The State Board of Education (SBOE) proposes amendments to §109.51 and §109.52, concerning uniform depository bank bid and contract forms. Section 109.51 establishes the requirement that each school district submit a blank uniform bid form to each bank located in the district and, if desired, to other banks interested in acting as depository for all funds. The section includes the bid form prescribed by the SBOE. Section 109.52 establishes the requirement that each school district select a bank as a school depository and enter into a depository contract with the bank. A school district may select and contract with more than one bank. The section includes the depository contract form with the content prescribed by the SBOE. The proposed amendments would update the current rules to reflect statutory changes resulting from House Bill (HB) 2411, 80th Texas Legislature, 2007.

HB 2411, 80th Texas Legislature, 2007, amended the Texas Education Code, §45.206, requiring school districts to choose whether to select a depository through a competitive bidding process or through a request for proposal process. The decision to use a request for proposal process is entirely voluntary. Current SBOE rule provides a uniform bid blank form and uniform depository contract form for selecting a depository by competitive bidding only.

In accordance with the statutory change, the proposed amendments to 19 TAC Chapter 109, Subchapter D, would revise the methods a district may choose to select a depository to include a request for proposal process. The required forms adopted in rule would also be updated to include current depository services reflective of technological advances since the forms were last updated. The updated forms were developed in conjunction with stakeholder meetings with bankers and school district personnel. The proposed amendments to 19 TAC Chapter 109, Subchapter D, would also change the subchapter title to read, "Uniform Bank Bid or Request for Proposal and Depository Contract." Specifically, the proposed amendments would include the following.

The proposed amendment to 19 TAC §109.51 includes new language throughout to allow each school district to choose whether to select a depository through a competitive bidding process or through a request for proposal process. The proposed amendment would also include an updated uniform bid blank form (Figure: 19 TAC §109.51(c)) and a new uniform proposal blank form (Figure: 19 TAC §109.51(d)). The title of 19 TAC §109.51 and the uniform bid blank form would also be updated.

The proposed amendment to 19 TAC §109.52 includes an updated uniform depository contract form (Figure: 19 TAC §109.52(b)). Minor technical changes to language in the section would be proposed but no changes would be proposed to the uniform surety bond form (Figure: 19 TAC §109.52(d)).

Not later than the 60th day before the date a school district's current depository contract expires, the district shall choose whether to select a depository through a competitive bidding process or through a request for proposal process. The school district would document its choice of method to select a depository.

Adrain Johnson, Associate Commissioner for Accreditation, has determined that for the first five-year period the amendments are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the amendments.

Dr. Johnson has determined that for each year of the first five years the amendments are in effect the public benefit anticipated as a result of enforcing the amendments would be providing school districts the flexibility to determine the method by which they select the depository. School districts that choose to select a depository through a request for proposal process would have more freedom to negotiate depository services. There is no anticipated economic cost to persons who are required to comply with the proposed amendments. In addition, there is no direct adverse economic impact for small businesses and microbusinesses; therefore, no regulatory flexibility analysis, specified in Texas Government Code, §2006.002, is required.

Comments on the proposal may be submitted to Cristina De La Fuente-Valadez, Policy Coordination Division, Texas Education Agency, 1701 North Congress Avenue, Austin, Texas 78701, (512) 475-1497. Comments may also be submitted electronically to rules@tea.state.tx.us or faxed to (512) 463-0028. A request for a public hearing on the proposed amendments submitted under the Administrative Procedure Act must be received by the commissioner of education not more than 15 calendar days after notice of the proposal has been published in the Texas Register.

The amendments are proposed under the Texas Education Code, §§7.102(c)(34), 45.206, and 45.208, which authorizes the State Board of Education to prescribe a uniform bid blank form for a school district to use in selecting a depository bank and to prescribe a uniform depository contract form.

The amendments implement the Texas Education Code, §§7.102(c)(34), 45.206, and 45.208.