34 Tex. Admin. Code § 5.56 - Appropriation Year Determination
(a)
Definitions. The following words and terms, when used in this section, shall
have the following meanings, unless the context clearly indicates otherwise.
(1) Appropriated money--Money that the
legislature has appropriated through the General Appropriations Act or other
law.
(2) Appropriation year--The
year that the legal authorization for the charge was granted by the
legislature. Multiple appropriation year activity may occur within a single
fiscal year.
(3) Capital asset--A
good other than a consumable that benefits a state agency during more than one
appropriation year.
(4)
Comptroller--The comptroller of public accounts for the State of
Texas.
(5) Consumable--A good that
perishes with use and that, under ordinary circumstances, will be entirely used
during one appropriation year.
(6)
Institution of higher education--Has the meaning assigned by Government Code,
§
2113.205(e)(1).
(7) Internet connection--Access to the
Internet under an interagency contract or a contract with a private Internet
service provider.
(8) State
agency--Has the meaning assigned by Government Code, §
2113.205(e)(2).
(9) Telecommunications service--Includes a
corded telephone service, a cellular telephone and/or data service, a pager
service, an Internet connection service, a cable television service, and a
satellite television service. The term does not include a long distance charge,
a prepaid telephone calling card, a cellular telephone roaming charge, and any
other charge that is not imposed monthly as a flat rate.
(10) Utility service--
(A) electricity, water, natural gas, or
propane, if furnished by a utility;
(B) a telecommunications service;
and
(C) a wastewater treatment
service, a well water service, or a waste disposal service, if provided by a
utility.
(b)
General requirements and exceptions.
(1) The
comptroller may require a state agency to make available to the comptroller the
documentation that supports the agency's classification of a purchase or
payment as a consumable, service, capital asset, or grant.
(2) This section does not apply to the extent
it conflicts with state law, including a valid rider or other provision of the
General Appropriations Act.
(3)
This section does not apply to a purchase that is paid with money that is not
appropriated money.
(c)
Purchases of consumables.
(1) Except as
provided in paragraph (2) of this subsection, a state agency must charge its
purchase of a consumable to the appropriation year in which delivery of the
consumable occurs.
(2) Except as
provided in paragraph (3) of this subsection, a state agency may not charge its
purchase of a consumable to a particular appropriation year if the agency could
not reasonably have anticipated that the consumable would be consumed entirely
during that year.
(3) A state
agency may charge the appropriation year that immediately precedes the
appropriation year in which a consumable is delivered for the purchase of the
consumable if:
(A) the agency entered into a
contract for the consumable during the immediately preceding appropriation year
and, at the time of entrance into the contract, the agency reasonably
anticipated that the consumable would be delivered during that year;
(B) delivery of the consumable was delayed
until the next appropriation year for reasons beyond the agency's reasonable
control; and
(C) the order quantity
was no more than reasonably could have been consumed before the end of the
immediately preceding appropriation year had delivery occurred as originally
anticipated.
(d) Purchases of services.
(1) A state agency must charge its purchase
of a service to the appropriation year in which the service is
rendered.
(2) A state agency must
prorate its payments under a contract that is performed over more than one
appropriation year so that each appropriation year is charged only for the
services that are rendered during that year.
(e) Purchases of capital assets.
(1) Except as provided in paragraphs (2) -
(3) of this subsection, a state agency must charge its purchase of a capital
asset to the appropriation year in which the agency enters into a valid
contract for the purchase. The signing date of a validly executed contract is
the determining factor, the delivery date of the asset is irrelevant.
(2) A state agency may contract during a
particular appropriation year for the purchase of a capital asset in reliance
on an existing appropriation for a subsequent appropriation year within the
following biennium so long as payment for the asset does not occur before the
start of the subsequent year.
(3) A
payment under a lease-purchase agreement must be charged to the appropriation
year in which the payment is made.
(f) Grant payments.
(1) A state agency's payment of a grant to an
individual or entity must be charged to the appropriation year in which the
agency contracts, awards, or otherwise legally commits to pay the grant if an
appropriation for that year and purpose is available. Otherwise, the payment
must be charged to the first appropriation year for which an appropriation is
available.
(2) This subsection
applies regardless of how the grantee will use the grant money.
(3) This subsection applies even if the
payments under a grant contract will be made over more than one appropriation
year.
(g) Contracts for
the purchase of a combination of consumables, services, and capital assets.
(1) This subsection applies only to:
(A) a contract that involves the purchase of
two or more of the following: a consumable, a service, or a capital asset;
or
(B) two or more closely related
contracts that together involve the purchase of two or more of the following: a
consumable, a service, or a capital asset.
(2) If the dominant purpose of one or more
contracts is to purchase a consumable, then subsection (c) of this section
governs the determination of the correct appropriation year to charge for the
purchases.
(3) If the dominant
purpose of one or more contracts is to purchase a service, then subsection (d)
of this section governs the determination of the correct appropriation year to
charge for the purchases.
(4) If
the dominant purpose of one or more contracts is to purchase a capital asset,
then subsection (e) of this section governs the determination of the correct
appropriation year to charge for the purchases.
(h) Purchase options. The appropriation year
in which a state agency exercises a contractual option to purchase a good, a
service, or a capital asset must be charged for the cost of exercising that
option, subject to this section's requirements for determining the correct
appropriation year to charge for the purchase.
(i) Periodical subscriptions, maintenance
contracts, post office box rentals, insurance, Internet connections, and surety
or honesty bonds.
(1) A state agency may use
money that is appropriated for a particular appropriation year to pay the
entire cost or amount of a periodical subscription, a maintenance contract, a
post office box rental, insurance, an Internet connection, or a surety or
honesty bond, regardless of whether the subscription, contract, rental,
insurance, connection, or bond covers more than one appropriation
year.
(2) This subsection prevails
over subsections (c) - (h) of this section to the extent of any
conflict.
(j) Utility
services.
(1) A state agency may use money
that is appropriated for a particular appropriation year to pay for a utility
service that is provided during that appropriation year and September of the
next appropriation year.
(2) This
subsection prevails over subsections (c) - (h) of this section to the extent of
any conflict.
Notes
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