PART 1. COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 5. FUNDS MANAGEMENT (FISCAL AFFAIRS)
SUBCHAPTER E. CLAIMS PROCESSING--PURCHASE VOUCHERS
The Comptroller of Public Accounts proposes amendments to §5.54 concerning consulting services contracts.
The legislation enacted within the last four years that provides the statutory authority for the amendments is Senate Bill 799, 87th Legislature, R.S., 2021.
The amendments to subsection (a) add a definition of "university system" because a reference to "university system" is being added in subsection (f)(1)(B) and delete the definition of "SPD" because references to "SPD" are being deleted from subsection (e).
The amendments to subsection (c)(1) delete the reference to subsection (d) because subsection (d) is being deleted from this section; add a reference to Government Code, §2254.028(a)(3) because Government Code, §2254.028(b) states that failure to obtain the finding required by Government Code, §2254.028(a)(3) will cause a major consulting services contract, renewal, amendment, or extension to be void; and add the phrase "if applicable" because some of the sections referenced in this subsection apply to all consulting contracts and some apply only to major consulting services contracts.
The amendments to subsections (c) and (e) make non-substantive changes by deleting the word "then" as unnecessary.
The amendments to subsection (d) delete the entire subsection because the requirements in subsection (d)(1)(A) are not currently authorized by Government Code, Chapter 2254, Subchapter B, and the requirements in subsections (d)(1)(B) and (d)(2) are not needed in this section because they are set forth in Government Code, §2254.031.
The amendments to subsection (e) change "SPD" to "the comptroller" because Government Code, §2254.040 refers to "the comptroller."
The amendments to subsection (f) change the threshold amount for reporting a consulting services contract to the Legislative Budget Board in subsection (f)(1)(B) from "$14,000" to "$50,000"; add the exception that the state agency requesting the payment is not subject to the requirements of subsection (f)(1)(B) if it is a university system or an institution of higher education, to comply with the current provisions of Government Code, §2254.0301(a); change "payer" to "state agency" in subsection (f)(2) to clarify the language of the subsection by using the defined term "state agency"; change "volume and page numbers of the Texas Register" to "solicitation ID of the Electronic State Business Daily posting" in subsection (f)(2)(B) to comply with the current provisions of Government Code, §2254.029(a); and delete the reference to Government Code, §2254.033(b) in subsection (f)(2)(A) and §2254.031(a)(2) and (c)(2) in subsection (f)(2)(B) because these provisions no longer exist.
Brad Reynolds, Chief Revenue Estimator, has determined that during the first five years that the proposed amended rule is in effect, the 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.
Mr. Reynolds also has determined that the proposed amended rule would have no significant fiscal impact on the state government, units of local government, or individuals. The proposed amended rule would benefit the public by improving the clarity and implementation of the sections. There would be no significant anticipated economic cost to the public. The proposed amended rule would have no significant fiscal impact on small businesses or rural communities.
You may submit comments on the proposal to Rob Coleman, Director, Fiscal Management Division, at rob.coleman@cpa.texas.gov or at P.O. Box 13528, Austin, Texas 78711. The comptroller must receive your comments no later than 30 days from the date of publication of the proposal in the Texas Register.
The amendments are proposed under Government Code, §2254.039(a), which requires the comptroller to adopt rules to implement and administer Government Code, Chapter 2254, Subchapter B, concerning consulting services. The comptroller has given the proposed amendments to §5.54 to the governor for review and comment as required by Government Code, §2254.039(b).
The amendments implement Government Code, Chapter 2254, Subchapter B concerning consulting services.
§5.54.Consulting Services Contracts.
(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.
(1) Consulting service--A study conducted for a state agency or advice provided to a state agency under a contract that does not involve the traditional relationship of employer and employee. The term does not include a routine service that is necessary to the functioning of a state agency's programs.
(2) Institution of higher education--Has the meaning assigned by Education Code, §61.003 except the term does not include a public junior college or a community college.
(3) Major consulting services contract--Has the meaning assigned by Government Code, §2254.021(2).
[(4) SPD--The Statewide Procurement
Division of the comptroller's office.]
(4) [(5)] State agency--Has the
meaning assigned by Government Code, §2151.002.
(5) University system--Has the meaning assigned by Education Code, §61.003.
(b) Applicability of this section. This section applies to a consulting service only to the extent Government Code, Chapter 2254, Subchapter B, applies to that service.
(c) Effect of noncompliance with this section or applicable statutes.
(1) If a state agency contracts for a consulting service
or renews, amends, or extends a consulting services contract without
complying with the requirements of [subsection (d) of this section
and] Government Code, §§2254.028(a)(3), 2254.029 [ §§2254.029], 2254.030, 2254.0301, and 2254.033, if
applicable, [then] the contract, renewal, amendment,
or extension is void.
(2) If a contract, renewal, amendment, or extension
is void under paragraph (1) of this subsection, [then]
the comptroller may not:
(A) draw a warrant or transmit funds to satisfy an obligation under the contract, renewal, amendment, or extension; or
(B) reimburse a state agency for a payment made under the contract, renewal, amendment, or extension.
(3) If a contract, renewal, amendment, or extension
is void under paragraph (1) of this subsection, [then]
a state agency may not make any payments under the contract, renewal,
amendment, or extension from any state or federal funds held in or
outside the state treasury.
[(d) Renewals, amendments, or extensions
of consulting services contracts.]
[(1) A state agency must comply with this paragraph when the agency intends to renew, amend, or extend a major consulting services contract.]
[(A) If the renewal contract itself is not a major consulting services contract or if the contract after the amendment or extension is no longer a major consulting services contract, then the agency shall file the information required by Government Code, §2254.030 with the secretary of state for publication in the Texas Register. The information must be filed not later than the 20th day after either the date the renewal contract is entered into or the date the original contract is amended or extended.]
[(B) If the renewal contract itself is a major consulting services contract or if the contract after the amendment or extension is still a major consulting services contract, then the agency shall comply with the requirements of Government Code, §2254.028(a) and §2254.029.]
[(2) A state agency that intends to renew, amend, or extend a consulting services contract that is not a major consulting services contract shall comply with the requirements of Government Code, §2254.028(a) and §2254.029 if the original contract and either the renewal contract, the amendment, or the extension have a reasonably foreseeable value totaling more than $15,000 if the agency is not an institution of higher education or $25,000 if the agency is an institution of higher education.]
(d) [(e)] Procurement of consulting
services by the comptroller [SPD]. If the
comptroller [SPD] procures a consulting service for
a state agency under Government Code, §2254.040, the comptroller
[then SPD] must comply with any requirements of
this section and Government Code, Chapter 2254, Subchapter B that
would apply if the agency were procuring the consulting service directly.
(e) [(f)] Purchase document requirements.
(1) In addition to the requirements of paragraph (2) of this subsection, the purchase document submitted to the comptroller that requests payment under a contract subject to that paragraph must be supported by the following documentation:
(A) a copy of the original contract and, if the contract has been renewed, amended, or extended, a copy of the renewal, amendment, or extension;
(B) a copy of any written notice provided to the Legislative
Budget Board under Government Code, §2254.0301 if the amount
of the contract, including any renewal, amendment, or extension, exceeds $50,000 and the state agency requesting the payment is not a university
system or an institution of higher education [$14,000]; and
(C) a statement that the payment complies with Government Code, §§2155.004(a) - (b), 2254.026, 2254.027, and 2254.033.
(2) This paragraph applies when a purchase document
is submitted to the comptroller that requests a payment under either
a major consulting services contract (or a renewal, amendment, or
extension of a major consulting services contract) or a contract that
was not originally a major consulting services contract but whose
value after renewal, amendment, or extension totals more than $15,000
if the state agency [payer] is not an institution
of higher education or $25,000 if the state agency [payer
] is an institution of higher education. In addition to the
requirements of paragraph (1) of this subsection, the document must
be supported by the following documentation:
(A) a reference to the solicitation ID [volume
and page numbers] of the Electronic State Business Daily
posting [Texas Register]
in which the requirements of Government Code, §2254.029 and §2254.030,
and, if applicable, Government Code, §2254.028(c) [and §2254.033(b)
] were fulfilled; and
(B) a copy of the governor's finding of fact that the
consulting services are necessary if the finding is required by Government
Code, §2254.028 [§§2254.028, 2254.031(a)(2),
or 2254.031(c)(2), or by any combination of those statutes].
(3) A state agency that has received the governor's emergency waiver of the requirements of Government Code, Chapter 2254, Subchapter B must include a copy of the waiver in the supporting documentation for the contract for which the waiver was received.
(4) A state agency shall retain the supporting documentation required by this subsection and provide that documentation to the comptroller as required by §5.51 of this title (relating to Requirements for Purchase Documents).
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 February 7, 2025.
TRD-202500436
Victoria North
General Counsel for Fiscal and Agency Affairs
Comptroller of Public Accounts
Earliest possible date of adoption: March 23, 2025
For further information, please call: (512) 475-2220