(a) Purpose. The purpose of this rule is to establish the approval authority and responsibilities for executing contracts required by the agency.     
      (b) Applicability. This rule applies to all contracts entered into by the agency.     
      (c) Definitions. As used in this section, the following terms shall have the following meanings, unless the context clearly indicates otherwise.      
        (1) Contract--means a written agreement between the agency and a contractor for goods or services. As used in this section, "contract" includes the following: interagency contracts with other government entities; interlocal agreements with other government entities; and other documents in which funds or services allocated to the agency are exchanged for the delivery of other goods or services.       
        (2) Value--means the estimated dollar amount the agency may be obligated to pay pursuant to the contract and all executed and proposed amendments, extensions, and renewals of the contract. The agency shall base its determination of the proposed length of and compensation during the original term and renewal periods of the contract on best business practices, state fiscal standards, and applicable law, procedures, and regulations. The agency's determination of contract value reflects the definition set forth in the State of Texas Contract Management Guide as developed by the comptroller under Government Code, §2262.051.       
      (d) Approval Authority.      
        (1) Commission Approval. The director and librarian or designee shall present certain contracts to the commission for approval. The commission shall consider for approval:                  (A) any contract or amendment with a value expected to exceed $1 million;                   (B) any amendment to a contract that results in the contract value exceeding $1 million;                   (C) any contract or amendment to a contract that relates to the TexShare Library Consortium regardless of overall contract value; and                   (D) any other contract deemed appropriate for commission approval as determined by the director and librarian in consultation with the chair of the commission.         
        (2) Agency Approval.                  (A) The commission delegates authority to the director and librarian or designee to approve all contracts not listed in paragraph (1) of this subsection;                   (B) The commission delegates authority to the director and librarian or designee to approve contracts with an overall contract value that exceeds $1 million as approved by commission order; and                   (C) The commission delegates authority to the director and librarian to approve a purchase request or contract listed in paragraph (1) of this subsection for an emergency as defined in 34 TAC §20.25 (relating to Definitions), or to avoid undue material additional cost to the state. The director and librarian shall report any purchase requests or contracts executed by the director and librarian under this authority to the commission chair prior to execution of any such purchase requests or contracts.         
      (e) Authority to Execute Contracts. The commission delegates authority to the director and librarian to execute all contracts for the agency. This authority may be delegated by the director and librarian to the assistant state librarian or other designee.     
      (f) Contract Planning. The agency will present to the commission for information a contract plan for the next fiscal year that outlines the agency's anticipated contracting actions that exceed $500,000. The director and librarian or designee will present updates to the contract plan to the commission for information periodically throughout the fiscal year.     
     Source Note:        The provisions of this §2.77 adopted to be effective June 25, 2023, 48 TexReg 3223; amended to be effective March 12, 2024, 49 TexReg 1458