The State Board of Education (SBOE) adopts amendments to §109.51 and §109.52, concerning uniform depository bank bid and contract forms. The amendments are adopted without changes to the proposed text as published in the June 13, 2008, issue of the Texas Register (33 TexReg 4591) and will not be republished. 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 adopted amendments 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 adopted amendments to 19 TAC Chapter 109, Subchapter D, revise the methods a district may choose to select a depository to include a request for proposal process. The required forms adopted in rule are also 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 adopted amendments to 19 TAC Chapter 109, Subchapter D, also change the subchapter title to read, "Uniform Bank Bid or Request for Proposal and Depository Contract." Specifically, the adopted amendments include the following.

The adopted 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 adopted amendment also includes 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 are also updated.

The adopted 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 are adopted but no changes were made 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.

The Texas Education Agency determined that the adopted amendments will have no direct adverse economic impact for small businesses and microbusinesses; therefore, no regulatory flexibility analysis, specified in Texas Government Code, §2006.002, is required.

In accordance with the TEC, §7.102(f), the SBOE approved this rule action for final adoption by a vote of more than two-thirds of its members to specify an effective date earlier than the beginning of the 2009-2010 school year. The earlier effective date is necessary in order to begin implementing the rule amendments before the start of the next school year. The effective date of the adopted new section is 20 days after filing as adopted.

No comments were received regarding the proposed amendments.

The amendments are adopted 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.