(Editor's note: In accordance with Texas Government Code, §2002.014, which permits the omission of material which is "cumbersome, expensive, or otherwise inexpedient," the figures in 19 TAC §109.51 and §109.52 are not included in the print version of the Texas Register. The figures are available in the on-line version of the March 7, 2014, issue of the Texas Register.)

The State Board of Education (SBOE) proposes amendments to §109.51 and §109.52, concerning uniform forms for depository bank bid or request for proposal, depository contract, depository bank contract, and surety bonds. Section 109.51 establishes the requirement that each school district submit a blank uniform bid form or request for proposal 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 and request for proposal forms 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 and surety bond forms with the content prescribed by the SBOE. The proposed amendments would reduce paperwork and streamline the process by which a school district selects a depository bank.

The rules in 19 TAC Chapter 109, Subchapter D, establish rules related to a school district's selection of and contract with a bank to serve as the district's depository for all funds.

Section 109.51 establishes the requirement that each school district, before the current depository contract expires, choose whether to select a depository bank through competitive bidding or through requests for proposals and then submit a blank uniform bid or proposal form to each bank in the district and, if desired, to other interested banks. Section 109.51 also establishes the requirement that a district file the selected form with the Texas Education Agency (TEA). The section includes the bid and proposal forms prescribed by the SBOE.

Section 109.52 establishes the requirement that each school district select at least one bank as a depository and enter into a depository contract with the bank, providing the completed contract to the TEA. Section 109.52 also establishes the requirement that a district provide a completed surety bond form to the TEA if the depository bank uses a surety bond to secure district deposits. The section includes the depository contract form and surety bond form with the content prescribed by the SBOE.

The proposed amendment to 19 TAC §109.51, Uniform Depository Bank Bid or Proposal Form, would remove the requirement in subsection (b) for the district to file its bid or proposal with the TEA and would add a requirement for the district to make the selected bid or proposal available to the TEA on request. The uniform bid blank form, adopted as Figure: 19 TAC §109.51(c), and the uniform proposal blank form, adopted as Figure: 19 TAC §109.51(d), would be revised to update and clarify language.

The proposed amendment to 19 TAC §109.52, Uniform Depository Bank Contract and Surety Bond Forms, would clarify language and add a provision in subsection (a) to require a district to electronically file the contract with the TEA. The proposed amendment would also add a provision for the TEA to notify a district by email if its depository contract is incomplete and a provision stating that a district that has no depository contract in force and filed with the TEA will receive its warrants from the TEA by US mail.

The uniform depository bank contract form, adopted as Figure: 19 TAC §109.52(b), would be revised to remove the signature line for a TEA staff member to approve the contract because the TEA's approval is not considered necessary; to delete any requirement for the bid or proposal to be attached to the contract and to add a provision that the district must provide the bid or proposal upon the TEA's request; to remove language stating that the contract becomes binding only upon acceptance by the TEA; and to add a requirement for the district to file the contract or extension electronically with the TEA. The surety bond form, adopted as Figure: 19 TAC §109.52(d), would be revised to update and clarify language.

The proposed amendments would have procedural and reporting implications. The proposed amendments would update and streamline the filing process and reduce paperwork for a district to select and contract with a depository bank. The proposed amendment would have locally maintained paperwork requirements. The proposed amendments would require the district to keep the selected bid or proposal in the district and make it available to the TEA upon request.

Lisa Dawn-Fisher, associate commissioner for school finance/chief school finance officer, has determined that for the first five-year period the proposed amendments are in effect there will be no additional costs for state government as a result of enforcing or administering the proposed amendments. Districts may save money because the proposed amendment to 19 TAC §109.51 would remove the requirement for districts to mail their selected bid or proposal form to the TEA. These savings are impossible to estimate because the size or page count of documents could vary and require differing amounts of staff processing time as well as packing and shipping costs.

Dr. Dawn-Fisher has determined that for each year of the first five years the proposed amendments are in effect the public benefit anticipated as a result of enforcing the amendments would be to update and streamline the process and reduce paperwork for a district to select and contract with a depository bank. 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, Rulemaking, 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) 463-5337. 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 14 calendar days after notice of the proposal has been published in the Texas Register.

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

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