1. (a) Purpose. The purpose of this rule is to establish the approval authority and responsibilities for executing contracts required by the Texas Youth Commission (TYC).
2. (b) Applicability. This rule applies to all contracts entered into by TYC.

3. (c) Definitions. As used in this chapter, the following terms shall have the following meanings, unless the context clearly indicates otherwise.

   1. (1) Board--the governing board of TYC.
   2. (2) Contract--a written contract between TYC and a contractor for goods or services or for a project as defined by Texas Government Code §2166.001. As used in this chapter, "contract" includes the following: letters of agreement; interagency/interlocal agreements with other government entities; and other documents in which state funds or services are exchanged for the delivery of other goods or services.

4. (d) Approval Authority.

   1. (1) Board Approval. The executive director or his/her designee shall present certain contracts to the board for approval, including but not limited to:

      1. (A) any contract exceeding $500,000;
      2. (B) any construction contract exceeding $300,000;
      3. (C) any construction contract change order exceeding $150,000;
      4. (D) any contract for consultant services, as defined in Texas Government Code §2254.021, exceeding $15,000;
      5. (E) any contract for architectural or engineering services;
      6. (F) any contract for start-up residential operations; and
      7. (G) any other contract deemed appropriate for board approval as determined by the executive director.

   2. (2) Agency Approval.

      1. (A) The board delegates authority to the executive director or his/her designee to approve all contracts not listed in paragraph (1) of this subsection.
      2. (B) The board delegates authority to the executive director to approve a contract listed in paragraph (1) of this subsection that is executed in response to an emergency as defined in 34 TAC §20.32.

   3. (3) Other Approvals.

      1. (A) In accordance with Texas Government Code §321.020, all contracts involving the expenditure of funds for outside audit services require approval of the State Auditor's Office.
      2. (B) In accordance with Texas Government Code §402.0212, all contracts involving the expenditure of funds for outside legal services require approval of the Attorney General's Office.
5. (e) Authority to Execute Contracts. The board delegates authority to the executive director to execute all contracts for TYC. This authority may be delegated by the executive director to the deputy executive director or the chief financial officer.

6. (f) Annual Contract Plan.

   1. (1) The executive director or his/her designee will present to the board for its review an annual plan that outlines the agency's anticipated contracting actions for the next fiscal year.
   2. (2) As deemed necessary by the executive director or his/her designee, updates to the contract plan will be provided to the board for review periodically throughout the fiscal year.

7. (g) Adoptions by Reference and Statutory Citations relating to Contracting Responsibilities.

   1. (1) Competitive Solicitations.

      1. (A) TYC complies with Texas Government Code Chapters 2155 and 2156 relating to competitive bidding and requests for proposals.
      2. (B) TYC adopts by reference 34 TAC §20.391 relating to requests for offers.
   2. (2) Historically Underutilized Businesses. TYC adopts by reference rules relating to historically underutilized businesses set forth in 34 TAC Chapter 20, Subchapter B.
   3. (3) 1st Choice-Recycled Content Product. TYC adopts by reference 34 TAC §20.135 relating to first choice-recycled content products.

   4. (4) Consultant Services.

      1. (A) TYC complies with Texas Government Code Chapter 2254, Subchapter B, concerning consulting services contracts.
      2. (B) TYC adopts by reference 34 TAC §5.54 relating to consulting services contracts.
   5. (5) Professional Services. TYC complies with Texas Government Code Chapter 2254, Subchapter A, within the scope of the practice of accounting; architecture; land surveying; medicine; optometry; or professional engineering; or provided in connection with the professional employment or practice of a person who is licensed as a certified public accountant; an architect; a land surveyor; a physician, including a surgeon; an optometrist; or a professional engineer.
   6. (6) Construction Services. In awarding contracts for the construction of buildings and improvements, TYC shall award the contracts in accordance with Texas Government Code Chapter 2166 relating to building construction and acquisition.
   7. (7) Rate Setting. TYC complies with Texas Government Code §2261.151(a) concerning payment and reimbursement methods and rates.
   8. (8) Exemptions from Competitive Bidding Process for Youth Services. In accordance with Texas Government Code Chapter 2155, Subchapter C relating to certain exemptions from competitive bidding, TYC may purchase care and treatment services for youth committed to its care, at rates not to exceed any maximum provided by law, based on each provider's qualifications and demonstrated competence.

Source Note:The provisions of this §385.1101 adopted to be effective July 15, 2011, 36 TexReg 4416; transferred effective June 4, 2012, as published in the Texas Register June 22, 2012, 37 TexReg 4639.