TITLE 34. PUBLIC FINANCE

Part 1. COMPTROLLER OF PUBLIC ACCOUNTS

Chapter 20. TEXAS PROCUREMENT AND SUPPORT SERVICES

Subchapter C. PROCUREMENT

34 TAC §20.52

The Comptroller of Public Accounts (comptroller) proposes an amendment to §20.52, concerning advisory committees. This section is being amended to implement House Bill 3560, 80th Legislature Session, 2007, and Government Code, §§2155.080, 2155.081, and 2110.005.

House Bill 3560, §1.06, transferred procurement duties of the former Texas Building and Procurement Commission to the comptroller, including those duties in Government Code, Chapter 2155. Government Code, §2155.080, authorizes the comptroller to establish an advisory committee on procurement. The purpose of the advisory committee on procurement is to represent before the comptroller the state agency purchasing community and the political subdivisions that use the comptroller's purchasing services. Government Code, §2155.081, authorizes the comptroller to establish a vendor advisory committee. The purpose of the vendor advisory committee is to represent before the comptroller the vendor community, to provide information to vendors, and to obtain vendor input on state procurement practices. Government Code, §2110.005, requires a state agency that establishes an advisory committee to state in a rule the purpose and tasks of the committee and the manner in which the committee will report to the agency.

The comptroller is proposing an amendment to these rules to establish these committees as advisory committees to the comptroller, to clarify the purpose and tasks of these committees, and to clarify the comptroller's new role with respect to these committees.

Subsection (a) is being amended to clarify the role of the comptroller in establishing the advisory committees and the applicability of Government Code, Chapter 2110. Subsection (b) is being amended to clarify the functions of the committees, the role of the Director of Texas Procurement and Support Services (TPASS), and the duration of the committees. Subsection (c) is being amended to clarify the purpose, tasks, and composition of the advisory committee on procurement. Subsection (d) is being amended to clarify the purpose, tasks, and composition of the vendor advisory committee.

John Heleman, Chief Revenue Estimator, has determined that, for the first five-year period the rule proposal will be in effect, there will be no significant revenue impact on the state or units of local government.

Mr. Heleman also has determined that, for each year of the first five years the rule proposal is in effect, the public benefit anticipated as a result of enforcing the rule will be by consolidating certain state procurement and support services within the comptroller's office, complementing the comptroller's current state fiscal responsibilities. The proposed amendment would have no significant fiscal impact on small businesses. There is no significant anticipated economic cost to individuals who are required to comply with the proposed rule.

Comments on the proposal may be submitted to Skip W. Bartek, Texas Procurement and Support Services, Comptroller of Public Accounts, P.O. Box 13528, Austin, Texas 78711.

This amendment is proposed under Government Code, §2155.080 and §2155.081, which authorize the comptroller to establish the advisory committees; Government Code, §2110.005, which provides that a state agency that establishes an advisory committee shall adopt rules outlining the purpose and tasks of the committee; Government Code, §2152.003, which authorizes the Texas Building and Procurement Commission (and now the comptroller) to adopt rules to administer Subtitle D (State Purchasing and General Services) of Title 10, Government Code; House Bill 3560, §1.01 (amending Government Code, §2151.003), which provides that a statutory reference to the Texas Building and Procurement Commission means the comptroller in all circumstances except where the provision relates to state buildings, grounds or property, or as otherwise provided by law; and House Bill 3560, §1.06 (adding Government Code, §2155.0011) which provides that the powers and duties of the Texas Building and Procurement Commission under Government Code, Chapter 2155, are transferred to the comptroller.

The proposed amendment implements Government Code, §2155.080 and §2155.081.

§20.52.Advisory Committees.

(a) The comptroller establishes 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 applicable 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) Advisory committees [ An advisory committee ] in subsections (c) and (d) of this section are authorized [ required ] to carry out the following functions:

(1) Establish their [ its ] own rules of operation.

(2) The Director of Texas [ the ] Procurement and Support Services (TPASS) [ Division ] shall establish the size of the advisory committee , with the approval of the comptroller .

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

(4) Annually, the Director of TPASS [ 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 comptroller [ Director of the Procurement Division ] shall be abolished on the fourth anniversary of the first meeting of the advisory committee,

(A) unless the comptroller acts [ governing body of the advisory committee votes ] to continue or re-establish the committee in existence, and

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

(7) If the comptroller acts [ governing body of an advisory committee votes ] to continue or re-establish the committee's existence, it shall continue to exist for an additional four year [ until the fourth anniversary date of the first meeting of its new ] term. Comptroller action to continue or re-establish a committee may include, without limitation, issuing a letter appointing or re-appointing committee members to an additional term.

(c) The Advisory Committee on Procurement shall be composed of officers or employees from the comptroller [ commission ], from state agencies, including institutions of higher education, and from political subdivisions who are invited by the comptroller [ 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 is to represent before the comptroller the state agency purchasing community and the political subdivisions that use the comptroller's purchasing services. The tasks of the committee are [ shall be ] to:

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

(2) review issues brought forth by the comptroller [ 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 future direction of the committee at the end of each fiscal year.

(d) The Vendor Advisory Committee shall be composed of employees from the comptroller [ commission ] and vendors who have done business with the state, and who are invited by the comptroller [ commission ] to serve on the committee. The comptroller [ 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 is to represent before the comptroller the vendor community, to provide information to vendors, and to obtain vendor input on state procurement practices. The tasks of the committee are [ shall be ] to:

[ (1) represent the vendor community before the commission;]

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

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

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

(3) [ (5) ] participate in an annual review of the committee's activities and make recommendations about the future 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 February 4, 2008.

TRD-200800669

Martin Cherry

General Counsel

Comptroller of Public Accounts

Earliest possible date of adoption: March 16, 2008

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