The State Board of Education (SBOE) adopts 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. The amendments are adopted without changes to the proposed text as published in the March 7, 2014, issue of the Texas Register (39 TexReg 1599) and will not be republished. 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 adopted amendments reduce paperwork a district must file with the Texas Education Agency (TEA) 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 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 adopted amendment to 19 TAC §109.51, Uniform Depository Bank Bid or Proposal Form, removes 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), were revised to update and clarify language.

The adopted amendment to 19 TAC §109.52, Uniform Depository Bank Contract and Surety Bond Forms, clarify language and add a provision in subsection (a) to require a district to electronically file the contract with the TEA. The adopted amendment also adds 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), was 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), was revised to update and clarify language.

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

The TEA determined that 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.

The SBOE took action to approve the proposed amendments to 19 TAC Chapter 109, Subchapter D, for second reading and final adoption during its April 11, 2014, meeting. In accordance with the Texas Education Code, §7.102(f), the SBOE approved the amendments for final adoption by a vote of two-thirds of its members to specify an effective date earlier than the beginning of the 2014-2015 school year in order to implement the latest policy in a timely manner. The effective date for the amendments is 20 days after filing as adopted.

No public comments were received on the proposal.

The amendments are adopted 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.