TITLE 34. PUBLIC FINANCE

DIVISION 1. PRIMARY AND DELEGATED PROCUREMENT AUTHORITY

34 TAC §20.82

The Comptroller of Public Accounts proposes amendments to §20.82, concerning delegated purchases.

No legislation was enacted within the last four years that provides the statutory authority for the amendments.

Under amendments to subsection (a)(1), the comptroller delegates to state agencies the one-time purchases of goods, including goods for resale, the estimated cost of which does not exceed $100,000. The comptroller is raising the delegation threshold from $50,000 to $100,000 to account for changes in the cost of goods.

The comptroller adds new subsection (b)(7) which will prohibit state agencies from dividing purchases into smaller increments to avoid complying with the thresholds set out in this section. This is consistent with Government Code, §2155.132(g) which states that "{a} large purchase may not be divided into small lot purchases to meet the dollar limits prescribed by this section."

Finally, under amendments to subsection (d)(1)(A) and to demonstrate a good faith effort to include historically underutilized businesses (HUBs) in contracting, a state agency must solicit at least one informal bid from a HUB on all purchases of goods and services exceeding $10,000 and not exceeding $25,000. Currently, state agencies must solicit at least two bids from HUBs for such purchases.

Tetyana Melnyk, Director of Revenue Estimating Division, has determined that during the first five years that the proposed amendments are in effect, the amended rule: will not create or eliminate a government program; will not require the creation or elimination of employee positions; will not require an increase or decrease in future legislative appropriations to the agency; will not require an increase or decrease in fees paid to the agency; will not increase or decrease the number of individuals subject to the rule's applicability; and will not positively or adversely affect this state's economy. This proposal amends an existing rule.

Ms. Melnyk also has determined that the proposed amended rule would have no fiscal impact on the state government, units of local government, or individuals. The proposed amendments would benefit the public by updating the procurement threshold to reflect current market conditions for goods and services, reducing administrative burden on both state agencies and vendors by streamlining the approval process for routine purchases. The prohibition on dividing purchases into smaller lots would promote transparency, consistency, and fair competition in state contracting, ensuring compliance with the Government Code. There would be no anticipated significant economic cost to the public. The proposed amendments would have no significant fiscal impact on rural communities. The pool of businesses participating in the procurement process could decline, as state agencies would no longer be obligated to solicit an informal bid from more than one historically underutilized business (HUB) for each qualifying purchase. Costs to HUBs for monitoring state contracting opportunities could increase as notices and invitations to bid delivered to small businesses may be reduced, and the share of state contracts won by those businesses could decrease to an unknown extent; the fiscal implications for small businesses cannot be determined.

You may submit comments on the proposal or information related to the cost, benefit, or effect of the proposal, including any applicable data, research or analysis, to Gerard MacCrossan, P.O. Box 13528, Austin, Texas 78711 or to the email address: Gerard.MacCrossan@cpa.texas.gov. The comptroller must receive your comments or other information no later than 30 days from the date of publication of the proposal in the Texas Register.

A public hearing will be held to receive comments on the proposal. There is no physical location for this meeting. The meeting will be held at 10:00 a.m., Central Time, on Tuesday, July 14, 2026. To access the online public meeting by web browser, please enter the following URL into your browser: https://txcpa.webex.com/txcpa/j.php?MTID=m096e87cc70f4a2b36bcd2ac864feb9d4. To join the meeting by computer or cell phone using the Webex app, use the access code 2488 466 6831 and password SPDrules. Persons interested in providing comments at the public hearing may contact Mr. Gerard MacCrossan, Comptroller of Public Accounts, at Gerard.MacCrossan@cpa.texas.gov or by calling (512) 463-4468 by July 13, 2026.

The comptroller proposes these amendments under Government Code, §§2155.0012 and 2156.0012, which authorize the comptroller by rule to efficiently and effectively administer state purchasing of goods and services.

These amendments implement Government Code, §2155.132.

§ 20.82. Delegated Purchases.

(a) General delegation. The purchase of the following goods and services is delegated to state agencies:

(1) one-time purchases of goods, including goods for resale, the estimated cost of which does not exceed $100,000 [$50,000];

(2) emergency purchases;

(3) purchases of perishable goods;

(4) purchases of services, including services for resale, the estimated cost of which does not exceed $100,000;

(5) purchases of publications directly from the publisher;

(6) fuel, oil, and grease purchases;

(7) distributor purchases; and

(8) professional memberships.

(b) Provisions generally applicable to delegated purchases.

(1) Competitive bidding is not required for purchases of $10,000 or less.

(2) All required solicitations of informal bids must be directed to vendors which normally offer for sale the goods and services being purchased.

(3) Items purchased under delegated authority may not include items available under a term or cooperative contract (unless purchased in quantities less than minimum ordering quantities of the contract) or any item required by law to be purchased from a particular source.

(4) The state agency must solicit formal bids from all eligible vendors on the centralized master bidders list (CMBL) when making purchases in excess of $25,000.

(5) The state agency must maintain documentation justifying a proprietary purchase in excess of $10,000. A solicitation for a proprietary purchase must indicate that it is proprietary and products or services other than those specified will not be considered.

(6) An agency's cost estimate must be developed in good faith using a method that is reasonable under the circumstances.

(7) An agency may not divide purchases of similar or like goods or services to avoid complying with the thresholds in this section.

(c) Withdrawal of delegated purchase authority. The comptroller will monitor compliance with established procedures for delegated purchases and may withdraw delegated purchase authority in whole or part from a state agency for continued violations after giving adequate warning. The comptroller will report to the governor, lieutenant governor, speaker of the house of representatives, and Legislative Budget Board the findings that a state agency has not followed the comptroller's rules or the laws related to the delegated purchases.

(d) Provisions applicable to particular delegated purchases.

(1) Goods and services purchases. Purchases of goods and services may be made in accordance with the following provisions.

(A) State agencies must solicit at least three informal bids, including at least one bid [two bids] from historically underutilized businesses (HUBs), on all purchases of goods and services exceeding $10,000 and not exceeding $25,000. State agencies must, to the extent possible, solicit bids from vendors on the CMBL and vendors in the HUB Directory. If a state agency is unable to locate one HUB [two HUBs], it must make a note in the contract file.

(B) For delegated purchases of goods and services estimated to cost more than $25,000, state agencies shall post a solicitation or notice of solicitation on the ESBD and, at a minimum, solicit formal bids from all eligible vendors within the NIGP classes and items designated for the procurement that are active on the CMBL. See §20.207 of this title (relating to Competitive Sealed Bidding), and §20.208 of this title (relating to Competitive Sealed Proposals).

(2) Emergency purchases. State agencies shall make emergency purchases in accordance with the following provisions.

(A) At least three informal bids should be obtained whenever possible.

(B) For an emergency purchase of goods or services exceeding $25,000, a state agency must retain a full written explanation of the emergency along with other documentation required by the comptroller in the contract file.

(C) A state agency may contact the comptroller for advice and assistance in the handling of emergency purchases.

(3) Perishable goods. Purchases of perishable goods must be obtained through competitive bids, and appropriate documentation must be retained in the contract file.

(4) Publications. A state agency may purchase publications directly from the publisher when such publications are not available through statewide contract or through competitive bidding. Direct publication orders shall be made by following guidelines established by the comptroller. Examples of direct publications include, but are not limited to:

(A) foreign publications;

(B) out-of-print or rare publications;

(C) back issues of magazines, journals, and newspapers;

(D) publications of professional societies;

(E) prepared films, tapes, and discs (audio, visual, or both);

(F) computer software;

(G) collections of any of the foregoing items, and microfilm or microfiche copies of any of the foregoing items; and

(H) Library of Congress cards.

(5) Fuel, oil, and grease. A state agency may make fuel, oil, and grease purchases at service stations or in bulk. Fuel, oil, and grease purchases shall be made by following guidelines suggested by the comptroller. Non-competitive and emergency purchase procedures apply to purchases at service stations.

(6) Distributor purchases. A state agency may make distributor purchases by following guidelines established by the comptroller. A state agency may not purchase any of the following on a distributor purchase basis: consumable items; labor of any kind (see "service"); "will fit" parts (non-OEM); parts for stock; contract items; electrical parts for electric motors; electrical switch panel boards; electrical accessories.

(7) Professional memberships. A state agency may purchase professional memberships as described in Government Code, §2113.104 directly from a professional organization when such memberships are not available through competitive bidding, the administrative head of the agency, or that person's designee, has approved the purchase, the purchase will serve a public purpose, and the agency will receive adequate consideration in exchange for the purchase.

(e) Specific delegations.

(1) The authority to grant specific delegations resides with the director. Upon request of a state agency, the director shall determine whether to delegate a procurement to a state agency or to carry out the procurement.

(2) A state agency seeking a specific delegation shall submit its proposed specifications for goods and services and evaluation criteria to the division using a procedure specified by the division. Alternately, a state agency may request for the division to develop specifications and evaluation criteria.

(3) At a minimum, state agencies granted specific delegations shall meet the following criteria:

(A) procurement audit standards set forth in §20.510 of this title (relating to Auditing of Purchase Related Documentation);

(B) minimum training and certification standards established in §20.133 of this title (relating to Training and Certification Program); and

(C) approved processes and procedures for the specific type of delegation being requested. All processes and procedures are subject to the prior review, revision and approval of the director.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on June 18, 2026.

TRD-202602495

Don Neal

General Counsel, Operations and Support Legal Services

Comptroller of Public Accounts

Earliest possible date of adoption: August 2, 2026

For further information, please call: (512) 475-2220

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