1. (a) Federal and State statutes and regulations control many aspects of purchasing and contract management. The Department and all other parties must comply with them when they are applicable.

2. (b) The Health and Human Services Commission has adopted rules at 1 TAC Chapter 391 (relating to Purchase of Goods and Services by Health and Human Services Agencies). Those rules apply to the purchase of goods and services by this Department, whether for administrative or client use or benefit. The rules in 1 TAC Chapter 391 (relating to Purchase of Goods and Services by Health and Human Services Agencies) govern to the extent of any conflict with a procedure or requirement prescribed by another state agency other than a rule relating to:

   1. (1) historically underutilized businesses; or
   2. (2) the purchase of goods or services from persons with disabilities.
3. (c) The determination of allowable and unallowable costs for residential child-care contracts is governed by 1 TAC Chapter 355 (relating to Reimbursement Rates).

4. (d) The rules of the Health and Human Services Commission do not apply to the following transactions:

   1. (1) the lease, purchase, or lease-purchase of real property;
   2. (2) the award of grants; or
   3. (3) interstate or international agreements executed in accordance with applicable law.
5. (e) Other rules of this Department provide additional procedures, criteria, and requirements concerning specific types of contracts or specific stages of the contract process. For example, Chapter 700 of this title (relating to Child Protective Services) contains additional procedures, criteria, and requirements concerning contracts for residential child care, and Chapter 730 of this title (relating to Legal Services) contains procedures, criteria, and requirements concerning hearings.
6. (f) The commissioner or designee may adopt policies to guide the Department concerning contracting. The policies may interpret statutes, rules, or contract provisions; however, they do not create any new rights or responsibilities for any client or contractor unless the person agrees in writing. The Department may enforce the policies against employees and any person who has agreed to implement the policies. The commissioner or designee may waive policies but may not waive rules.

Source Note:The provisions of this §732.105 adopted to be effective July 12, 2001, 26 TexReg 5074; amended to be effective December 1, 2007, 32 TexReg 7933.