters 2155 and 2251 and the Government
Code, §403.15. They will provide definitions and invoicing standards
for vendors doing business with the State of Texas in order to facilitate
prompt payment.
In §114.1 the proposed definitions for "bona-fide dispute" and "disputed
payment" have been modified. The proposed definitions for "committee" and
"goods" have been removed and a definition for "invoice" has been added to
the adopted text.
Proposed subsection (c) of §114.3 concerning the applicability of
Government Code, Chapter 2251 has been removed from the adopted text
The second sentence of proposed §114.5(a) concerning invoicing standards
has been modified; and proposed §114.5(c) has been modified to clarify
language.
A new subsection (d) has been added to the adopted text for §114.5
concerning partial payments. Proposed subsection (d) has been changed to §114.5(e)
and language has been added to read "Invoices, vouchers, and payments subject
to pre-payment audit by the commission..." In paragraph §114.5(e)(1)
of the adopted text, the number of calendar days has been changed to "8".
In §114.7 - Payments, language in proposed subsections (c)(d) and
(e) have been modified to improve clarity, and language in the proposed subsections
(g) and (h) have been removed in the adopted text. A time period of "30 days"
has been added to the adopted text of subsection (f) to read "partial payment
made within the 30 day period ..." New language has been added to the adopted
subsection (g) concerning transitional provisions in the prompt pay law.
Reference made in the proposed language of §114.9(c) to §114.7(h)
has been changed to §114.7(f).
The new rules adopted under Title 1, T.A.C., Chapter 114 will create more
efficient processes that will result in reduced mail and paper costs by the
use of the electronic transfer fund system to pay vendors. The payment process
has also been accelerated.
Two written comments were received from the Comptroller of Public Accounts
and Texas A&M University System. Two written comments were also submitted
by the Texas Natural Resource Conservation Commission. All entities had comments
about various aspects of the rules. A summary of the comments and the General
Services Commission's responses follow:
Comptroller of the Public Accounts Comments on the Proposed Rules:
Definition of "Services" for Prompt Pay purposes. The proposed rule repeats
the definition of "services" found at §2155.001(2)(D), Texas Government
Code, and reconciles the exception to the public utility exemption contained
in §2155.001, Texas Government Code. The commenter disagrees that the
definition of services from §2155.001, Texas Government Code, is correctly
used in this rule. Further the commenter argues that specific legislative
history for prompt pay act renders the idea of an exclusion for certain types
of utility payments unnecessary.
GSC Response: Given that the Legislature has provided several definitions
of "services" in Texas Civil Statutes and Codes, the Commission will not offer
a definition. Further, the Commission will delete from the proposed rules
all definitions which merely repeat the statutes. The only definitions to
be promulgated will be those not found in statute. Users of these rules should
rely on the statutory definitions of terms.
Formation of the Payment of Goods and Services Committee. The commenter
indicates that the Comptroller would not be interested in participating with
GSC a committee designed to answer questions about prompt pay.
GSC Response: The provision for the Committee has been deleted.
Comptroller has jurisdiction over portions of prompt pay law. The commenter
suggests that the law which becomes effective September 1, 1999, gives the
Comptroller exclusive authority for rules under §2251.026(f), (text effective
September 1, 1999).
GSC Response: Proposed rule §114.7(f) and (g) have been deleted.
Need transitional provisions from 1997 amendments to prompt pay law. The
commenter suggested that the transition rule in the 1997 amendments to the
prompt pay law should be included in the GSC rule.
GSC Response: A new subsection §114.7(g) shall set forth the transitional
rule.
Definition of "disputed payment." The commenter suggests that certain provisions
of proposed rule §114.1(4) are without authority for GSC to promulgate.
GSC Response: GSC respectfully disagrees. GSC is given authority to promulgate
rules to implement Chapter 2251. Further, GSC has authority to establish invoice
standards at §2155.381(b), Government Code. The most efficient and effective
method for reducing the potential for disputes or errors in invoices is to
establish minimum informational standards to ensure swift and accurate handling
of the invoice. Therefore, GSC establishes invoicing standards, which, in
turn, form the basis of a disputed payment should the vendor fail to follow
them. Another basis for disputing an invoice is if it is submitted in a timeframe
that is not allowed under the related contract or purchase order. For example,
a vendor sends an invoice for 50% payment when the contract only authorizes
a single payment at completion of all work. The untimely submission of the
invoice would be an "error", or the basis for a "disputed payment" under the
law.
Drafting issues. The commenter is concerned with the use of the term "title"
instead of "chapter" in the introduction to proposed §114.1.
GSC Response: Concur. Changes have been made. Revised definition of "bona
fide dispute" to delete "factually based."
GSC Response: Concur and revisions have been made in proposed adopted rules.
Use of "state agency" and "governmental entity". The commenter suggests
GSC uses these two terms in a confusing manner.
GSC Response: Disagree. In developing the rules, GSC followed the use of
the terms as they appeared in the statute. "Governmental entity" is defined
at §2251.001, Government Code. GSC will rely on the statutory definition
for proper implementation of its rules.
Transitional Phrases. The commenter is concerned with the use of phrases
"until August 31, 1999" and "after September 1, 1999" in certain subsections
of §114.7.
GSC Response: Proposed §114.7(g) is being deleted. See above comment
regarding the "Comptroller has jurisdiction over portion of prompt pay law".
Proposed §114.7(d) and (e) have been modified to clearly articulate the
transitional rule from the 1997 amendments to the prompt pay law. Also, adopted
rule §114.7(g) clearly sets out the transitional rule.
Texas Natural Resource Conservation Commission Comments Invoice presented
for payment. The commenter wants to know what is an "invoice presented for
payment".
GSC Response. GSC will promulgate a definition of invoice. See Rule §114.1
(4).
Definition for "services". The commenter suggests amendments to the definition
of "services".
GSC Response. GSC deletes the definitions for services because the term
is defined in statute.
Application of law. The commenter asks if state agencies are exempt from
prompt pay. The commenter also asks if the prompt pay law applies to "local
funds."
GSC Response. The prompt pay law applies to state agencies. The prompt
pay law does not have an exemption for "local funds."
Original Invoices. The commenter asks if an original invoice is needed
for payment. The commenter also asks if an invoice must be entitled "invoice"
in order to be paid.
GSC Response. The answer to both questions is no. See definition for invoice
at Rule §114.1(4).
Invoice Information. The commenter objects to the many specific items of
information that proposed rule §114.5 listed as mandatory minimum items
of information to be included on an invoice.
GSC Response. Based on these objections, GSC has promulgated the final
rule as suggestive of the types of information agencies may want to consider
requiring on invoices from vendors. The flexibility of a suggested list of
items should allow agencies to require only that information which will allow
for efficient handling of invoices.
Allocation of time. The commenter inquires about how the 30 days allowed
are divided between commission processing, Comptroller processing and program/agency
processing.
GSC Response. This portion of the rule addresses the internal processing
schedule among state agencies, as established in Subchapters F and G of Chapter
2155, Government Code. The Commission has 8 days to complete a pre-payment
audit. The Comptroller is given 8 days to process a warrant after receipt
of all necessary information. Rule §114.5(d)(3) has been modified to
reflect the statutorily prescribed time frame.
When is interest due. The commenter asks whether §114.7(a) functions
to require payment of interest after a payment is made.
GSC Response. The proposed language has been modified to clarify intent;
however, interest stops accruing on the date a warrant is postmarked or electronically
transmitted. The language does not call for interest to accrue after a payment
is made.
Thirty days and 11 day conflict. The commenter is confused between the
30 days given for payments to vendors under §114.7(b), and the 11 days
for an agency to send information to the Comptroller, set out in §114.5(d)(3).
GSC Response. See response to comment 5. Rule §114.5(d) reflects the
rules governing how the 30 days are allocated between the commission, the
Comptroller and the state agency seeking to process payment to a vendor.
Consistency of §114.7(c). The commenter is confused by the proposed
language of §114.7(c).
GSC Response. The language has been modified to increase clarity.
Define "state employee." The commenter recommends adding a definition of
state employee which would include personnel from various political subdivisions
and other contracted vendors.
GSC Response. Disagree. First, in response to other comments, the Commission
will only be promulgating definitions that are not in statute already. Therefore,
"state employee" as a term will not be defined by the commission. Second,
the Commission would not undertake to define the term "state employee" to
include categories of employees who clearly are not state employees.
Insufficient processing time. The commenter is concerned that the deadline
for submission of information to the Comptroller under proposed §114.5(d)(3)
is too short and suggests 21 days as the deadline. The commenter further suggests
that state agencies be given 21 days before processing information to the
commission and Comptroller to align the time with the 21 day deadline found
in §114.9.
GSC Response. Disagree. The deadlines for submission to both the commission
and the Comptroller are established in statute. See Subchapters F and G, Chapter
2155, Government Code.
State agencies are encouraged to immediately notify vendors of errors in
invoices. Given the structure of the proper processing of invoices, a state
agency will determine the correctness of an invoice before forwarding for
payment, e.g., day eleven or so of the 30 days allowed.
Texas A&M University System comments:
Application of exemption. The commenter asks if §114(a)(3) applies
to state, local or private contracts, grants, regulations or statutes.
GSC Response: The legislature has provided an exception only for the listed
transactions with federal funds.
Add/Delete items to invoice. The commenter suggests additional items to
be included in §114.5(a)(3), and that §114.5(a)(5) is too stringent.
GSC Response. The commission, in the final rules, amends §114.5 to
be a list of suggested items to be included in invoices, freeing state agencies
to customize the information to better serve their processes. The final rule
is permissive, not mandatory.
Insufficient processing time. The commenter seeks additional time for the
processing agency under proposed §114.5(d).
GSC Response. Concur. Language of proposed §114.5(d) has been modified
and is shown as §114.5(e) in the adopted rules.
Insufficient processing time. The commenter seeks a change to proposed
§114.5(d)(1) to maximize the days an originating agency has.
GSC Response. Concur. The days for Comptroller processing is altered in
the final rule to eight (8) days, as authorized in the Texas Government Code,
§2155.382(b), and appears as §114.5(e) in the adopted rules.
Conflict in provisions. The commenter thinks the directive to return incorrect
invoices immediately is incongruous with the 21 day deadline stated in §114.9(a).
GSC Response: GSC Disagrees. Incorrect invoices should be returned immediately.
If an agency does not notify a vendor of an error within the 21 days, the
error is waived. The 21 days is a deadline.
The new rules under Title 1, T.A.C., Chapter 114 are adopted
under the authority of the Texas Government Code, Title 10, Subtitle F, Chapter
2251, §2251.003.
§114.1. Definitions.
The following words and terms, when used in this Chapter, shall have
the following meanings, unless the context clearly indicates otherwise.
(1)
Bona-fide Dispute - a difference of opinion held in good
faith by a vendor and a governmental entity .
(2)
Commission - General Services Commission.
(3)
Disputed Payment - includes, but is not limited to
an invoice presented for payment
(A)
Which is not in compliance with the invoicing standards
in this chapter;
(B)
which is for nonconforming goods and services under the
related purchase order or contract; or
(C)
which is not presented in the time frame authorized by
the related purchase order or contract.
(4)
Invoice - a document presented by a vendor for
payment, which includes information necessary for payment processing, and
is received by mail, electronically or by facsimile transmission.
§114.3. Exceptions to Prompt Pay Process.
(a)
This Chapter does not apply to a payment made by a governmental
entity, vendor, or subcontractor if:
(1)
there is a bona fide dispute between the political subdivision
and a vendor, contractor, subcontractor, or supplier about the goods delivered
or the services performed that causes the payment to be late;
(2)
there is a bona fide dispute between a vendor and
a subcontractor or between a subcontractor and its supplier about the goods
delivered or the services performed that causes the payment to be late;
(3)
the terms of a federal contract, grant, regulation,
or statute prevent the governmental entity from making a timely payment with
federal funds; or
(4)
the invoice is not mailed to the person to whom it
is addressed in strict accordance with any instruction on the purchase order
relating to the payment.
(b)
This Chapter does not affect Chapter 2253, Government
Code, Public Work Performance and Payment Bonds.
§114.5. Invoicing Standards.
(a)
To receive payment, vendors must submit an invoice to
the state agency receiving the goods or services. The invoice should include,
but is not limited to including:
(1)
the vendor's mailing and e-mail (if applicable) address;
(2)
the vendor's telephone number;
(3)
the name and telephone number of a person designated
by the vendor to answer questions regarding the invoice;
(4)
the state agency requisition number;
(5)
the state agency's name, agency number, and delivery
address;
(6)
the commission's purchase order number, if applicable;
(7)
the contract number or other reference number, if
applicable;
(8)
a valid Texas identification number (TIN) issued
by the Comptroller of Public Accounts;
(9)
a description of the goods or services, in sufficient
detail to identify the order which relates to the invoice;
(10)
unit numbers corresponding to the original order;
and
(11)
other relevant information supporting and explaining
the payment requested or identifying a successor organization to an original
vendor, if necessary.
(b)
When a correct and complete invoice is received, the agency
shall date stamp the document and submit it for payment as prescribed by that
state comptroller's office and in accordance with the Uniform Statewide Accounting
System (USAS) User Manual, certifying that the goods or services were received
in accordance with the purchase order and that the invoice is correct and
properly payable. Incorrect or incomplete invoices should be immediately returned
to the vendor.
(c)
When satisfied that the payment is correct, the commission
will approve for payment those vouchers for which pre-payment auditing is
required on the USAS system.
(d)
Partial payments may be made for partial shipments.
(e)
Invoices, vouchers, and payments subject to pre-payment
audit by the commission will be processed according to the following schedule:
(1)
the originating agency must transmit electronically the
voucher to the comptroller no later than 8 calendar days after the later of:
(A)
the date the agency received the invoice from the vendor;
(B)
the date the agency received the supplies, material, or
equipment; or
(C)
the date on which the performance of services was completed.
(2)
In accordance with the Government Code, §2155.324,
the commission must electronically approve the voucher on pre-audit purchases
categories exceeding $25,000 for service contracts, emergency purchases, research
purchases and all lease payments on the USAS system no later than the eight
calendar day after receipt of the invoice and purchase information from the
originating agency.
(3)
The state comptroller must submit the payment to
the originating agency or mail the payment to the vendor (or electronically
transmit the payment to the vendor's financial institution) no more than 8
calendar days after receipt of the voucher from the commission pursuant to
the Government Code, §2155.382.
§114.7. Payments.
(a)
A payment is considered completed on the date it is postmarked
or on the date it is electronically transmitted to the vendor's financial
institution. This date is used to determine a timely payment.
(b)
Any payment owed by an agency must be mailed or transmitted
electronically to the vendor no later than 30 days after the later of:
(1)
the day on which the agency received the goods;
(2)
the date the performance of the service under the
contract is completed; or
(3)
the day on which the agency received the invoice
for goods or services.
(c)
Overdue payments will accrue interest at the rate of 1.0%
per month. If partial payment is timely made, the unpaid balance of a partial
payment will accrue interest as provided by this subsection.
(d)
Until September 1, 1999, under Acts of the 75th Legislature,
ch. 634, §4(a), 1997, codified under the Government Code, §2251.041,
a vendor must submit its claim for payment of accrued interest to the originating
agency no later than six months after the vendor's receipt of payment. Claims
accruing under this version of the statute which are submitted to the originating
agency after that time will not be honored. This subsection is subject to
subsection (g) of this section.
(e)
Until September 1, 1999, under Acts of the 75th Legislature,
ch. 634, §4(a), 1997, the originating agency shall process claims for
accrued interest by submitting the claim and a properly executed voucher directly
to the state comptroller in accordance with rules and procedures adopted by
the state comptroller. This subsection is subject to subsection (g) of this
section.
(f)
The unpaid balance of a partial payment made within the
30 day period provided by this section accrues interest as provided by subsection
(c) of this section unless the balance is in dispute.
(g)
By Acts of the 75th Legislature, ch. 634, 1997, the Texas
Legislature made amendments to the Government Code, Chapter 2251, §2251.026
and §2251.041, which amendments take effect September 1, 1999. Subsections
(d) and (e) of this section shall automatically terminate as of that effective
date. Thereafter, the Comptroller of Public Accounts has responsibility to
administer Government Code, §2251.026. Government Code, §2251.041
is repealed as of that date.
§114.9. Disputed Payments.
(a)
An agency shall notify a vendor of an error in an invoice
submitted for payment by the vendor not later than the 21st day after the
date the agency receives the invoice.
(b)
If a dispute is resolved in favor of the vendor, the vendor
is entitled to receive interest on the unpaid balance of the invoice submitted
by the vendor beginning on the date that the payment for the invoice is overdue.
(c)
If a dispute is resolved in favor of the agency, the vendor
shall submit a corrected invoice that must be paid in accordance with §114.7(b)
and (c) of this chapter. The unpaid balance accrues interest as provided by
§114.7(f) of this chapter if the corrected invoice is not paid by the
appropriate date.
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 August
6, 1999.
TRD-9904853
Judy Ponder
General Counsel
General Services Commission
Effective date: August 26, 1999
Proposal publication date: May 21, 1999
For further information, please call: (512) 463-3960
Chapter 355.
Medicaid Reimbursement Rates
Subchapter F. General Reimbursement Methodology for all Medical Assistant Programs
Part V.
General Services Commission
Chapter 114.
Payment for Goods and Services
Part XV.
Texas Health and Human Services Commission