Published in the January 25th Texas Register, The Texas Education Agency (TEA) adopted new §53.1010 – “the Application of Disclosure of Interested Parties“, which specifies that for purposes of contracts with TEA, regional education service centers (RESCs) will operate like any other state agency or governmental agency. The adopted new rule also specifies that, as recipients of state funds, RESCs need to comply with the provisions of Texas Government Code, §2252.908, when contracting with business entities. The adopted new section clarifies the application of Texas Government Code, §2252.908, to RESCs. The January 25th Texas Register publication also contained one public comment where a school district administrator expressed concern about the oversight of RESC operations, staffing, and boards. The TEA response was that this comment was outside the scope of the rule proposal.
The reasoned justification for the rule change states the following: Texas Government Code, §2252.908, prohibits governmental entities and state agencies from entering into certain contracts with business entities unless the appropriate conflicts of interest form is filed by the business entity. The statute defines a governmental entity as a municipality, county, public school district, or special-purpose district or authority. It defines a state agency as a board, commission, office, department, or other agency in the executive, judicial, or legislative branch of state government. It defines a business entity as any entity recognized by law through which business is conducted, including a sole proprietorship, partnership, or corporation. One of the exemptions from the requirements of Texas Government Code, §2252.908, is an interagency contract.
A lack of clarity exists with how RESCs should operate with respect to Texas Government Code, §2252.908. Under Texas Education Code (TEC), Chapter 8, Regional Education Service Centers, RESCs receive treatment as both school districts and state agencies. The legislature has established an accountability system and provided the commissioner regulatory powers with respect to the RESCs. The RESCs receive state direction regarding some of their operations along with state funding. As a consequence, it is unclear whether RESCs should operate as a state agency, governmental entity, or business entity (when contracting with state agencies or governmental entities) for purposes of Texas Government Code, §2252.908. This lack of clarity applies both to when the RESCs contract with state agencies and governmental entities and when they contract with business entities.
TEC, §8.001, authorizes the commissioner to decide any matter concerning the operation and administration of RESCs. Texas Government Code, §2252.908, prevents state funds from being transferred to a private business by a state agency where the private business has relationships that would constitute a conflict of interest with decisionmakers at the governmental agency. When contracting with TEA, transferring state funds to RESCs shares the same native protections of state funds as when TEA contracts with other state agencies or governmental entities, as both groups are exempted from Texas Government Code, §2252.908.
Adopted new §53.1010, Application of Disclosure of Interested Parties, specifies that for purposes of contracts with TEA, RESCs will operate as any other state agency or governmental agency. The adopted new rule also specifies that, as recipients of state funds, RESCs need to comply with the provisions of Texas Government Code, §2252.908, when contracting with business entities.
