INTERAGENCY CONTRACTS

(a) Each state agency shall enter into an interagency contract with the office under Chapter 771, Government Code, to pay the costs incurred by the office in administering this chapter for the benefit of that state agency. (b) Costs payable under the contract include the cost of: (1) services of office employees; (2) materials; and (3) equipment, including computer hardware and software. (c) The amount of the costs to be paid by a state agency under the interagency contract is based on: (1) the number of employees of the agency compared with the total number of employees of all state agencies to which this chapter applies; (2) the dollar value of the agency's property and asset and liability exposure compared to that of all state agencies to which this chapter applies; and (3) the number and aggregate cost of claims and losses incurred by the state agency compared to those incurred by all state agencies to which this chapter applies. (d) The board may by rule establish the formula for allocating the cost of this chapter in an interagency contract in a manner that gives consideration to the factors in Subsection (c) and any other factors it deems relevant, including an agency's risk management expenditures, unique risks, and established programs.