TITLE 19. EDUCATION

PART 2. TEXAS EDUCATION AGENCY

CHAPTER 30. ADMINISTRATION

SUBCHAPTER BB. COMMISSIONER OF EDUCATION: PURCHASING AND CONTRACTS

19 TAC §30.2003

The Texas Education Agency (TEA) adopts new §30.2003, concerning auditing and monitoring performance for all contracts, including assessment instruments. The new section is adopted without changes to the proposed text as published in the February 10, 2017 issue of the Texas Register (42 TexReg 539) and will not be republished. The adopted new section implements the requirements of the Texas Government Code, §2261.253, as added by Senate Bill (SB) 20, 84th Texas Legislature, 2015, and the Texas Education Code (TEC), §39.0381, as added by SB 743, 84th Texas Legislature, 2015..

REASONED JUSTIFICATION. SB 20, 84th Texas Legislature, 2015, added Texas Government Code, §2261.253, which requires each state agency by rule to establish a procedure to identify each contract that requires enhanced contract or performance monitoring and submit the information to the officer who governs the agency. The statute also specifies that the agency's procurement director must notify the officer who governs the agency of any serious issue or risk that is identified as requiring enhanced monitoring.

SB 743, 84th Texas Legislature, 2015, added TEC, §39.0381, which requires the TEA by rule to develop a comprehensive methodology for auditing and monitoring performance under contracts for services to develop or administer assessment instruments to verify compliance with contractual obligations. Further, the TEA must ensure that all new and renewed assessment contracts include a provision that the agency or a designee of the agency may conduct periodic contract compliance reviews, without advance notice, to monitor vendor performance.

Adopted new 19 TAC §30.2003 implements the requirements of statute by establishing provisions for auditing and monitoring performance on all contracts awarded by the TEA, including contracts for assessment instruments. The adopted new section specifies that the TEA will conduct random reviews of contracts and that TEA staff must be granted access to certain tools related to monitoring the agency's assessment program. The adopted new section also outlines the training that will be provided to TEA staff for contract and performance monitoring. Finally, the adopted new section addresses provisions for enhanced contract and performance monitoring, including the responsibilities of TEA staff.

SUMMARY OF COMMENTS AND AGENCY RESPONSES. The public comment period on the proposal began February 10, 2017, and ended March 13, 2017. No public comments were received.

STATUTORY AUTHORITY. The new section is adopted under the Texas Government Code, §2261.253, which requires each state agency by rule to establish a procedure to identify each contract that requires enhanced contract or performance monitoring; and the Texas Education Code (TEC), §39.0381, which requires the Texas Education Agency by rule to develop a comprehensive methodology for auditing and monitoring performance under contracts for services to develop or administer assessment instruments required by TEC, §39.023, to verify compliance with contractual obligations.

CROSS REFERENCE TO STATUTE. The new section implements the Texas Government Code, §2261.253, and Texas Education Code, §39.0381.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 28, 2017.

TRD-201702492

Cristina De La Fuente-Valadez

Director, Rulemaking

Texas Education Agency

Effective date: July 18, 2017

Proposal publication date: February 10, 2017

For further information, please call: (512) 475-1497


CHAPTER 61. SCHOOL DISTRICTS

SUBCHAPTER AA. COMMISSIONER'S RULES ON SCHOOL FINANCE

19 TAC §61.1019

The Texas Education Agency (TEA) adopts an amendment to §61.1019, concerning school finance. The amendment is adopted without changes to the proposed text as published in the April 21, 2017, issue of the Texas Register (42 TexReg 2130). The adopted amendment aligns the issuance of additional state aid for ad valorem tax credits under the Texas Education Code (TEC), §42.2515, with Texas Tax Code, Chapter 313.

REASONED JUSTIFICATION. Pursuant to the Texas Tax Code, Chapter 313 (the Texas Economic Development Act), school districts may offer appraised value limitations on property and tax credits to certain capital-intensive industries that meet dollar and job creation requirements in order to encourage large-scale capital investments in Texas. School districts that have active agreements under the Texas Tax Code, Chapter 313, and that have companies subject to tax credits must net those credits against taxes paid.

The TEC, §42.2515, authorizes the commissioner to adopt rules to implement and administer the provision of additional state aid, including aid for school districts otherwise ineligible for state aid, in order to offset tax credits issued by school districts under the Texas Tax Code, Chapter 313.

Section 61.1019, Additional State Aid for Ad Valorem Tax Credits under the Texas Economic Development Act, implements the provisions of the TEC, §42.2515. Specifically, the rule addresses the procedures for filing a request for aid and describes the forms to be used to make a request for aid.

The adopted amendment updates subsections (d)(2)(D) and (d)(3)(B) to require school districts to provide to the TEA a copy of the tax bill sent to the taxpayer showing that the taxes imposed on companies with agreements under the Texas Tax Code, Chapter 313, are net of the tax credit (rather than requiring the company to pay full taxes and then issuing a reimbursement to the company in the amount of the tax credit). Other proof, such as documentation of a reimbursement check in the amount of the tax credit, will no longer be accepted. The adopted amendment aligns the issuance of additional state aid for ad valorem tax credits under the TEC, §42.2515, with Texas Tax Code, Chapter 313.

The adopted amendment also updates subsection (j) to remove the requirement for payments of additional state aid for ad valorem tax credits to be based on the schedule of monthly payments prescribed by the TEC, §42.259. This allows the payment of additional state aid for ad valorem tax credits to be delivered to school districts without consideration of the schedule, mitigating any cash flow issues created by the changes in subsections (d)(2)(D) and (d)(3)(B).

In addition, technical edits were made to remove information relating to dates that have passed and correct cross references to statute.

SUMMARY OF COMMENTS AND AGENCY RESPONSES. The public comment period on the proposal began on April 21, 2017, and ended May 22, 2017. No public comments were received.

STATUTORY AUTHORITY. The amendment is adopted under the Texas Education Code, §42.2515, which authorizes the commissioner to adopt rules to implement and administer the provision of additional state aid, including aid for school districts otherwise ineligible for state aid, in order to offset tax credits issued by school districts under the Texas Tax Code, Chapter 313.

CROSS REFERENCE TO STATUTE. The amendment implements the Texas Education Code, §42.2515.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 27, 2017.

TRD-201702477

Cristina De La Fuente-Valadez

Director, Rulemaking

Texas Education Agency

Effective date: July 17, 2017

Proposal publication date: April 21, 2017

For further information, please call: (512) 475-1497