Texas Register, Volume 38, Number 34, Pages 5371-5484, August 23, 2013 Page: 5,403
5371-5484 p. ; 28 cm.View a full description of this periodical.
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Adriana A. Gonzales
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: September 22, 2013
For further information, please call: (512) 936-7223
PART 9. TEXAS LOTTERY
COMMISSION
CHAPTER 401. ADMINISTRATION OF STATE
LOTTERY ACT
SUBCHAPTER A. PROCUREMENT
16 TAC 401.105
The Texas Lottery Commission (Commission) proposes new 16
TAC 401.105, concerning Major Procurement Approval Author-
ity and Responsibilities. The new rule is proposed to implement
changes to Government Code, Chapter 466, made pursuant to
Section 3 of Tex. H.B. 2197, 83rd Leg., R.S. 2013. Specifically,
Section 3 of H.B. 2197 amended Government Code, Chapter
466, by adding new 466.1005 Procurements, which allows the
Commission to make any purchases, leases, or contracts nec-
essary for the purpose of carrying out the requirements of Chap-
ter 466. Furthermore, new Government Code 466.1005 also
requires the Commission to review and approve all major pro-
curements as defined by Commission rule. It also allows the
Commission to delegate to the Executive Director the authority
to approve procurements other than major procurements. Sec-
tion 45 of H.B. 2197 provides that not later than January 1, 2014,
the Texas Lottery Commission shall adopt all rules, policies, and
procedures required by the changes in law made by this Act.
Proposed new 401.105 outlines the procedure for approval au-
thority of the major procurements before the Commission. The
proposed new section identifies what constitutes a major pro-
curement. The proposed new section also delegates all approval
authority not reserved by the Commission to the Executive Direc-
tor, and discusses authority to execute contracts for the agency.
Lastly, the proposed new section describes contract planning up-
dates provided to the Commission.
Kathy Pyka, Controller, has determined that for each year of the
first five years the proposed new section will be in effect, there
are no foreseeable implications related to cost or revenues to
the state as a result of the proposed new section. There will be
no adverse effect on small businesses, micro businesses, or lo-
cal or state employment. There will be no additional economic
costs to persons required to comply with the new section as pro-
posed. Furthermore, an Economic Impact Statement and Regu-
larity Flexibility Analysis is not required because the new section
will not have an economic effect on small businesses as defined
in Texas Government Code 2006.0012(2).
Mike Fernandez, Director of Administration, has determined that
for each year of the first five years the proposed new section will
be in effect the public benefit anticipated from these changes will
be to provide greater clarity to the public regarding major contract
approval procedures before the Commission.
The Commission requests comments on the proposed new sec-
tion from any interested person. Comments on the proposed
new section may be submitted to Lea Burnett, Assistant GeneralCounsel, by mail at Texas Lottery Commission, P.O. Box 16630,
Austin, Texas 78761-6630; by facsimile at (512) 344-5189; or by
email at www.legal.input@lottery.state.tx.us. Comments must
be received within 30 days after publication of this proposal in
order to be considered.
The new section is proposed under the authority of Texas Gov-
ernment Code 466.015, which provides the Commission with
the authority to adopt rules governing the operation of the lot-
tery. The new section is also proposed under the authority of
Texas Government Code 467.102, which provides the Com-
mission with the authority to adopt rules for the enforcement and
administration of the laws under the commission's jurisdiction.
This proposal is intended to implement Sections 3 and 45 of H.B.
2197, 83rd Legislature, Regular Session, 2013.
The following statutes are affected by this proposal: Texas Gov-
ernment Code 466.1005 and 466.101.
401.105. Major Procurement Approval Authority and Responsibili-
ties.
(a) Purpose. The purpose of this rule is to establish the ap-
proval authority and responsibilities for all formal procurements.
(b) Applicability. This rule applies to all formal procurements
made by the agency.
(c) Definitions. As used in this section, the following terms
shall have the following meanings, unless the context clearly indicates
otherwise.
(1) Contract--A written agreement between the agency and
a vendor for goods or services. As used in this section, "contract" in-
cludes letters of agreement, interagency agreements with other govern-
ment entities, and other documents in which state funds allocated to the
agency are exchanged for the delivery of goods or services.
(2) Formal Procurement--A formal competitive solicita-
tion, for the purchase or lease of goods and/or services expected to
exceed $25,000, conducted in order to receive at least three sealed
competitive bids or proposals pursuant to the issuance of an IFB, RFP,
RFQ, or another statewide contract process, respectively.
(3) Value--The agency adopts by reference the determina-
tion of contract value set forth in the State of Texas Contract Manage-
ment Guide. The determination of contract value shall be based on
the original term of the contract, including any renewal periods. The
agency shall base its determination of the proposed length of and com-
pensation during the original term and the renewal periods of the con-
tract on best business practices, state fiscal standards and applicable
law, procedures and regulations.
(d) Major Procurement. Any formal procurement for goods or
services that has a cumulative contract value equal to or greater than
ten (10) million dollars is a major procurement.
(e) Approval Authority.
(1) Texas Lottery Commission Approval. The executive
director or his/her designee shall present all major procurements to the
Texas Lottery Commission for review and approval. After a vendor
is selected and a contract has been fully negotiated, the Texas Lottery
Commission shall provide final approval of the contract with the se-
lected vendor.
(2) Agency Approval. The Texas Lottery Commission del-
egates authority to the executive director (or his/her designee) to ap-
prove all contracts and purchase orders not defined as major procure-
ments in subsection (d) of this section.PROPOSED RULES August 23, 2013 38 TexReg 5403
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Texas. Secretary of State. Texas Register, Volume 38, Number 34, Pages 5371-5484, August 23, 2013, periodical, August 23, 2013; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth342079/m1/33/: accessed April 20, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.