TITLE 16. ECONOMIC REGULATION

PART 1. RAILROAD COMMISSION OF TEXAS

CHAPTER 20. ADMINISTRATION

SUBCHAPTER A. CONTRACTS AND PURCHASES

DIVISION 3. CONTRACT MONITORING

16 TAC §20.81

The Railroad Commission of Texas (Commission) adopts new §20.81, relating to Enhanced Contract Monitoring, without changes to the proposed text as published in the December 23, 2016, issue of the Texas Register (41 TexReg 10057). The Commission adopts the new rule pursuant to Texas Government Code §2261.253(c), which was added by Senate Bill 20 (84th Legislature, 2015) and requires state agencies to establish a procedure to identify each contract that requires enhanced contract monitoring and submit information on the contract to the agency's governing body. It also requires that the agency's contract management office or procurement director immediately notify the agency's governing body of any serious issue or risk that is identified in a contract monitored under the statute.

The new rule lists the factors that the Commission will use to assess each contract and determine whether enhanced contract monitoring is necessary. The factors include the complexity of the services, the contract amount, whether the services or vendor are new or have changed significantly, and any other factors that may impact the project. The new rule also specifies what the Commission may require of a vendor if the Commission determines that a contract requires enhanced monitoring, and identifies Commission staff who are responsible for monitoring contracts.

The Commission received one comment on the proposal from an individual. The comment suggested that the Commission consider three additional factors in its enhanced contract monitoring analysis: (1) whether the contractor has a proven record of providing the goods or services within the expected time frames; (2) whether the contractor has filed for bankruptcy in the last five years; and (3) whether the contractor has filed performance or payment bonds or other assurances of performance. The Commission declines to include the suggested language. These factors are more appropriately considered during the solicitation phase of procurement, and in fact, the Commission already considers similar factors during solicitation.

The Commission adopts the new rule under Texas Government Code §2261.253, which requires the Commission to establish a procedure to identify each contract that requires enhanced contract or performance monitoring, and Texas Natural Resources Code §81.051 and §81.052, which provide the Commission with jurisdiction over all persons owning or engaged in drilling or operating oil or gas wells in Texas and the authority to adopt all necessary rules for governing and regulating persons and their operations under Commission jurisdiction.

Statutory authority: Texas Natural Resources Code §81.051 and §81.052, and Texas Government Code §2261.253.

Cross-reference to statutes: Texas Natural Resources Code §81.051 and §81.052 and Texas Government Code §2261.253.

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 6, 2017.

TRD-201702191

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Effective date: June 26, 2017

Proposal publication date: December 23, 2016

For further information, please call: (512) 475-1295


PART 2. PUBLIC UTILITY COMMISSION OF TEXAS

CHAPTER 27. RULES FOR ADMINISTRATIVE SERVICES

SUBCHAPTER A. GENERAL PROVISIONS

16 TAC §27.21

The Public Utility Commission of Texas (commission) adopts new §27.21, relating to commission employee training without changes to the proposed text as published in the December 16, 2016, issue of the Texas Register (41 TexReg 9830). The rule will bring the commission into compliance with amendments to the State Employees Training Act, Texas Government Code §§656.041 - 656.104, made by the 84th Legislature. Specifically, House Bill No. 3337 (HB 3337) amended the State Employees Training Act to clarify that a state agency may only pay the tuition of an employee for successful completion of a training program offered by an institution of higher education and required state agencies to adopt rules requiring that the executive head of the agency must authorize any tuition reimbursement payment. This new section is adopted under Project Number 46564.

No public hearing was requested for this rulemaking and no comments were received.

This new section is adopted under the Public Utility Regulatory Act, Texas Utilities Code Annotated §14.002 (West 2007 and Supp. 2016) (PURA) which provides the commission with the authority to make and enforce rules reasonably required in the exercise of its powers and jurisdiction; and the State Employees Training Act, Texas Government Code Annotated §656.048 (West 2015), which requires the commission to adopt rules relating to the eligibility of the commissioners and commission employees for training and education supported by the commission, and the obligations assumed by the commissioners and commission employees on receiving the training and education.

Cross Reference to Statutes: Public Utility Regulatory Act §14.002 and Texas Government Code §§656.041 - 656.104.

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 9, 2017.

TRD-201702264

Adriana Gonzales

Rules Coordinator

Public Utility Commission of Texas

Effective date: June 29, 2017

Proposal publication date: December 16, 2016

For further information, please call: (512) 936-7293