TITLE social-services-and-assistance

Part I. Texas Department of Human Services

Chapter 45. Community Living Assistance and Support Services

The Texas Department of Human Services (DHS) proposes new chapter 45, Community Living Assistance and Support Services, concerning suspension and termination of services, program and claim payment requirements, and fiscal monitoring, for its Community Living Assistance and Support Services (CLASS) program. The purpose of the new chapter is to establish rules for the CLASS program. These rules clarify when services to a participant must be suspended and when services must be terminated. The process for suspension or termination of services is defined. Also defined are the documentation requirements for provider payment, specifying what constitutes administrative and financial errors and establishing provider sanctions for errors identified. A sanction of 100% of the paid unit rate is applied to financial errors identified on the documentation reviewed, eliminating payment for services not authorized or not delivered according to program rules. A sanction of 12% of the unit rate is applied to the paid units with administrative errors on the documentation reviewed, reducing payment for administrative services not performed. Administrative and financial errors are not extended beyond the documentation reviewed. Compliance with these rules improves fiscal accountability.

Eric M. Bost, commissioner, has determined that for the first five-year period the sections are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the sections.

Mr. Bost also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of enforcing the sections will be to initiate a sanction of 12% for administrative errors, which is the percentage of the reimbursement paid by the department that is attributed to administration by the provider, and initiate a sanction of 100% for financial errors eliminating payment for services that are not authorized and reducing the cost of services that are not delivered according to program rules and policies as established in current rules. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the proposed sections.

Questions about the content of this proposal may be directed to Don Mann at (512) 438-3642 in DHS's Long-Term Care section. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-010, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

Subchapter B. Suspension and Termination of Services

40 TAC §§45.201, 45.203, 45.205, 45.207, 45.209, 45.211, 45.213, 45.215

The new sections are proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The new sections implement the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

§45.201.Termination of Services to Current Participants.

(a)

The case management agency (CMA) with concurrence by the Texas Department of Human Services (DHS) must terminate Community Living Assistance and Support Services (CLASS) services if one or more circumstances specified in paragraphs (1)-(17) of this subsection occur. The CMA and direct services agency (DSA) must provide written documentation to DHS to support the reason for denial of services.

(1)

The participant leaves the state for more than 90 days or moves to a county in which the CLASS program does not exist.

(2)

The participant dies.

(3)

The participant has resided in an institutional setting for longer than 120 days. An institution includes an acute care hospital, state hospital, rehabilitation hospital, state school, nursing home or intermediate care facility for persons with mental retardation/related condition (ICF-MR/RC). DHS will retain authority to extend this time in extraordinary circumstances.

(4)

The participant requests in writing that services end.

(5)

The participant is not financially eligible for Medicaid benefits.

(6)

The participant does not meet the level of care criteria for ICF-MR/RC.

(7)

The estimated cost of the CLASS services necessary to adequately meet the needs of the participant exceeds the CLASS cost ceiling.

(8)

Two DSA providers have refused to serve the participant on the basis of a reasonable expectation that the participant's medical, nursing, and social needs cannot be met adequately in the participant's residence.

(9)

The participant/responsible party or court-appointed guardian refuses to sign the individual service plan (ISP). A referral will be made to the county judge to determine whether the court-appointed guardian is acting in the best interests of the CLASS participant.

(10)

The participant refuses to comply with his ISP/individual program plan, including situations in which he refuses services and threatens his own health and safety.

(11)

The participant or someone in the participant's home deliberately threatens the health or safety of the service provider.

(12)

The participant is incarcerated for more than 30 days.

(13)

The participant has no need for habilitation services as determined by the interdisciplinary team.

(14)

The participant or someone in the participant's home has subjected the person providing services to sexual harassment.

(15)

The participant or someone in the participant's home has a substantiated pattern of discrimination against the service provider(s) on the basis of race, color, national origin, age, sex, disability, political beliefs, or religion that has not improved with appropriate intervention.

(16)

The participant or someone in the participant's home has a substantiated use of illegal drugs or has illegal drugs readily available within sight of the service provider.

(17)

The participant fails to pay his qualified income trust copayment.

(b)

Following approval by DHS, the case manager provides written notice to the participant and provides the DSA of the effective date of termination and provides the participant with written notice of the right to appeal.

(c)

If the participant appeals the denial within 12 days of written notification, the case manager continues CLASS services until notification of the decision by the DHS hearing officer. The case manager may not reduce services until the outcome of the appeal is known. Services do not continue during the appeal process in situations where the participant has been determined to be a threat to the health and safety of himself or others.

§45.203.Automatic Suspension of Community Living Assistance and Support Services (CLASS).

The case management agency and direct services agency must automatically suspend CLASS services to a participant when:

(1)

the participant is admitted to an institution. An institution includes acute care hospital, state hospital, rehabilitation hospital, state school, intermediate care facility for persons with mental retardation, or a nursing home;

(2)

the participant temporarily leaves the service area for vacations or other personal business unless special arrangements have been authorized by the direct services agency or the Texas Department of Human Services (DHS);

(3)

the participant dies;

(4)

the participant requests in writing that services end;

(5)

the participant's physician refuses to sign orders or rescinds existing orders for the service;

(6)

DHS denies the participant's eligibility;

(7)

the participant or someone in the participant's home deliberately threatens the health or safety of the service provider;

(8)

DHS terminates the contract with the provider; or

(9)

the participant is incarcerated.

§45.205.Suspension of Community Living Assistance and Support Services for Cause.

The direct services agency and case management agency may suspend services with approval by the Texas Department of Human Services and documentation to support that one or more of the following has occurred:

(1)

The participant or someone in the participant's home sexually harasses the service provider(s).

(2)

The participant or someone in the participant's home has a pattern of discrimination against the service provider(s) on the basis of race, color, national origin, age, sex, disability, political beliefs, or religion that has not improved with appropriate intervention.

(3)

The participant or someone in the participant's home openly uses illegal drugs or has illegal drugs readily available within sight of the service provider.

§45.207.Notification of Suspension.

(a)

The direct services agency (DSA) must verbally notify the case manager or staff in the case manager's office about the reason the DSA agency suspended services within 24 hours after service suspension. Written notification on the case information form must be sent to the case manager within two days of service suspension.

(b)

The case manager performs any necessary face-to-face contacts necessary to evaluate and document the reasons for suspension described in §45.203(a)(3)-(5) and (7) of this title (relating to Automatic Suspension of Community Living Assistance and Support Services) and §45.205(a)(1)-(3) of this title (relating to Suspension of Community Living Assistance and Support Services for Cause). The case manager sends to the Texas Department of Human Services (DHS) Community Living Assistance and Support Services (CLASS) program staff all written documentation provided by the DSA and case manager to substantiate the suspension within five days from the suspension.

(c)

The case manager, DSA, and DHS CLASS program staff review all written and verbal documentation provided by the DSA and other individuals connected with the suspension within five days from the date the suspension occurred.

(d)

If the documentation does not support the suspension of services as determined by DHS CLASS program staff, the DSA will be notified to reinstate services to the participant.

(e)

If the documentation does support the suspension of services as determined by DHS CLASS program staff, the case manager will notify the participant that CLASS services will be terminated as set out in §45.201 of this title (relating to Termination of Services to Current Participants) and inform them of the right to appeal.

§45.209.Sanction.

The Texas Department of Human Services may sanction up to and including contract termination any provider agency that has:

(1)

suspended services to a participant for a reason other than what is allowed in §45.203 of this title (relating to Automatic Suspension of Community Living Assistance and Support Services) or §45.205 of this title (relating to Suspension of Community Living Assistance and Support Services for Cause); or

(2)

uses the information cited in §45.203 of this title (relating to Automatic Suspension of Community Living Assistance and Support Services) or §45.205 of this title (relating to Suspension of Community Living Assistance and Support Services for Cause) to suspend a participant when the provider agency knew or should have known that the cited information did not apply to the participant.

§45.211.Waiting List.

The applicant is placed on the Community Living Assistance and Support Services (CLASS) waiting list on a first-come, first-served basis. The applicant must:

(1)

contact the Texas Department of Human Services CLASS administrative assistant or program staff and provide enough information to complete the CLASS application/summary of applicant's needs for services form; and

(2)

be responsible for the update of any information such as address and telephone number; and

(3)

reside in the county where they are placing their name on the waiting list if CLASS services are available in that county; or

(4)

place their name on the waiting list in the nearest county in which CLASS services are available if CLASS services are not available in the county in which they currently reside.

§45.213.Use of Non-Waiver Services.

Community Living Assistance and Support Services (CLASS) applicants and participants must utilize all services available through other funding sources. As a Medicaid program, the CLASS program is payor of last resort.

§45.215.Authorization of Services.

Units of service must be prior authorized on the individual service plan to be eligible for reimbursement through the Community Living Assistance and Support Services program except in cases of documented medical emergencies.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on January 26, 1998.

TRD-9801125

Glenn Scott

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: March 9, 1998

For further information, please call: (512) 438-3765


Subchapter C. Program and Claim Payment Requirements

40 TAC §§45.301, 45.303, 45.305, 45.307, 45.309, 45.311, 45.313, 45.315, 45.317, 45.319, 45.321, 45.323, 45.325, 45.327, 45.329, 45.331, 45.333, 45.335, 45.337, 45.339, 45.341, 45.343

The new sections are proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The new sections implement the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

§45.301.Service Array for Community Living Assistance and Support Services (CLASS) Providers.

CLASS providers must provide the array of CLASS Services identified in paragraphs (1-11) of this section in accordance with the CLASS individual service plan form, through its own employees, subcontractors, or personal service agreements with qualified individuals. Services include:

(1)

habilitation;

(2)

nursing;

(3)

physical therapy;

(4)

occupational therapy;

(5)

speech pathology;

(6)

psychological services;

(7)

adaptive aids/vehicle modifications;

(8)

minor home modifications;

(9)

respite care (in-home);

(10)

respite (out-of-home); and

(11)

case management.

§45.303.Cost Effective Purchases of Adaptive Aids.

(a)

For any single adaptive aid expenditure costing less than $500, the direct services agency (DSA) must:

(1)

determine and document the needs and preferences of the participant for the adaptive aid;

(2)

document the necessity for the adaptive aid;

(3)

consider renting the adaptive aid on a short-term basis if the participant's needs or desires cannot be accurately determined at the time of the assessment;

(4)

obtain comparative price quotes or use a price list to document prices of the adaptive aid from a minimum of three suppliers or annually select a supplier based on the lowest prices from the quotes/price list for the main types of adaptive aids that the agency has been purchasing;

(5)

document the justification of the selection, including cost, delivery time of item, record of quality services, access to loaners during repairs, repair history, and warranties. For those suppliers selected, document in the vendor records the names of the suppliers from whom all quotes/price lists were obtained, the amount of the quotes/price lists, the items for which the quotes/price lists were requested, and the dates the quotes/price lists were obtained; and

(6)

have a nurse, therapist, or other appropriate professional conduct a home visit within 14 Texas Department of Human Services (DHS) work days from the date of delivery to verify the adaptive aid meets the needs of the participant, that orientation was provided to the participant in the use of the adaptive aid, and document completion of purchase and satisfaction of the participant.

(b)

For any single adaptive aid expenditure costing $500 or more, in addition to complying with the requirements listed in subsection (a)(1)-(6) of this section, the DSA must:

(1)

obtain written specifications for the adaptive aid from a licensed occupational therapist, physical therapist, speech pathologist, or other appropriate professional specializing in assessments for assistive technology or adaptive aids;

(2)

obtain a minimum of three written bids if not using price lists or price quotes as identified under subsection (a)(5)-(6) of this section, and document the justification of the selection including cost, delivery time of item, record of quality services, access to loaners during repairs, repair history, and warranties; and

(3)

document justification when not accepting the lowest bid, such as, delivery time of item, record of quality services, access to loaners during repairs, repair history, and warranties.

§45.305.Time Frames for Adaptive Aids Costing Less Than $500.

(a)

The direct services agency (DSA) must ensure purchase and delivery of any adaptive aid/vehicle modification within 14 Texas Department of Human Services (DHS) work days from the date purchase of the adaptive aid/vehicle modification is authorized, using either the effective date of the individual service plan form, or the date the form is received, whichever is later.

(b)

If the DSA cannot ensure delivery of an adaptive aid/vehicle modification within 14 DHS work days from the date of receipt of DHS's authorization, before the 14th day the agency must submit to the case manager the case information form containing an explanation why the adaptive aid/vehicle modification cannot be delivered within the required time frame and a new proposed date for delivery.

§45.307.Time Frames for Adaptive Aids Costing $500 or More.

(a)

The direct services agency (DSA) must ensure purchase and delivery of any adaptive aid/vehicle modification within 30 Texas Department of Human Services (DHS) work days from the date purchase of the adaptive aid/vehicle modification is authorized, using either the effective date of the individual service plan form, or the date the form is received, whichever is later.

(b)

If the DSA cannot ensure delivery of an adaptive aid/vehicle modification within 30 work days from the date of receipt of DHS's authorization, before the 30th day the agency must submit to the case manager the case information form containing an explanation why the adaptive aid/vehicle modification cannot be delivered within the required time frame and including a new proposed date for the delivery.

§45.309.Cost Effective Purchases of Medical Supplies.

The direct services agency must:

(1)

prior to the selection of medical supplies, obtain comparative price quotes or use a price list to document prices of the medical supplies from a minimum of three suppliers;

(2)

at least annually select supplies based on the lowest prices from the quotes/price list for the main types of supplies that the agency has been purchasing, and document the justification of the selection including cost, delivery time of item and record of quality services; and

(3)

document the basis for selection and for those selected, document in the vendor records the names of the suppliers from whom all quotes/price lists were obtained, the amount of the quotes/price lists, the items for which the quotes/price lists were requested, and the dates the quotes/price lists were obtained.

§45.311.Time Frames for Medical Supplies.

(a)

The direct services agency (DSA) is responsible for assuring the purchase and delivery of any authorized medical supplies within five Texas Department of Human Services (DHS) work days from the waiver service initiation date.

(b)

On existing cases, the DSA must deliver medical supplies within five DHS work days from the date purchase of the supplies is authorized, counting from the effective date of the individual service plan form, or the date the form is received, whichever is later.

(c)

If the DSA cannot ensure delivery of a medical supply within five DHS work days from the date of receipt of DHS's authorization, the DSA must submit the case information form to the case manager before the fifth day, containing an explanation why the medical supply cannot be delivered within the required time frame and a new proposed date for the delivery.

§45.313.Time Frames for Emergency Purchases of Medical Supplies.

If the direct services agency (DSA) or case manager identifies a need for the emergency purchase and delivery of a medical supply, the DSA must deliver the item within two Texas Department of Human Services work days from the date that the need for the medical supply is identified.

§45.315.Medical Supplies on Hand.

At least twice a year, the direct services agency must verify the quantity of the medical supplies that the participant has on hand, and if necessary, adjust the service plan, or modify the delivery schedule for the medical supplies. The results of this verification must be documented in the case conference notes.

§45.317.Freight Charges for Medical Supplies and Adaptive Aids.

The direct services agency must assure that if medical supplies or adaptive aids are delivered to the participant by means of any commercial carrier, such as United Parcel Services or the United States Postal Service, the most cost-effective carrier is used. Overnight delivery should not be used unless it is an emergency purchase that cannot be purchased locally and delivered by the next day after determining the need.

§45.319.Cost Effective Purchases of Minor Home Modifications.

The direct services agency (DSA) must:

(1)

determine and document the needs and preferences of the participant for the minor home modification;

(2)

document the necessity for the minor home modification;

(3)

obtain written specifications for any project expenditure costing $1000 or more which will be used to procure bids and validate the completed job;

(4)

request a minimum of three written bids based on the specifications for any single expenditure costing $1000 or more;

(5)

select a bidder to provide the modification and document the justification when not selecting the lowest bid for the selection, including cost, completion time of modification, record of quality service, timely response to repair requests, and warranties; and

(6)

inspect the minor home modification for completion, compliance with the written specifications, if applicable, and quality of workmanship within seven Texas Department of Human Services (DHS) work days from the date the work is completed.

(A)

The DSA must ensure that a qualified person inspects completed work to ensure all work was done to written specifications, if applicable, and the Texas Accessibility Standards.

(B)

The inspector cannot be the attendant.

(C)

Once the inspection is concluded and the modification is completed, the DSA must send the case information form to the case manager within seven DHS work days from the date the modification is completed.

§45.321.Time Frames for Minor Home Modifications Costing $1000 or More.

(a)

The Community Living Assistance and Support Services direct services agency (DSA) is responsible for assuring the completion of all minor home modifications within 60 Texas Department of Human Services (DHS) work days from the date the minor home modification is authorized, counting from either the effective date of the individual service plan form, or the date the form is received, whichever is later.

(b)

If the modification cannot be completed within 60 DHS work days from the date the minor home modification is authorized, the DSA must submit the case information form to the case manager prior to the 60th day, explaining why the modification cannot be completed on time and including a new projected date of completion for the modification.

§45.323.Time Frames for Minor Home Modifications Costing Less Than $1000.

(a)

The Community Living Assistance and Support Services direct services agency (DSA) is responsible for assuring the completion of all minor home modifications within 30 Texas Department of Human Services (DHS) work days from the date the minor home modification is authorized, counting from either the effective date of the individual service plan form, or the date the form is received, whichever is later.

(b)

If the modification cannot be completed within 30 DHS work days from the date the minor home modification is authorized, the DSA must submit the case information form to the case manager prior to the 60th day, explaining why the modification cannot be completed on time and including a new projected date of completion for the modification.

§45.325.Landlord Approval for Minor Home Modifications.

Prior to beginning the home modifications, the direct services agency must obtain written approval from the owner of the building for the proposed modifications if the rental agreement does not provide such approval. Additionally, the direct services agency must obtain any applicable building permits prior to starting the home modifications.

§45.327.Accountability for Minor Home Modifications.

If a minor home modification requires repair or replacement within one year of completion, the Community Living Assistance and Support Services direct service agency must repair or replace the minor home modification without billing the Texas Department of Human Services or the participant, unless

(1)

the finished modification met appropriate specifications and bid requirements agreed upon before the job was started; or

(2)

the repair or replacement is required due to circumstances beyond the control of the participant or participant's family members, or due to abuse by the participant or family members.

§45.329.Completion of Minor Home Modifications.

The Community Living Assistance and Support Services direct services provider must maintain in the client record a copy of the fully executed receipt for the minor home modification attesting to the quality of the workmanship and whether or not the participant is satisfied.

§45.331.Billable Units.

The following activities may be billed through the Community Living Assistance and Support Services (CLASS) program by the CLASS providers.

(1)

Nursing services:

(A)

direct participant contact;

(B)

participation on the interdisciplinary team (IDT):

(i)

when the participant has an identified need for the service; and

(ii)

for actual time spent in the capacity of the respective discipline. Time spent as the official representative of the direct services agency (DSA) must be billed as habilitation;

(C)

time spent in delegating, training, and supervising attendants and substitutes in the delivery of nursing tasks that have been delegated;

(D)

time spent in providing nursing tasks that had been delegated to an attendant in order to prevent a service break, if no attendant can be found;

(E)

time spent in training family members, neighbors, and other informal support providers to provide needed nursing or personal care tasks; and

(F)

time spent in performing the annual reassessment, which includes actual participant contact and documentation of assessment forms and care plan.

(2)

Specialized therapy (occupational therapy, physical therapy, speech pathology):

(A)

direct participant contact;

(B)

participation on the IDT:

(i)

when the participant has an identified need for the service; and

(ii)

for actual time spent in the capacity of the respective discipline. Time spent as the official representative of the DSA must be billed as habilitation; and

(C)

time for doing evaluations for specialized equipment.

(3)

Habilitation services, which include:

(A)

assisting with the performance of personal care tasks;

(B)

performing delegated health-related tasks;

(C)

training the participant to perform the activities of daily living as identified in the habilitation plan;

(D)

providing reinforcement of therapy goals;

(E)

participating in IDT meetings;

(F)

accompanying the participant to habilitative activities as listed in the participant's individual program plan; and

(G)

performing chores services for the participant.

(4)

Adaptive aids/vehicular modifications and minor home modifications - delivery of a prior approved, medically necessary item or minor home modification.

(A)

Billable items for medical supplies include the invoice cost, including freight charges and sales tax, of the medical supply and the requisition fee.

(B)

Billable items for minor home modifications include the invoice cost of labor, materials, sales tax, and the requisition fee.

(C)

Billable items for adaptive aids include the invoice cost of the item, including freight charges and sales tax, and the requisition fee.

(5)

In-home respite - relief for the unpaid primary caregiver.

(6)

Out-of-home respite - relief for the unpaid primary caregiver.

§45.333.Non-Billable Time and Activities.

The following activities are not considered billable activities under the Community Living Assistance and Support Services (CLASS) program for CLASS providers:

(1)

supervision of habilitation attendants performing personal assistance tasks, unless the attendant is delivering nursing tasks delegated by a registered nurse;

(2)

phone calls, letters, or meetings with the Texas Department of Human Services (DHS) or community resources;

(3)

administrative meetings or staff meetings;

(4)

in-service training, continuing education, or conferences;

(5)

employee conferences or evaluations;

(6)

filing claims for services;

(7)

traveling to and from the participant's home;

(8)

processing paperwork, completing records or reports, except for the annual reassessment;

(9)

home modifications or adaptive aids/vehicular modifications that are not listed in the CLASS Provider Manual as covered items nor approved by authorized DHS staff. Billable items on the invoice include the actual cost of obtaining specifications, labor, materials, delivery and inspection costs;

(10)

collateral contact when that contact is between:

(A)

provider employees; and

(B)

individuals providing services to participants under:

(i)

personal service agreements with the CLASS provider; or

(ii)

subcontracts with other CLASS agencies;

(11)

billing for services that are considered to be duplicate services or mutually exclusive, as identified in §45.335 of this title (relating to Mutually Exclusive Services);

(12)

"down-time" such as illness, holidays, vacation time, etc;

(13)

collateral contact (telephone or face-to-face) to assist or discuss a specific participant (for example, helping access community services); and

(14)

leaving a phone message on a recorder, or leaving a message with anyone other than the participant or parent/legal guardian.

§45.335.Mutually Exclusive Services.

The following waiver services are considered to be mutually exclusive and are not allowed under the waiver.

(1)

A participant receiving in-home respite or out-of-home respite may not receive habilitation for the same period of time.

(2)

A participant residing in an institutional setting may not receive any Community Living Assistance and Support Services (CLASS) services.

(3)

CLASS cannot provide a service that is available to the participant through a non- waiver source.

§45.337.Service Claim Limits.

(a)

A maximum of four hours may be billed under nursing services by the registered nurse to decide whether or not to delegate a nursing task to a direct services agency (DSA) attendant.

(b)

In order to avoid service breaks, the Community Living Assistance and Support Services DSA may bill for authorized habilitation units performed by a licensed nurse for a maximum period of 10 days during the participant's individual service plan (ISP) effective period:

(1)

The hours performed by the nurse may be billed at the nursing rate only if there are no attendants available to perform the needed delegated nursing tasks and only licensed nurses can be recruited.

(2)

The documentation must include all efforts the provider agency made to find an attendant to deliver delegated nursing tasks to prevent a break in service.

(c)

Components of minor home modifications cannot be billed without an invoice or in more than three billings.

§45.339.Claims and Service Delivery Records.

(a)

The Community Living Assistance and Support Services (CLASS) provider is liable for monetary exceptions if the monthly claims do not correspond with the provider's service authorization and service delivery records.

(b)

The provider must maintain the following records:

(1)

approval of application of CLASS form;

(2)

CLASS individual service plan form pages 1 and 2;

(3)

CLASS documentation of services delivered form for any billing submitted for reimbursement or a facsimile previously approved by the waiver manager;

(4)

bids for home modifications costing $500 or more;

(5)

bids for any single expenditure for adaptive aids/vehicle modifications costing $500 or more and comparative price quotes or a price list;

(6)

annual comparative price quotes/lists for the purchase of medical supplies;

(7)

annual comparative price quotes/lists for the purchase of adaptive aids;

(8)

receipts from the contractor for minor home modifications provided, documenting the date of completion and the cost of the modification;

(9)

any applicable building permits;

(10)

documentation of completion of purchase;

(11)

specifications for minor home modifications;

(12)

receipts for the completed minor home modification from the CLASS direct services agency (DSA). The minor home modification must be completed before billing the Texas Department of Human Services for the modification and:

(A)

the DSA must attest that the workmanship is acceptable;

(B)

the DSA must attest that the modification is completed according to the specifications of the bid, if applicable;

(C)

the CLASS documentation of services delivered form must be signed by the DSA representative;

(D)

a final inspection sheet must be signed by the participant or the responsible party, the DSA representative and an inspector, stating that the home modifications were completed in accordance to the specification sheet; and

(E)

document whether or not the participant is satisfied with the home modification;

(13)

documentation of the annual selection of a supplier;

(14)

copies of case information forms sent to the case manager upon completion of the minor home modification;

(15)

receipts for the purchase of adaptive aids/vehicle modifications showing the cost of the item, the date the item was delivered to the participant, and signed confirmation delivery by the participant or responsible party;

(16)

written approval from the homeowner for modifications to be made;

(17)

documented justification for not accepting the lowest bids or quotes for adaptive aids, medical supplies, vehicle modifications or minor home modifications, where applicable; and

(18)

documentation of the basis of the annual selection of a supplier if using price lists/price quotes.

§45.341.Monetary Exceptions.

(a)

Providers of Community Living Assistance and Support Services (CLASS) must document on the CLASS documentation of services delivered form or an approved facsimile for services reimbursed on an hourly basis as authorized on the individual service plan, including:

(1)

box 2 must show the month and year service was delivered;

(2)

box 10 must show what type of service was delivered;

(3)

section D must record the units of service delivered;

(4)

section D must indicate the dates of service delivery;

(5)

section E must show the name and dated signature of the individual providing waiver services or the signature of the designated representative; and

(6)

the individual providing the service or designated representative must sign and date the CLASS documentation of services delivered form with the month, day, and year.

(b)

If documentation does not support the monthly claims, the CLASS provider may be liable for monetary exceptions.

(c)

The CLASS provider must designate a timekeeper to verify that the service units recorded on the CLASS documentation of services delivered form were worked and that the tasks assigned were completed. The timekeeper may be a registered nurse supervisor.

(d)

The employee must enter the daily total time and monthly total hours. The CLASS documentation of services delivered form, or an approved facsimile, may be signed by the direct services agency (DSA) employee who has designated signature authority if an employee is unable to complete and sign the CLASS documentation of services delivered form. The CLASS provider must document in writing the reasons the employee is unable to complete and sign the CLASS documentation of services delivered form, or the approved facsimile, and must document in writing who is authorized to make these entries. The documentation may be a written statement that includes the following:

(1)

the employee's name;

(2)

a brief summary of what portion of the CLASS documentation of services delivered form, or the approved facsimile, the employee is unable to complete;

(3)

the name and relationship of the person who has been designated to complete the form for the employee; and

(4)

the authorized employee's signature and date.

(e)

The timekeeper may add the monthly total of time with no exception taken, so long as the provider completes the daily total time.

§45.343.Unallowable Services.

The Community Living Assistance and Support Services program does not provide the following items to participants:

(1)

purchase or long-term lease of vehicles, or vehicle repair and/or maintenance;

(2)

past due expenses;

(3)

income taxes;

(4)

automobile, life, or accident insurance;

(5)

death benefits, burial policies, or funeral expenses;

(6)

costs for allowable services that have not been prior authorized;

(7)

food, shelter, utilities, general home repairs, electrical upgrades from 110 volt to 220 volt outlets, major home renovations, remodeling, home furnishings, and yard work;

(8)

items or services covered by other third-party resources such as private insurance, Medicare, or other Medicaid benefits;

(9)

school tuition or fees, or equipment/items/services that are provided through the public school system; or

(10)

swimming pools or swimming pool repairs, maintenance, or supplies.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on January 26, 1998.

TRD-9801126

Glenn Scott

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: March 9, 1998

For further information, please call: (512) 438-3765


Subchapter D. Fiscal Monitoring

40 TAC §45.401, §45.403

The new sections are proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The new sections implement the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

§45.401.Administrative Errors.

(a)

A recoupment of 12% of the paid unit rate is the administrative error exception for services billed on an hourly basis. It represents the administrative portion of the rate and is applied to the unit(s) of service on the documentation reviewed in the Community Living Assistance and Support Services (CLASS) program. This exception is not extrapolated.

(b)

Administrative errors include, but are not limited to, the items in paragraphs (1)-(3) of this subsection:

(1)

Administrative errors on the Texas Department of Human Services's (DHS) documentation of services delivered form, or the prior approved facsimile, include the following:

(A)

The provider agency leaves the month and year of service blank in item 2, section A. DHS applies the error to the total number of units documented on the time sheet.

(B)

The timekeeper fails to enter a date of signature to certify the total number of hours the attendant, nurse, therapist, or other professional worked. DHS applies the error to the total number of units documented on the time sheet.

(C)

The timekeeper corrects the date of signature but fails to initial the correction. DHS applies the error to the number of units reimbursed after the earliest signature date.

(D)

The timekeeper enters an illegible date of signature or makes an illegible correction to the date. DHS applies the error to the total number of units documented on the time sheet.

(E)

The timekeeper enters a date of signature that is before the date of the last day services are delivered. DHS applies the error to the total number of units reimbursed after the signature date.

(F)

The timekeeper fails to sign CLASS documentation of services delivered form. DHS applies the error to the total number of units documented on the time sheet.

(G)

The timekeeper uses a signature stamp, but fails to initial the stamped signature. DHS applies the error to the total number of units documented on the time sheet.

(H)

The attendant, nurse, therapist, other professional, and/or timekeeper uses liquid paper/correction fluid to correct an entry in the record of time, signature, or date portion of the documentation of services delivered form. DHS applies the error to the total number of units documented on the time sheet. If the liquid paper/correction fluid is used only on a daily entry in the record of time, DHS applies the error only to the total number of units reimbursed for that day.

(I)

The attendant, nurse, therapist, other professional, and/or timekeeper makes an illegible entry in or an illegible correction to any portion of the record of time column. DHS applies the error to the total number of units reimbursed for the days in which entries are illegible.

(J)

The attendant fails to initial an increase in the daily time or the monthly total of hours for the pay period. DHS applies the error to the number of units reimbursed in excess of the original entry.

(K)

The attendant, nurse, therapist, other professional, or other agency representative fails to sign the documentation of services delivered form or approved facsimile. DHS applies the error to the total number of units documented on the time sheet.

(L)

The provider agency uses a form that has not been approved by DHS. DHS applies the error to the total number of units reimbursed while using something other than CLASS documentation of services delivered form or an approved facsimile.

(M)

DHS reimburses the provider agency for nursing, therapies, psychological, habilitation, out-of-home respite, in-home respite, adaptive aids/vehicle modifications or home modifications but a valid authorization individual service plan (ISP) form, pages 1-2 and all pertinent amendments signed by the case manager, is missing for the period reimbursed to the agency. DHS applies the error to the total number of units of nursing, therapies, habilitation, etc. claimed and not covered by an valid ISP.

(N)

DHS reimburses the provider agency for nursing services, but CLASS documentation of services delivered form lists "supervisory visit" in the comments section, without specifying that it is a nursing visit to supervise the delivery of delegated tasks, and there is no other documentation available that the nurse provided nursing services during the visit.

(O)

The direct services agency (DSA) begins home modification procurement without using the bid specifications and materials list as approved by the Interdisciplinary Team.

(2)

The following items are administrative errors resulting in recoupment of the entire requisition fee. The recoupment amount represents the administrative cost of the requisition fee.

(A)

There is no documentation of services delivered form, but there is a receipt for the purchase of adaptive aids/vehicle modifications or the completion of the minor home modification.

(B)

Bids were required for the purchase of an adaptive aid/vehicle modification or the completion of a minor home modification and bids were not obtained.

(C)

DHS reimburses the provider for the purchase of medical supplies, but there is no documentation available that price list/price quotes were obtained from three suppliers for the items for which the provider has been reimbursed, or the price lists/price quotes were obtained more than 12 months before the purchase.

(D)

DHS reimburses the provider for the purchase of adaptive aids, but there is no documentation available that price list/price quotes were obtained from three suppliers for the items for which the provider has been reimbursed, or there is no documentation available that the supplier selected on an annual basis to deliver the adaptive aids had the lowest prices for the main type of adaptive aids the agency has purchased.

(3)

Administrative errors for the case management agency (CMA) include, but are not limited to, the following:

(A)

The case management agency does not provide a completed ISP and an updated individual program plan within seven days from an interdisciplinary team meeting which results in the DSA providing services that at a later date are rejected because the CMA failed to submit the ISP for DHS authorization.

(B)

The DSA has the case information form on record which indicates that the DSA had requested corrected service updates be made to the participant's ISP prior to providing the service and the CMA provided authorization for that service on the case information form but failed to submit a corrected ISP for DHS authorization.

§45.403.Financial Errors.

(a)

A reduction of 100% of the paid unit rate is the financial error exception. This exception is applied to the unit(s) of service on the documentation reviewed in the Community Living Assistance and Support Services (CLASS) program. This exception is not extrapolated.

(b)

Financial errors include, but are not limited to, the following:

(1)

The Texas Department of Human Services (DHS) reimburses the provider agency for services, but the CLASS documentation of services delivered form, or approved facsimile, is missing for the period for which services are reimbursed. DHS applies the error to the total number of units/dollars reimbursed for the pay period.

(2)

The attendant, nurse, therapist, or other professional leaves the entire record of time section blank. DHS applies the error to the total number of units reimbursed for the pay period.

(3)

DHS reimburses the provider agency for hours that exceed the authorization given by DHS.

(A)

For habilitation services, the maximum that may be reimbursed for a month is the monthly amount authorized on the CLASS Individual Service Plan/Individual Program Plan (ISP/IPP) plus any hours not used due to participant stay while in a hospital or in a rehabilitation hospital.

(B)

For nursing services, the maximum that may be reimbursed is the number of hours listed in the ISP form, item 16.

(C)

DHS applies the error to the total number of units reimbursed in excess of the units authorized by DHS, unless purchased following emergency procedures.

(4)

DHS reimburses the provider agency for any waiver service that is not identified on the participant's ISP form, unless purchased following emergency procedures. DHS applies the error to the entire amount reimbursed for such services.

(5)

DHS reimburses the provider agency for hours that exceed the total number of hours recorded on the documentation of services delivered form or approved facsimile. DHS applies the error to the total number of units reimbursed in excess of the units recorded on the timesheet. If the sum of the daily total of hours does not equal what is written in the monthly total blank, the lesser of the two totals is used to calculate the total number of hours subject to the error.

(6)

The provider makes a claim for nursing, physical therapy, occupational therapy, or speech pathology services, but a valid physician's order is missing. DHS applies the error to the total number of units claimed and not covered by a valid order.

(7)

DHS reimburses the provider agency for a claim for service, other than the initial administrative fee, delivered prior to the eligibility effective date on the ISP form. DHS applies the error to the total number of units reimbursed for such services.

(8)

DHS reimburses the provider agency for any hours that consisted of non-billable time and activities as identified in §45.333 of this title (relating to Non-Billable Time and Activities). DHS applies the error to the total number of units reimbursed for such services.

(9)

DHS reimburses the provider agency for more than fours hours of nursing used to decide whether to delegate to the direct services agency attendant. DHS applies the error to the total number of units reimbursed for such services.

(10)

DHS reimburses the provider agency for more than 10 days during the participant's ISP year for nursing services being performed by a nurse to prevent service breaks caused by the attendant not being available to provide delegated nursing tasks. DHS applies the error to the total number of units reimbursed in excess of the 10 day maximum for such services.

(11)

DHS reimburses the provider agency for an amount in excess of the amount documented on the receipt for adaptive aids/vehicle modifications or minor home modifications. DHS applies the error to the total number of dollars reimbursed in excess of the amount on the receipt, plus the appropriate dollar amount of the requisition fee, if applicable.

(12)

There is no documentation for the completion of purchase and there is no receipt for the purchase of adaptive aids/vehicle modifications or for the completion of minor home modifications for which the provider has been reimbursed. DHS applies the error to the total number of dollars reimbursed for adaptive aids/vehicle modifications or minor home modifications in question, including the requisition fee.

(13)

DHS reimburses the provider agency for any waiver service that is not authorized on the participant's ISP form, unless the service was provided as a result of an emergency and is supported by backup documentation supplied within seven days from the date the emergency was determined.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on January 26, 1998.

TRD-9801127

Glenn Scott

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: March 9, 1998

For further information, please call: (512) 438-3765


Chapter 48. Community Care for Aged and Disabled

1915(c) Medicaid Home and Community-based Waiver Services for Aged and Disabled Adults Who Meet Criteria for Alternative to Nursing Facility Care

40 TAC §§48.6003, 48.6041, 48.6042, 48.6044, 48.6046, 48.6048, 48.6050, 48.6052, 48.6054, 48.6056, 48.6058, 48.6060, 48.6062, 48.6064, 48.6066, 48.6068, 48.6070, 48.6072, 48.6074, 48.6076, 48.6078, 48.6080, 48.6082, 48.6084, 48.6086, 48.6088, 48.6090

The Texas Department of Human Services (DHS) proposes an amendment to §48.6003, concerning client eligibility criteria; and new §48.6041, concerning termination of services to current participants; §48.6042, concerning automatic suspension of Community Based Alternatives (CBA) services; §48.6044, concerning suspension of CBA services for cause; §48.6046, concerning sanctions related to service suspension; §48.6048, concerning notification of suspension; §48.6050, concerning service array for Home and Community Support Services; §48.6052, concerning cost-effective purchases of adaptive aids; §48.6054, concerning time frames for adaptive aids costing less than $500; §48.6056, concerning time frames for adaptive aids costing $500 or more; §48.6058, concerning cost-effective purchases of medical supplies; §48.6060, concerning time frames for medical supplies; §48.6062, concerning time frames for emergency purchases of medical supplies; §48.6064, concerning medical supplies on hand; §48.6066, concerning freight charges for medical supplies and adaptive aids; §48.6068, concerning cost-effective purchases of minor home modifications; §48.6070, concerning time frames for minor home modifications costing $1000 or more; §48.6072, concerning time frames for minor home modifications costing less than $1000; §48.6074, concerning landlord approval for minor home modifications; §48.6076, concerning accountability for minor home modifications; §48.6078, concerning billable units; §48.6080, concerning non- billable time and activities; §48.6082, concerning mutually exclusive services; §48.6084, concerning service claim limits; §48.6086, concerning claims and service delivery records; §48.6088, concerning monetary exceptions; and §48.6090, concerning fiscal monitoring; in its Community Care for Aged and Disabled chapter. The purpose of the amendment and new sections is to clarify when services to a participant must be suspended and when services must be terminated. The process for suspension or termination of services is defined. Also defined are the documentation requirements for provider payment, specifying what constitutes administrative and financial errors and establishing provider sanctions for errors identified. A sanction of 100% of the paid unit rate is applied to financial errors identified on the documentation reviewed, eliminating payment for services not authorized or not delivered according to program rules. A sanction of 12% of the unit rate is applied to the paid units with administrative errors on the documentation reviewed reducing payment for administrative services not performed. Administrative and financial errors are not extended beyond the documentation reviewed. Compliance with these rules improves fiscal accountability.

Eric M. Bost, commissioner, has determined that for the first five- year period the sections are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the sections.

Mr. Bost also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of enforcing the sections will be to initiate a sanction of 12% for administrative errors, which is the percentage of the reimbursement paid by the department that is attributed to administration by the provider, and initiate a sanction of 100% for financial errors, eliminating payment for services that are not authorized and reducing the cost of services that are not delivered according to program rules and policies as established in current rules. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the proposed sections.

Questions about the content of this proposal may be directed to Gerardo Cantu at (512) 438-3693 in DHS's Community Care Section. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-010, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

The amendment and new sections are proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The amendment and new sections implement the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

§48.6003.Client Eligibility Criteria.

(a)

To be determined eligible by the Texas Department of Human Services (DHS) for the 1915(c) Medicaid waiver program provided as an alternative to care in a nursing facility, an applicant must:

(1)-(2)

(No change.)

[ (3)

meet the requirements for Preadmission Screening and Annual Resident Review (PASARR) and be determined appropriate for nursing facility care; ]

(3)

[ (4) ] choose home and community-based waiver services as an alternative to nursing facility placement based on an informed choice with approval conditional on feasible alternatives available under the waiver in accordance with 42 Code of Federal Regulations, §441.302(d)(1);

(4)

[ (5) ] have an individual plan of care for waiver services as specified in §48.6006 of this title (relating to Individual Plan of Care for Waiver Services) whose cost does not exceed 95% of the individual's actual Texas Index for Level of Effort payment rate;

(5)

[ (6) ] meet the financial eligibility criteria for waiver services as specified in §48.6007 of this title (relating to Financial Eligibility Criteria); and

(6)

[ (7) ] have ongoing needs for waiver services whose projected costs, as indicated on the Individual Plan of Care, do not exceed the maximum service ceilings set for those services as listed in this paragraph:

(A)

Adaptive Aids and Medical Supplies service category cannot exceed $10,000 per individual per Individual Plan of Care year without approval by the waiver manager;

(B)

minor home modifications service category cannot exceed $7500 per individual without approval by the waiver manager;

(C)

respite care cannot exceed 30 days per individual per Individual Plan of Care year without approval by the waiver manager;

(7)

[ (8) ] receive waiver services within 30 days after waiver eligibility is established and

(8)

[ (9) ] reside either in his own home or in a licensed personal care facility or adult foster care home contracted with the Texas Department of Human Services to provide Community Based Alternatives (CBA) services. CBA services will not be delivered to residents of hospitals, nursing facilities, ICF-MR facilities, or unlicensed personal care facilities.

(9)

[ (10) ] meet two or more of the criteria for nursing home risk, as specified in the Resident Assessment Instrument-Home Care Assessment for Nursing Home Risk as revised in April 1996 and summarized as follows:

(A)

needs assistance with one or more of the activities of dressing, personal hygiene, eating, toilet use, or bathing;

(B)

has a functional decline in the past 90 days;

(C)

has a history of a fall two or more times in past 180 days;

(D)

has a neurological diagnosis of Alzheimer's, head trauma, multiple sclerosis, Parkinsonism, or dementia;

(E)

has a history of nursing facility placement within the last five years;

(F)

has multiple episodes of urine incontinence daily; and

(G)

goes out of one's residence one or fewer days a week.

(b)-(e)

(No change.)

§48.6041.Termination of Services to Current Participants.

(a)

The case manager must terminate Community Based Alternatives (CBA) services if one or more of the following circumstances occur.

(1)

The participant leaves the state for more than 90 days.

(2)

The participant dies.

(3)

The participant has resided in an institutional setting for longer than 120 days. An institution includes an acute care hospital, state hospital, rehabilitation hospital, state school, nursing home or intermediate care facility for persons with mental retardation or related conditions (ICF-MR/RC). DHS will retain authority to extend this time in extraordinary circumstances.

(4)

The participant requests that services end and the request is documented in writing.

(5)

The participant is not financially eligible for Medicaid benefits.

(6)

The participant does not meet the medical necessity (MN) criteria for nursing facility care.

(7)

The estimated cost of the CBA services necessary to adequately meet the needs of the participant exceeds his CBA cost ceiling.

(8)

Two providers of the same category have refused to serve the participant on the basis of a reasonable expectation that the participant's medical, nursing, and social needs cannot be met adequately in the participant's residence.

(9)

The participant\responsible party or court-appointed guardian refuses to sign the Individual Service Plan (ISP). A referral will be made to the County Judge to determine whether the court-appointed guardian is acting in the best interests of the CBA participant.

(10)

The participant refuses to comply with his ISP, including situations in which he refuses services and threatens his own health and safety.

(11)

The participant refuses to release relevant medical information necessary for the ISP.

(12)

The participant or someone in the participant's home deliberately threatens the health or safety of the service provider or the Texas Department of Human Services (DHS) staff.

(13)

The participant is incarcerated for more than 30 days.

(14)

The participant or someone in the participant's home has subjected the person providing services to sexual harassment.

(15)

The participant or someone in the participant's home has a substantiated pattern of discrimination against the service provider(s) on the basis of race, color, national origin, age, sex, disability, political beliefs, or religion that has not improved with appropriate intervention.

(16)

The participant or someone in the participant's home has a substantiated use of illegal drugs or has illegal drugs readily available within sight of the service provider.

(17)

The participant fails to pay his room and board expenses or co- payment in the adult foster care (AFC) or assisted living/residential care (AL/RC) setting.

(18)

Participant fails to pay his qualified income trust co-payment.

(b)

The case manager provides written notice to the participant of the effective date of termination and provides the participant with the written notice of the right to appeal.

(c)

If the participant appeals the denial within 12 days of notification, the case manager continues CBA services until notification of the decision by the DHS hearing officer. The case manager may not reduce services until the outcome of the appeal is known. Services do not continue during the appeal process when the reason for denial is that the participant threatens the health and safety of himself or others.

§48.6042.Automatic Suspension of Community Based Alternatives (CBA) Services.

The Home and Community Support Services (HCSS) agency must automatically suspend CBA services to a participant when:

(1)

the participant is admitted to an institution. An institution includes acute care hospital, state hospital, rehabilitation hospital, state school, or a nursing home;

(2)

the participant temporarily leaves the contracted service area for vacations or other personal business unless special arrangements have been authorized by the HCSS agency;

(3)

the participant dies;

(4)

the participant requests in writing that services end and the request is documented in writing;

(5)

the participant's physician refuses to sign orders or rescinds existing orders for the service;

(6)

the Texas Department of Human Services (DHS) denies the participant's eligibility;

(7)

the participant or someone in the participant's home deliberately threatens the health or safety of the service provider;

(8)

DHS terminates the contract with the provider; or

(9)

the participant is incarcerated.

§48.6044.Suspension of Community Based Alternatives Services for Cause.

The Home and Community Support Services (HCSS) agency may suspend services if one or more of the following occur:

(1)

the participant or someone in the participant's home sexually harasses the service provider(s);

(2)

the participant or someone in the participant's home has a pattern of discrimination against the service provider(s) on the basis of race, color, national origin, age, sex, disability, political beliefs, or religion that has not improved with appropriate intervention; or

(3)

the participant or someone in the participant's home openly uses illegal drugs or has illegal drugs readily available within sight of the service provider.

§48.6046.Sanctions Related to Service Suspension.

The Texas Department of Human Services (DHS) may sanction up to and including contract termination any provider agency that:

(1)

suspends services to a participant for a reason other than what is allowed in §48.6042 of this title (relating to Automatic Suspension of Community Based Alternatives Services) and §48.6044 of this title (relating to Suspension of Community Based Alternatives for Cause); or

(2)

uses the information cited in §48.6042 of this title (relating to Automatic Suspension of Community Based Alternatives Services) and §48.6044 of this title (relating to Suspension of Community Based Alternatives for Cause) to suspend a participant when the provider agency knew or should have known that the cited information did not apply to the participant.

§48.6048.Notification of Suspension.

No later than the first Texas Department of Human Services work day after services are suspended, the Home and Community Support Services (HCSS) agency must verbally notify the case manager or staff in the case manager's office about the reason the HCSS agency suspended services. Written notification on the case information form must be sent to the case manager within seven calendar days of service suspension.

§48.6050.Service Array for Home and Community Support Services (HCSS).

HCSS agencies must provide the array of home and community support services identified in paragraphs (1)-(9) of this section in accordance with the individual service plan through their own employees, subcontractors, or personal service agreements with qualified individuals. Services include:

(1)

personal assistance services;

(2)

nursing services;

(3)

physical therapy;

(4)

occupational therapy;

(5)

speech pathology services;

(6)

adaptive aids;

(7)

medical supplies;

(8)

minor home modifications; and

(9)

respite care (in-home).

§48.6052.Cost-Effective Purchases of Adaptive Aids.

(a)

For any single adaptive aid expenditure costing less than $500, the Home and Community Support Services (HCSS) agency must:

(1)

determine and document the needs and preferences of the participant for the adaptive aid;

(2)

document the necessity for the adaptive aid;

(3)

consider renting the adaptive aid on a short-term basis if the participant's needs or desires cannot be accurately determined at the time of the assessment;

(4)

obtain comparative price quotes or use a price list to document prices of the adaptive aid from a minimum of three suppliers or annually select a supplier based on the lowest prices from the quotes/price list for the main types of adaptive aids that the agency has been purchasing;

(5)

document the justification of the selection including cost, delivery time of item, record of quality services, access to loaners during repairs, repair history, and warranties. For those suppliers selected, document in the vendor records the names of the suppliers from whom all quotes/price lists were obtained, the amount of the quotes/price lists, the items for which the quotes/price lists were requested, and the dates the quotes/price lists were obtained; and

(6)

have a nurse, therapist, or other appropriate professional conduct a home visit within 14 Texas Department of Human Services work days of delivery to verify that the adaptive aid meets the needs of the participant, that orientation was provided to the participant in the use of the adaptive aid, and to document completion of purchase and satisfaction of the participant on the documentation of completion of purchase form.

(b)

For any single adaptive aid expenditure costing $500 or more, in addition to complying with the requirements listed in subsection (a)(1)-(6) of this section, the HCSS agency must:

(1)

obtain written specifications for the adaptive aid from a licensed occupational therapist, physical therapist, speech pathologist, or other appropriate professional specializing in assessments for assistive technology or adaptive aids;

(2)

obtain a minimum of three written bids if not using price lists or price quotes as identified under subsection (a)(5)-(6) of this section, and document the justification of the selection including cost, delivery time of item, record of quality services, access to loaners during repairs, repair history, and warranties; and

(3)

document the justification when not accepting the lowest bid, including delivery time of item, record of quality services, access to loaners during repairs, repair history, and warranties.

§48.6054.Time Frames for Adaptive Aids Costing Less Than $500.

(a)

The Home and Community Support Services agency must purchase and ensure delivery of any adaptive aid within 14 Texas Department of Human Services (DHS) work days of being authorized to purchase the adaptive aid, counting from either the effective date of the individual service plan form or the date the form is received, whichever is later.

(b)

If the agency cannot ensure delivery of an adaptive aid within 14 DHS work days of receipt of DHS's authorization, before the 14th day, the agency must submit to the case manager the case information form, containing an explanation why the adaptive aid cannot be delivered within the required time frame and a new proposed date for the delivery.

§48.6056.Time Frames for Adaptive Aids Costing $500 or More.

(a)

The Home and Community Support Services agency must purchase and ensure delivery of any adaptive aid within 30 Texas Department of Human Services (DHS) work days of being authorized to purchase the adaptive aid, counting from either the effective date of the individual service plan form or the date the form is received, whichever is later.

(b)

If the agency cannot ensure delivery of an adaptive aid within 30 DHS work days of receipt of DHS's authorization, before the 30th day, the agency must submit to the case manager the case information form, containing an explanation why the adaptive aid cannot be delivered within the required time frame and including a new proposed date for the delivery.

§48.6058.Cost-Effective Purchases of Medical Supplies.

The Home and Community Support Services agency must:

(1)

prior to the selection of medical supplies, obtain comparative price quotes or use a price list to document prices of the medical supplies from a minimum of three suppliers; or

(2)

at least annually select supplies based on the lowest prices from the quotes/price list for the main types of supplies that the agency has been purchasing, and document the justification of the selection, including cost, delivery time of item, and record of quality services; and

(3)

document the basis for selection and for those selected, document in the vendor records the names of the suppliers from whom all quotes/price lists were obtained, the amount of the quotes/price lists, the items for which the quotes/price lists were requested, and the dates the quotes/price lists were obtained.

§48.6060.Time Frames for Medical Supplies.

(a)

The Home and Community Support Services (HCSS) agency is responsible for assuring the purchase and delivery of any authorized medical supply within five Texas Department of Human Services (DHS) work days of the waiver service initiation date.

(b)

On existing cases, the HCSS agency must deliver medical supplies within five DHS work days of being authorized to purchase the supplies, counting from the effective date of the individual service plan form or the date the form is received, whichever is later.

(c)

If the HCSS agency cannot ensure delivery of a medical supply due to unusual or special supply needs or availability within five DHS work days of receipt of DHS's authorization, the HCSS agency must submit the case information form to the case manager before the fifth day, containing an explanation why the medical supply cannot be delivered within the required time frame and a new proposed date for the delivery.

§48.6062.Time Frames for Emergency Purchases of Medical Supplies.

If the case manager or the Home and Community Support Services (HCSS) agency identifies a need for the emergency purchase and delivery of a medical supply, the HCSS agency must deliver the item within two Texas Department of Human Services work days of identifying the need for the medical supply.

§48.6064.Medical Supplies on Hand.

At least twice a year, the Home and Community Support Services agency must verify the quantity of the medical supplies that the participant has on hand, and, if necessary, adjust the service plan or modify the delivery schedule for the medical supplies. The results of this verification must be documented in the case conference notes.

§48.6066.Freight Charges for Medical Supplies and Adaptive Aids.

The Home and Community Support Services agency must assure that, if medical supplies or adaptive aids are delivered to the participant by means of any commercial carrier, such as United Parcel Services or United States Postal Service, the most cost effective carrier is used. Overnight delivery should not be used unless it is an emergency purchase that cannot be purchased locally and delivered by the next day after determining the need.

§48.6068.Cost-Effective Purchases of Minor Home Modifications.

The Home and Community Support Services (HCSS) agency must:

(1)

determine and document the needs and preferences of the participant for the minor home modification;

(2)

document the necessity for the minor home modification;

(3)

obtain written specifications for any project expenditure costing $1000 or more which will be used to procure bids and inspect the completed job;

(4)

obtain a minimum of three written bids based on the written specifications for any project expenditure costing $1000 or more;

(5)

select a bidder to provide the modification and document the justification when not selecting lowest bid for the selection, including cost, completion time of modification, record of quality service, timely response to repair requests, and warranties; and

(6)

inspect the minor home modification for completion, compliance with the written specifications, if applicable, and quality of workmanship within seven Texas Department of Human Services (DHS) work days of the work being completed. The inspection requirements are as follows:

(A)

The HCSS provider must ensure that a qualified person inspects completed work to ensure all work was done according to written specifications, if applicable, and the Texas Accessibility Standards.

(B)

The inspector cannot be the attendant.

(C)

Once the inspection is concluded and the modification is completed, the HCSS provider must send a copy of the Community Based Alternatives documentation of completion of purchase form to the case manager within seven DHS work days after the completion of the modification.

§48.6070.Time Frames for Minor Home Modifications Costing $1000 or More.

(a)

The Home and Community Support Services agency is responsible for assuring the completion of all minor home modifications within 60 Texas Department of Human Services (DHS) work days of being authorized to do the minor home modification, counting from either the effective date of the individual service plan form or the date the form is received, whichever is later.

(b)

If the modification cannot be completed within 60 DHS work days of being authorized to do the minor home modification, the agency must submit the case information form to the case manager prior to the 60th day, explaining why the modification cannot be completed on time and including a new projected date of completion for the modification.

§48.6072.Time Frames for Minor Home Modifications Costing Less Than $1000.

(a)

The Home and Community Support Services agency is responsible for assuring the completion of all minor home modifications within 30 Texas Department of Human Services (DHS) work days of being authorized to do the minor home modification, counting from either the effective date of the individual service plan form or the date the form is received, whichever is later.

(b)

If the modification cannot be completed within 30 DHS work days of being authorized to do the minor home modification, the agency must mail the case information form to the case manager prior to the 30th date, explaining why the modification cannot be completed on time and including a new projected date of completion for the modification.

§48.6074.Landlord Approval for Minor Home Modifications.

Prior to beginning the home modifications, the Home and Community Support Services (HCSS) agency must obtain written approval from the owner of the building for the proposed modifications if the rental agreement does not provide such approval. Additionally, the HCSS agency must obtain any applicable building permits prior to starting the home modifications.

§48.6076.Accountability for Minor Home Modifications.

If a minor home modifications require repair or replacement within one year of completion, the Home and Community Support Services agency must repair or replace the minor home modification without billing the Texas Department of Human Services or the participant, except when

(1)

the finished modification met appropriate specifications and bid requirements agreed upon before the job was started; or

(2)

the repair or replacement is required due to circumstances beyond the control of the participant or participant's family members, or due to abuse caused by the participant or family members.

§48.6078.Billable Units.

The following activities may be billed as Community Based Alternatives (CBA) services by Home and Community Support Services agencies:

(1)

Nursing services:

(A)

direct participant contact;

(B)

participation on the interdisciplinary team (IDT);

(C)

time spent in delegating, training, and supervising personal care attendants, Adult Foster Care providers, and provider substitutes in the delivery of nursing tasks that have been delegated;

(D)

time spent in providing nursing tasks that had been delegated to an attendant in order to prevent a service break, if no attendant can be found;

(E)

time spent in training family members, neighbors, and other informal support providers to provide needed nursing or personal care tasks; and

(F)

time spent in performing the annual reassessment or Texas Index for Level of Effort resets which includes actual participant contact and documentation of assessment forms and care plan.

(2)

Specialized therapy services (occupational therapy, physical therapy, and speech pathology):

(A)

direct participant contact; and

(B)

participation on the IDT.

(3)

Personal assistance services:

(A)

direct participant contact to provide personal care and nursing tasks that have been delegated; and

(B)

participation on the IDT.

(4)

Billable items for medical supplies include the invoice cost, including freight charges and sales tax, of the medical supply and the requisition fee.

(5)

Billable items for minor home modifications include the invoice cost of labor, materials, sales tax, and the requisition fee.

(6)

Billable items for adaptive aids include the invoice cost of the item, including freight charges and sales tax, and the requisition fee.

(7)

In-Home Respite Care - relief of the unpaid primary caregiver.

§48.6080.Non-Billable Time and Activities.

The following activities are not considered billable activities under the Community Based Alternatives (CBA) program for Home and Community Support Services agencies:

(1)

supervision of personal care attendants performing personal assistance tasks, unless the attendant is delivering nursing tasks delegated by a registered nurse;

(2)

phone calls, letters, or meetings with Texas Department of Human Services (DHS) or community resources;

(3)

administrative meetings or staff meetings;

(4)

in-service training, continuing education, or conferences;

(5)

employee conferences or evaluations;

(6)

filing claims for services;

(7)

traveling to and from the participant's home;

(8)

processing paperwork or completing records or reports, except for the annual reassessment;

(9)

home modifications, medical supplies, or adaptive aids that are not listed in the CBA Provider Manual as covered items nor approved by authorized DHS staff;

(10)

collateral contact when that contact is between agency employees and individuals providing services to participants under personal service agreements or subcontracts with the CBA agency;

(11)

billing for services that are considered to be mutually exclusive, as identified in §48.6082 of this title (relating to Mutually Exclusive Services);

§48.6082.Mutually Exclusive Services.

The following waiver services are considered to be mutually exclusive and are not allowed under the waiver:

(1)

A participant receiving In-Home Respite Care may not receive personal assistance services for the same period of time.

(2)

A participant residing in a personal care facility, Type B, may not receive minor home modifications.

(3)

A participant residing in a personal care facility or an Adult Foster Care home may not receive personal assistance services.

(4)

A participant cannot receive any Home and Community Support Services reimbursed through the Community Based Alternatives program from two provider agencies on the same date.

§48.6084.Service Claim Limits.

(a)

A maximum of four hours may be billed under nursing services by the registered nurse to decide whether or not to delegate a nursing task to an adult foster care provider.

(b)

In order to avoid service breaks, the Home and Community Support Services agency may bill for authorized personal assistance services hours performed by a licensed nurse, for a maximum period of 10 days during the participant's individual service plan effective period.

(1)

The hours performed by the nurse may be billed at the nursing rate, only if there are no attendants available to perform the needed delegated nursing tasks and only licensed nurses can be recruited.

(2)

The documentation must include all efforts the provider agency made in order to find an attendant to deliver delegated nursing tasks in order to prevent a break in service.

(c)

Components of minor home modifications cannot be billed without an invoice or in more than three billings.

§48.6086.Claims and Service Delivery Records.

The Community Based Alternatives (CBA) Home and Community Support Services (HCSS) agency provider is liable for monetary exceptions if the monthly claims do not correspond with the provider's service authorization and service delivery records. The provider must maintain the following records:

(1)

notification of Community Based Alternatives services form;

(2)

individual service plan, pages 1-3 and attachments B-E form;

(3)

notification of ineligibility form;

(4)

client needs assessment questionnaire and task/hour guide and addendum for personal assistance services form;

(5)

CBA HCSS purchased services delivery report form;

(6)

CBA documentation of services delivered form, or a facsimile previously approved by the waiver manager;

(7)

bids for minor home modifications costing $1000 or more;

(8)

bids for any single expenditure for adaptive aids costing $500 or more, comparative price quotes or a price list;

(9)

annual comparative price quotes/lists for the purchase of medical supplies;

(10)

annual comparative price quotes/lists for the purchase of adaptive aids;

(11)

receipts from the contractor for minor home modifications completed, documenting the date of completion and the cost of the modification;

(12)

CBA documentation of completion of purchase form;

(13)

any applicable building permits;

(14)

CBA specifications for minor home modifications form;

(15)

documented justification for not accepting the lowest bids or quotes for adaptive aids, medical supplies, or minor home modifications, where applicable;

(16)

if using price lists/price quotes, documentation of the basis of the annual selection of a supplier; and

(17)

written approval from the homeowner for modifications to be made.

§48.6088.Monetary Exceptions.

(a)

Providers of Home and Community Support Services (HCSS) services must document on the documentation of service delivery form, or an approved facsimile, that services reimbursed on an hourly basis are provided as authorized on the notification of Community Based Alternatives services form and identified on the individual service plan, including:

(1)

type of service delivered;

(2)

units of service delivered;

(3)

dates of service delivery; and

(4)

name of the individual providing waiver services.

(b)

If documentation does not support the monthly claims, the HCSS agency may be liable for monetary exceptions.

(c)

The HCSS agency must designate a timekeeper to verify that the hours recorded on the time sheet were worked and that the tasks assigned were completed. The timekeeper may be a registered nurse supervisor.

(d)

The employee must enter the daily total time and monthly total hours. An employee who is unable to complete and sign the time sheet may designate another person to complete and sign the time sheet. The HCSS agency must document in writing the reasons the employee is unable to complete and sign the time sheet and must document in writing who is authorized to make these entries. The documentation may be a written statement that includes the following:

(1)

the employee's name;

(2)

a brief summary of what portion of the time sheet the employee is unable to complete;

(3)

the name and relationship of the person who has been designated to complete the form for the employee; and

(4)

the timekeeper's signature and date. The timekeeper may add the monthly total of time with no exception taken, as long as the employee completes the daily total time.

§48.6090.Fiscal Monitoring.

(a)

Administrative errors. A recoupment of 12% of the paid unit rate is the administrative error exception for services billed on an hourly basis. It represents the administrative portion of the rate. Administrative errors are applied to the documentation reviewed and are not extrapolated. Administrative errors include, but are not limited to, the items in paragraphs (1)-(2) of this subsection:

(1)

administrative errors on the documentation of services delivered form or the prior approved facsimile:

(A)

The provider agency leaves the month and year of service blank in item 2, section A. The Texas Department of Human Services (DHS) applies the error to the total number of units documented on the time sheet.

(B)

The timekeeper fails to enter a date of signature to certify the total number of hours the attendant, nurse, or therapist worked. DHS applies the error to the total number of units documented on the time sheet.

(C)

The timekeeper corrects the date of signature, but fails to initial the correction. DHS applies the error to the number of units reimbursed after the earliest signature date.

(D)

The timekeeper enters an illegible date of signature or makes an illegible correction to the date. DHS applies the error to the total number of units documented on the time sheet.

(E)

The timekeeper enters a date of signature that is before the date of the last day services are delivered. DHS applies the error to the total number of units reimbursed after the signature date.

(F)

The timekeeper fails to sign the time sheet. DHS applies the error to the total number of units documented on the time sheet.

(G)

The timekeeper uses a signature stamp, but fails to initial the stamped signature. DHS applies the error to the total number of units documented on the time sheet.

(H)

The attendant, nurse, therapist, and/or timekeeper uses liquid paper/correction fluid to correct an entry in the record of time, signature, or date portion of the time sheet. DHS applies the error to the total number of units documented on the time sheet. If the liquid paper/correction fluid is used only on a daily entry in the record of time, DHS applies the error only to the total number of units reimbursed for that day.

(I)

The attendant, nurse, therapist, and/or timekeeper makes an illegible entry in or an illegible correction to any portion of the record of time column. DHS applies the error to the total number of units reimbursed for the days in which entries are illegible.

(J)

The attendant fails to initial an increase in the daily time or the monthly total of hours for the pay period. DHS applies the error to the number of units reimbursed in excess of the original entry.

(K)

The attendant, nurse, therapist, or other agency representative fails to sign the documentation of services delivered form or approved facsimile. DHS applies the error to the total number of units documented on the time sheet.

(L)

The provider agency uses a form that has not been approved by DHS. DHS applies the error to the total number of units reimbursed while using something other than documentation of services delivered form or an approved facsimile.

(M)

DHS reimburses the provider agency for nursing, therapies, personal assistance services, or in-home respite, but a valid individual service plan, pages 1-3 and all pertinent attachments, and client needs assessment questionnaire and task/hour guide and addendum for personal assistance services form, signed by the case manager, is missing for the period reimbursed by the agency. DHS applies the error to the total number of units of nursing, therapies, personal assistance services, or in-home respite, claimed and not covered by a valid individual service plan.

(N)

DHS reimburses the provider agency for nursing services, but the documentation of services form lists "supervisory visit" in the comments section without specifying that it is a nursing visit to supervise the delivery of delegated tasks, and there is no other documentation available that the nurse provided nursing services during the visit.

(2)

The following items are administrative errors resulting in recoupment of the entire requisition fee. The recoupment amount represents the administrative cost of the requisition fee:

(A)

There is no Community Based Alternatives documentation of completion of purchase form, but there is a receipt for the purchase of adaptive aids, medical supplies, or for the completion of the minor home modification.

(B)

Bids were required for the purchase of an adaptive aid or the completion of a minor home modification and bids were not obtained.

(C)

DHS reimburses the provider for the purchase of medical supplies, but there is no documentation available that price list/price quotes were obtained from three suppliers for the items for which the provider has been reimbursed or the price list/price quotes were obtained more than 12 months before the purchase.

(D)

DHS reimburses the provider for the purchase of adaptive aids, but there is no documentation available that price list/price quotes were obtained from three suppliers for the items for which the provider has been reimbursed or there is no documentation available that the supplier selected on an annual basis to deliver the adaptive aids had the lowest prices for the main type of adaptive aids the agency has purchased.

(b)

Financial errors. A reduction of 100% of the paid unit rate is the financial error exception. This exception is applied to the units of service on the documentation reviewed. This exception is not extrapolated. Financial errors include, but are not limited to, the following:

(1)

DHS reimburses the provider agency for services, but the documentation of services delivered form, or approved facsimile, is missing for the period for which services are reimbursed. DHS applies the error to the total number of units documented on the time sheet.

(2)

The attendant, nurse, or therapist leaves the entire record of time section blank. DHS applies the error to the total number of units documented on the time sheet.

(3)

DHS reimburses the provider agency for hours that exceed the authorization given by DHS. DHS applies the error to the total number of units reimbursed in excess of the units authorized by DHS, unless purchased following emergency procedures.

(A)

For personal assistance services, the maximum that may be reimbursed for a month is the weekly total of hours listed under "adjusted weekly hours" on the addendum to the personal assistance services form, multiplied by 4.50 plus prior authorized hours not used due to participant stay while in a hospital or in a rehabilitation hospital.

(B)

For nursing services, the maximum that may be reimbursed is the number of hours listed under "direct nursing hours" on the individual service plan/nursing service plan.

(4)

DHS reimburses the provider agency for any waiver service that is not identified on the participant's individual service plan, attachments B-E, and client needs assessment questionnaire and task/hour guide and addendum for personal assistance services form, unless the service was provided as a result of an emergency and is supported by backup documentation supplied within seven DHS work days from the date the emergency was determined. DHS applies the error to the entire amount reimbursed for such services.

(5)

DHS reimburses the provider agency for hours that exceed the total number of hours recorded on the documentation of services delivered form or approved facsimile. DHS applies the error to the total number of units reimbursed in excess of the units recorded on the time sheet. If the sum of the daily total of hours does not equal what is written in the monthly total blank, the lesser of the two totals is used to calculate the total number of hours subject to the error.

(6)

The provider makes a claim for nursing, physical therapy, occupational therapy, or speech pathology services, but a valid physician's order is missing. DHS applies the error to the total number of units claimed and not covered by a valid order.

(7)

DHS reimburses the provider agency for a claim for service, other than a pre-enrollment home health assessment, delivered prior to the eligibility effective date on the notification of Community Based Alternatives services form. DHS applies the error to the total number of units reimbursed for such services that were delivered before the effective date on the form.

(8)

DHS reimburses the provider agency for any hours that consisted of non-billable time and activities as identified in the rule §48.6080 of this title (relating to Non-Billable Time and Activities). DHS applies the error to the total number of units reimbursed for such services.

(9)

DHS reimburses the provider agency for more than four hours of nursing used to decide whether to delegate to an Adult Foster Care provider. DHS applies the error to the total number of units reimbursed for such services.

(10)

DHS reimburses the provider agency for more than 10 days during the participant's individual service plan year for nursing services being performed by a nurse to prevent service breaks caused by the attendant not being available to provide delegated nursing tasks. DHS applies the error to the total number of units reimbursed in excess of the ten-day maximum for such services.

(11)

DHS reimburses the provider agency for an amount in excess of the amount documented on the receipt for adaptive aids, medical supplies, or minor home modifications. DHS applies the error to the total number of dollars reimbursed in excess of the amount on the receipt, plus the appropriate dollar amount of the requisition fee, if applicable.

(12)

There is no receipt for the purchase of adaptive aids or medical supplies, or for the completion of minor home modifications for which the provider has been reimbursed. DHS applies the error to the total dollar amount reimbursed for the medical supplies, adaptive aids, or minor home modifications in question, including the requisition fee.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on January 26, 1998.

TRD-9801120

Glenn Scott

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: March 9, 1998

For further information, please call: (512) 438-3765


Chapter 79. Legal Services

The Texas Department of Human Services (DHS) proposes the repeal of §§79.1001-79.1007 and §§79.1601-79.1614, concerning informal hearings, request for hearing, setting for hearing, conduct of hearing, decision, rehearing, administrative appeal, definitions, right to a hearing, special requirements, notice of adverse action, request for a hearing, effective dates of adverse actions, administrative law judge, hearing guidelines, withdrawal of hearing request and informal disposition, conduct of hearings - general requirements, prehearing procedure, evidence and depositions, deliberation, and decisions; and proposes new §§79.1601-79.1613, concerning definitions, computation of time, notice of adverse action, request for a hearing, notice of hearing, venue, representation of parties, prehearing procedure, discovery and depositions, informal disposition of appeal, conduct of hearings, final decisions and orders, and motions for rehearing, in its Legal Services chapter. DHS is also repealing Subchapter K, Informal Hearings. The purpose of the repeals and new sections is to organize and simplify the formal hearing rules that are used when appearing before and participating in a hearing before an administrative law judge. In addition, the new sections promulgate hearing rules are required by 1997 legislation, including Senate Bills 30, 84, and 637.

Eric M. Bost, commissioner, has determined that for the first five-year period the proposed sections will be in effect there will be fiscal implications as a result of enforcing or administering the sections. The effect on state government for the first five-year period the sections will be in effect is an estimated additional cost of $58,630 for fiscal year 1998; $117,812 for fiscal year 1999; $117,812 for fiscal year 2000; $117,812 for fiscal year 2001; and $117,812 for fiscal year 2002. There will also be an increase in revenue of $99,975 for fiscal year 1998; $399,900 for fiscal year 1999; $399,900 for fiscal year 2000; $399,900 for fiscal year 2001; and $399,900 for fiscal year 2002. There will be no fiscal implications for local government.

Mr. Bost also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of enforcing the sections will be that a party to a hearing will be able to consult one set of hearing rules to determine how to proceed before an administrative judge in contested cases involving adverse actions by DHS. Also, Senate Bill 30 implementation costs will be offset by increased recoveries of benefit overissuances. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the proposed sections.

Questions about the content of the proposal may be directed to Carrie McLarty at (512) 438-4872 in DHS's Hearings Department. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-117, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

Subchapter K. Informal Hearings

40 TAC §§79.1001-79.1007

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Department of Human Services or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeals are proposed under the Human Resources Code, Title 2, Chapter 22, which provides the department with the authority to administer public assistance programs.

The repeals implement the Human Resources Code, §§22.001- 22.030.

§79.1001.Informal Hearings.

§79.1002.Request for Hearing.

§79.1003.Setting for Hearing.

§79.1004.Conduct of Hearing.

§79.1005.Decision.

§79.1006.Rehearing.

§79.1007.Administrative Appeal.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on January 23, 1998.

TRD-9801066

Glenn Scott

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: March 9, 1998

For further information, please call: (512) 438-3765


Subchapter Q. Formal Hearings

40 TAC §§79.1601-79.1614

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Department of Human Services or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeals are proposed under the Human Resources Code, Title 2, Chapter 22, which provides the department with the authority to administer public assistance programs.

The repeals implement the Human Resources Code, §§22.001- 22.030.

§79.1601.Definitions.

§79.1602.Right to a Hearing.

§79.1603.Special Requirements.

§79.1604.Notice of Adverse Action.

§79.1605.Request for a Hearing.

§79.1606.Effective Dates of Adverse Actions.

§79.1607.Administrative Law Judge.

§79.1608.Hearing Guidelines.

§79.1609.Withdrawal of Hearing Request and Informal Disposition.

§79.1610.Conduct of Hearings - General Requirements.

§79.1611.Prehearing Procedure.

§79.1612.Evidence and Depositions.

§79.1613.Deliberation.

§79.1614.Decisions.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on January 23, 1998.

TRD-9801067

Glenn Scott

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: March 9, 1998

For further information, please call: (512) 438-3765


40 TAC §§79.1601-79.1613

The new sections are proposed under the Human Resources Code, Title 2, Chapter 22, which provides the department with the authority to administer public assistance programs.

The new sections implement the Human Resources Code, §§22.001- 22.030.

§79.1601.Definitions.

The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

(1)

Administrative law judge - The Texas Department of Human Services' (DHS) attorney appointed to preside over the hearing by the director of the Hearings Department.

(2)

Administrator - A nursing facility administrator licensed by DHS.

(3)

Adverse action - Any action in which DHS:

(A)

terminates or suspends a contract between a person and DHS before the contract's stated expiration date;

(B)

denies payment, in whole or part, for any claim arising under a contract;

(C)

terminates or suspends payments, in whole or part, to a contractor;

(D)

demands payment or repayment for contract or rule violations;

(E)

directs one of its contractors to terminate or suspend a subcontract or payments to any subcontractor or provider of medical services;

(F)

chooses not to renew a nursing facility contract;

(G)

reduces a contractor's block grant funds by 25% or more of the amount DHS reimburses if DHS plans to allocate the withheld funds to another contractor for similar services in the same geographic area, if the contractor alleges that the reduction was in violation of DHS rules, was discriminatory, or was without reasonable basis in law or fact; it does not apply to funding or contracts subject to DHS's competitive procurement rules;

(H)

denies, suspends, or revokes the license of a person:

(i)

providing home health services;

(ii)

operating an adult day-care facility or an adult day health care facility;

(iii)

operating a personal care facility;

(iv)

operating a convalescent or nursing facility;

(v)

operating a maternity home;

(vi)

operating an intermediate care facility for the mentally retarded; or

(vii)

operating a nurse aide training and competency evaluation program;

(I)

terminates the certification of a facility providing intermediate or long-term care for the mentally retarded;

(J)

imposes civil, administrative, or monetary penalties against a convalescent or nursing facility;

(K)

imposes administrative penalties against a person, as defined in paragraph (15)(B) of this section;

(L)

revokes, suspends, or refuses to renew an administrator's license; assesses an administrative penalty against an administrator; issues a written reprimand to an administrator; requires an administrator to participate in continuing education; or places an administrator on probation;

(M)

suspends a license or revokes a stay of an order suspending a license issued to any person by the Texas Department of Public Safety or the Texas Parks and Wildlife Department;

(N)

places a finding of abuse, neglect, or misappropriation of a resident's property by a nurse aide on the nurse aide registry;

(O)

denies, revokes, suspends, refuses to renew, or rescinds program approval of a medication aide permit;

(P)

excludes a person, as that term is defined in paragraph (15)(B) of this section, from eligibility for a license to operate an institution; or

(Q)

imposes any adverse sanction, penalty, or other action to which a person has a statutory right to a formal hearing in accordance with the provisions of this subchapter.

(4)

Commissioner - The commissioner of the Texas Department of Human Services.

(5)

Contract - Any written document or series of documents that obligates DHS to provide consideration to a person in exchange for goods or services from that person or that obligates DHS to provide goods or services in exchange for consideration.

(6)

Contractor - Any person with whom DHS has a written contract.

(7)

Controlling person - A person who has the ability, acting alone or in concert with others, to directly or indirectly influence, direct, or cause the direction of the management, expenditure of money, or policies of an institution or other person, including:

(A)

a management company, landlord, or other business entity that operates or contracts with others for the operation of an institution;

(B)

any person who is a controlling person of a management company or other business entity that operates an institution or that contracts with another person for the operation of an institution; and

(C)

any other individual who, because of a personal, familial, or other relationship with the owner, manager, landlord, tenant, or provider of an institution, is in a position of actual control or authority with respect to the institution, without regard to whether the individual is formally named as an owner, manager, director, officer, provider, consultant, contractor, or employee of the facility, unless the individual does not exercise any formal or actual influence or control over the operation of an institution.

(8)

Department - The Texas Department of Human Services.

(9)

Hearings Department - The Hearings Department of the Texas Department of Human Services.

(10)

Institution - An establishment that furnishes, in one or more facilities, food and shelter to four or more persons who are unrelated to the proprietor of the establishment, and provides minor treatment under the direction and supervision of a physician licensed by the Texas State Board of Medical Examiners, or other services that meet some need beyond the basic provision of food, shelter, and laundry.

(11)

License - When used in conjunction with a hearing to suspend a license to operate a motor vehicle or a license to engage in recreational activity, this term shall mean a license, certificate, registration, permit, or other authorization that:

(A)

is issued by a licensing authority;

(B)

is subject before expiration to suspension, revocation, forfeiture, or termination by an issuing licensing authority; and

(C)

a person must obtain to:

(i)

operate a motor vehicle; or

(ii)

engage in a recreational activity, including hunting and fishing, for which a license or permit is required.

(12)

Licensee - When used in conjunction with a hearing to suspend a license to operate a motor vehicle or a license to engage in recreational activity, this term shall mean the person whose license DHS seeks to suspend.

(13)

Licensing authority - When used in conjunction with a hearing to suspend a license to operate a motor vehicle or a license to engage in recreational activity, this term shall mean the Texas Department of Public Safety or the Texas Parks and Wildlife Department.

(14)

Order suspending a license - When used in conjunction with a hearing to suspend a license to operate a motor vehicle or a license to engage in recreational activity, this term shall mean an order issued by DHS directing a licensing authority to suspend a license.

(15)

Person - The following terms apply to the definition of a person:

(A)

Except as defined in subparagraph (B) of this paragraph, a person is an individual, partnership, corporation, association, governmental subdivision or agency, or a public or private organization of any character.

(B)

When used in conjunction with a hearing to deny, suspend, or revoke a license as provided by §242.061 of the Texas Health and Safety Code, an administrative penalty hearing as provided by §242.066 of the Texas Health and Safety Code, or an exclusion hearing as provided by §242.0615 of the Texas Health and Safety Code, a person is the applicant; the partner, officer, director, or managing employee of the applicant; the licensee; the partner, officer, director, or managing employee of the licensee; the owner or the one who controls the owner of the physical plant of a facility in which an institution operates or is to operate; or a controlling person.

(16)

Petitioner - The designation used by a person against whom an adverse action has been proposed or taken and who participates in a hearing conducted pursuant to this subchapter.

(17)

Respondent - The designation used by DHS when DHS is a party to a hearing conducted pursuant to this subchapter.

§79.1602.Computation of Time.

In computing any period of time prescribed under this subchapter or by order of the administrative law judge, the period begins on the day after the act or event in question and concludes on the last day of the period; however, if the last day is a Saturday, Sunday, or legal holiday, the last day runs until the next day that is not a Saturday, Sunday, or legal holiday.

§79.1603.Notice of Adverse Action.

(a)

Commissioner to send notice. The commissioner or the commissioner's designee shall send each person against whom the Texas Department of Human Services (DHS) takes adverse action notice of the adverse action.

(b)

Services. The notice shall be sent by certified mail, return receipt requested, unless DHS determines that a more immediate form of notice is required.

(c)

Contents of notice. The notice shall include details of the basis of the adverse action sufficient to enable the person to file a timely appeal of and request a hearing on the imposition of the adverse action by DHS. The notice shall inform the person that the person has the right to a hearing to contest the adverse action by sending a written request for a hearing to the Hearings Department and shall specify the date by which such written request must be received by the Hearings Department.

(d)

Notice not required. DHS is not required to give a person notice of adverse action with each billing transaction for areas of DHS that have a large volume of bills or which routinely post debit and credit entries. DHS must give the contractor an individual notice of appeal rights any time the contractor informs DHS that the contractor is dissatisfied with a claim transaction that is an adverse action.

(e)

Special requirements for contractors. A notice of adverse action involving a contract cancellation must specify whether the contract will remain in force pending completion of the appeal.

(f)

Special requirements for nurse aides. A notice of adverse action to a nurse aide accused of resident abuse, resident neglect, or misappropriation of a resident's property must include:

(1)

the nature of the allegations;

(2)

the date and time of the alleged occurrence;

(3)

notification of the right to a hearing;

(4)

notification of DHS's intent to report the findings to the nurse aide registry following a hearing;

(5)

the fact that the nurse aide's failure to request a hearing within 30 days from the date of the notice will result in reporting the findings to the nurse aide registry;

(6)

the consequences of waiving the right to a hearing;

(7)

the consequences of a finding through the hearing process that the alleged conduct occurred; and

(8)

the fact that the nurse aide has the right to be represented by an attorney of the nurse aide's choice at the nurse aide's expense.

(g)

Special requirements for administrative penalties assessed against nursing facility administrators.

(1)

Notice given by DHS. When DHS determines that an administrative penalty should be assessed against a nursing facility administrator, DHS shall give written notice of such determination to the administrator.

(2)

Contents of notice. The notice must include a brief summary of the alleged violation and a statement of the amount of the recommended penalty. The notice must inform the administrator of the date by which the administrator should submit its written request for a hearing to the Hearings Department and must inform the administrator that the administrator has a right to a hearing on the occurrence of the violation, the amount of the penalty, or both the occurrence of the violation and the amount of the penalty.

(h)

Special requirements for motor vehicle or recreational licenses.

(1)

Initiation of adverse action. DHS may initiate a proceeding to suspend a license by filing a petition with the Hearings Department.

(2)

Contents of petition. DHS's petition must state that license suspension is authorized under §23.003 of the Texas Human Resources Code and must allege the licensee's name; the licensee's social security number, if known; the type of license held by the licensee; the licensing authority involved; and the amount that DHS claims is owed by the licensee.

(3)

Notice of filing of petition. At the time of the filing of the petition to suspend a license, DHS shall give the licensee notice of the licensee's right to a hearing before the Hearings Department, notice of the deadline for requesting a hearing before the Hearings Department, and a form requesting a hearing for completion by the licensee for filing with the Hearings Department.

(4)

Contents of notice. The notice required under this section must inform the licensee that the licensee's license will be suspended on the 60th day after the date of service of the notice unless the licensee pays the amount owed to DHS; the licensee presents evidence of a payment history satisfactory to DHS in compliance with a reasonable repayment schedule; or the licensee appears at a hearing before the Hearings Department and shows that the petition for suspension of a license should be denied or that an order suspending the license should be stayed.

(5)

Service. DHS shall serve the notice required under this section in accordance with the rules for service in civil cases under the Texas Rules of Civil Procedure.

(i)

Special requirements for administrative penalties assessed pursuant to §242.066 of the Texas Health and Safety Code. A notice of adverse action to a person shall include a brief summary of the charges; the amount of the recommended penalty; whether the violation is subject to correction, and, if so, the date by which the institution must file a plan of correction and the date by which the plan of correction must be filed to avoid assessment of the penalty; and a statement that the person has a right to a hearing on the occurrence of the violation, the amount of the penalty, or both.

§79.1604.Request for a Hearing.

(a)

Time for filing. Unless otherwise provided by statute or this section, a person must file a written request for a hearing with the Hearings Department so that the Hearings Department receives the written request within 15 days from the date the person receives the Texas Department of Human Services' (DHS's) notice of adverse action.

(b)

Form of request. The request must be in writing, in the form of a petition or letter, and must state the basis of the appeal of the adverse action.

(c)

Referral to administrative law judge. Upon receipt of a request for a hearing, the director of the Hearings Department will assign the appeal to an administrative law judge for disposition according to this subchapter.

(d)

Special requirements for nurse aide appeals. A nurse aide must file a written request for a hearing with the Hearings Department so that the Hearings Department receives the written request within 30 days from the date the nurse aide receives DHS's notice of adverse action.

(e)

Special requirements for medication aide appeals. A medication aide or an applicant for a medication aide permit must file a written request for a hearing with the Hearings Department so that the Hearings Department receives the written request within 30 days from the date the medication aide or applicant receives DHS's notice of adverse action.

(f)

Special requirements for nursing facility administrator administrative penalty appeals. Within 20 days from the date the administrator receives DHS's notice of assessment of an administrative penalty, the administrator may file with the Hearings Department a written acceptance of the determination and the penalty recommended by DHS or a written request for a hearing on the occurrence of the violation, the amount of the penalty, or both the occurrence of the violation and the amount of the penalty.

(g)

Special requirements for motor vehicle and recreational license appeals. If a licensee wishes to request a hearing on DHS's petition to suspend a license, the licensee must file a written request for a hearing with the Hearings Department not later than the 20th day after the date of service of the notice.

(h)

Special requirements for administrative penalty appeals pursuant to §242.066 of the Texas Health and Safety Code.

(1)

Not later than the 20th day after the date on which DHS's notice of adverse action is sent, the person may give written consent to the recommended penalty, submit a plan of correction if the violation is subject to correction, or make a written request for a hearing.

(2)

If a plan of correction has been submitted and rejected, then, not later than the 20th day after the date on which DHS's notice that the plan of correction is rejected is sent, the person may give written consent to the recommended penalty or make a written request for a hearing.

(i)

Election of arbitration as alternative to hearing.

(1)

A person or DHS may elect binding arbitration as an alternative to a hearing for any of the following adverse actions, unless the United States Health Care Financing Administration requires that the appeal be resolved by the federal government:

(A)

failure to renew a license pursuant to the Texas Health and Safety Code, §242.033;

(B)

suspension or revocation of a license pursuant to the Texas Health and Safety Code, §242.061;

(C)

assessment of a civil penalty pursuant to the Texas Health and Safety Code, §242.065;

(D)

assessment of a monetary penalty pursuant to the Texas Health and Safety Code, §242.066; or

(E)

assessment of a penalty pursuant to the Texas Human Resources Code, §32.021(k).

(2)

The rules and procedures for electing arbitration as an alternative to a hearing are codified at 1 Texas Administrative Code Chapter 163 (relating to Arbitration Procedures for Certain Enforcement Actions of the Department of Human Resources).

§79.1605.Notice of Hearing.

(a)

Setting the hearing date. Within 30 days of the date of the request for hearing, the administrative law judge selects a hearing date in response to the request for hearing.

(b)

Scheduled hearing date. The administrative law judge must give the parties written notification of the hearing date at least 20 days before the date of the hearing.

(c)

Contents of notice. The written notice of hearing must include a statement of the time, date, and location of the hearing and a statement of the legal authority and jurisdiction under which the hearing will be conducted.

(d)

Service of notice. The notice of hearing may be served upon the parties in the manner deemed by the Hearings Department as being the most reliable method to ensure receipt of service by the parties. The method of service need not be identical for each party.

(e)

Expedited hearings. Upon written motion for either party for good cause shown, the administrative law judge may expedite the hearing. The administrative law judge must give the parties notice of the date of the expedited hearing at least ten days prior to the hearing date.

(f)

Special requirements for nursing facility administrator administrative penalty appeals. If the administrator requests a hearing regarding assessment of an administrative penalty or fails to respond to the Texas Department of Human Services (DHS's) notice of assessment of an administrative penalty and recommended penalty, the Hearings Department shall set a hearing on the determination of violation and recommended penalty, and give the notice provided by this section.

(g)

Special requirements for Summer Food Service Program appeals. In any appeal involving the federal Summer Food Service Program, a hearing must be scheduled and held within 14 days of the date the request for hearing is received by DHS.

§79.1606.Venue.

(a)

General venue. Unless otherwise noted by statute or this section, the hearing shall be conducted in Austin, Texas.

(b)

Contractor block grant fund reductions. In any hearing on reduction of a contractor's block grant funds, the Texas Department of Human Services (DHS) must hold one session of the hearing in the contractor's locality if requested in writing by a locally elected official or an organization with at least 25 members.

(c)

Special requirements for nurse aide appeals. In any appeal involving a nurse aide, the hearing shall be conducted in the DHS office nearest to the place of residence of the nurse aide.

(d)

Special requirements for medication aide appeals. In any appeal involving a medication aide or an applicant for a medication aide permit, the hearing shall be conducted in the DHS office nearest to the place of residence of the medication aide or applicant.

(e)

Special requirements for motor vehicle and recreational license appeals. Hearings involving motor vehicle and recreational licenses shall be conducted by telephone unless the administrative law judge finds that there is good cause to conduct the hearing in person.

(f)

Application for change of venue. Either party may file a written application with the administrative law judge requesting that the hearing be conducted at some location other than that specified in this section. The administrative law judge shall order a change in the location of the hearing if the administrative law judge finds that such is necessary for a full and fair resolution of the appeal.

(g)

Telephone hearings.

(1)

Filing. The administrative law judge, upon written motion of either party filed at least 14 days prior to the hearing date, may order all or part of the hearing to be conducted by telephone.

(2)

Showing required. The party requesting the telephone hearing must state the reasons for the request in the motion. If the administrative law judges finds that good cause exists to permit all or part of the hearing to be conducted by telephone, the motion will be granted.

(3)

Procedural rights and duties. All rights available to the parties at an in-person hearing apply to telephone hearings, subject only to the limitations of the physical arrangement. DHS shall notify the parties of the scheduled telephone hearing and the parties shall contact their respective witnesses to ensure the availability of the witnesses for the hearing.

(4)

Documentary evidence. To be offered in a telephone hearing, tangible or documentary evidence must be marked and filed with the administrative law judge with a copy provided to the opposing party or the party's representative at least five working days prior to the scheduled hearing.

(5)

Default. For a party to be considered as having failed to appear at a telephone hearing, one or more of the following conditions must exist for more than ten minutes after the scheduled time for hearing:

(A)

failure to answer the telephone;

(B)

failure to free the telephone line for a hearing; or

(C)

failure to be ready to proceed with the hearing as scheduled.

§79.1607.Representation of Parties.

(a)

Respondent. The Texas Department of Human Services (DHS) is represented in a hearing by an attorney appointed by the general counsel.

(b)

Petitioner. The petitioner may be represented by any of the following persons:

(1)

the petitioner;

(2)

a licensed attorney, upon filing of a notice of representation with the administrative law judge;

(3)

a non-attorney person designated in writing by the petitioner to the administrative law judge; or

(4)

if the petitioner is a corporation, by an officer, board member, or any other person designated by the corporation's board of directors by written resolution of the board filed with the administrative law judge.

(c)

Attorney not required. A petitioner is not required to have an attorney in order to appear and participate at a hearing. DHS will not provide an attorney to represent a petitioner.

(d)

Change in representation. If a party wishes to change its representative, the party should file a written notice of substitution of representative with the administrative law judge. An attorney wishing to withdraw from representing a party should do so in accordance with the Texas Rules of Civil Procedure.

§79.1608.Prehearing Procedure.

(a)

Prehearing motions.

(1)

Filing. All motions must be filed with the Hearings Department.

(2)

Form of motion. All motions filed prior to the hearing must be in writing and must specify the desired relief and the reasons for the requested relief and must be filed in a timely manner so as to allow for the filing of a response by the non-moving party and issuance of a ruling by the administrative law judge.

(3)

Response. A party shall be allowed to file a written response to any prehearing motion with the Hearings Department.

(4)

Certificate of service. All motions and responses to motions must contain a certificate stating that a copy of the motion or response has been served on the opposing party or the party's representative. The certificate must state the date and manner of service and should bear the signature of the person making the certification.

(b)

Rules of Civil Procedure. In all prehearing matters not specifically addressed by this section, the Texas Rules of Civil Procedure will apply, unless the administrative law judge finds that there is good cause for waiving those rules.

(c)

Prehearing conference. On the motion of either party or on the administrative law judge's own motion, the administrative law judge may direct the parties to appear for a prehearing conference for the purpose of simplifying the issues in the case, narrowing the scope of the hearing, or for any other purpose the administrative law judge finds is necessary. The administrative law judge may order that certain information be exchanged by the parties by a date prior to the hearing date, including, but not limited to, the following:

(1)

a list of witnesses each party may call to testify;

(2)

a written statement of the disputed issues for consideration at the hearing;

(3)

copies of any written testimony to be offered at the hearing; and

(4)

copies of documentary evidence to be offered at the hearing.

(d)

Respondent's statement of the case. At least ten days before the hearing date, or at least three days before the hearing date in an expedited case, the Texas Department of Human Services (DHS) must ensure that the petitioner and the administrative law judge receive a statement of the case that includes a concise statement of the matters asserted by DHS in support of its adverse action and a reference to the particular sections of all statutes, rules, and regulations upon which DHS relies.

(e)

Petitioner's statement of the case. Upon a timely written motion from the respondent, the administrative law judge may order the petitioner to file a statement of the case that includes a concise statement of the matters asserted by the petitioner in support of its position and a reference to the particular sections of all statutes, rules, and regulations upon which the petitioner relies. Such statement shall be filed at least ten days before the hearing date, or at least three days before the hearing date in an expedited case.

(f)

Postponement or continuance of hearing.

(1)

Motion in writing and time for filing. If either party desires to postpone or continue the hearing, such party must file a sworn written motion for continuance at least seven days prior to the date set for the hearing.

(2)

Contents of motion. The motion must specify the reasons for the continuance and must make reference to all prior motions for continuance filed in the same proceeding.

(3)

Failure to comply. Failure to comply with the requirements of this subsection, except for good cause shown by the party seeking the continuance, shall be grounds for the administrative law judge to deny the motion.

(4)

Order. The administrative law judge shall issue an order denying or granting a motion for continuance properly filed under this subsection. The decision to grant or deny the motion for continuance shall be solely at the discretion of the administrative law judge.

§79.1609.Discovery and Depositions.

(a)

Discovery. Unless otherwise specified in this section, discovery shall be conducted pursuant to the Texas Rules of Civil Procedure.

(b)

Copy of previous statement. Any person, including a non-party, is entitled to and may obtain a copy of a statement in a party's possession, custody, or control that the person has previously made about the contested case or its subject matter. A statement is considered to be previously made if it is:

(1)

a written statement signed or otherwise adopted or approved by the person making it; or

(2)

a stenographic, mechanical, electrical, or other recording, or a transcription of the recording, which is a substantially verbatim recital of an oral statement by the person making it and which was contemporaneously recorded.

(c)

Depositions.

(1)

Commission to take deposition.

(A)

Issuance of commission. Upon written motion and the deposit of an amount that will reasonably ensure payment of the amounts estimated to accrue under this section, the administrative law judge may issue a commission, addressed to the officers authorized by statute to take depositions, requiring that the deposition of a witness be taken.

(B)

Subpoena. The commission shall authorize the issuance of any subpoena necessary to require that the witness appear and produce, at the time the deposition is taken, books, records, papers, or other objects that may be necessary and proper for the purpose of the proceeding.

(C)

Requirements of officer taking deposition. The commission shall require an officer to whom it is addressed to:

(i)

examine the witness before the officer on the date and at the place named in the commission; and

(ii)

take answers under oath to questions asked the witness by a party to the proceeding, the state agency, or an attorney for a party or the agency.

(D)

Witness to remain in attendance. The commission shall require the witness to remain in attendance from day to day until the deposition is begun and completed.

(2)

Place of deposition. A deposition in a contested case shall, in the absence of agreement by the parties, be taken in the county where the witness resides, is employed, or regularly transacts business in person.

(3)

Objections to deposition testimony. Objections to deposition testimony are reserved for the action of the administrative law judge. The administrative law judge may consider objections other than those made at the taking of the deposition.

(4)

Submission of deposition to witness.

(A)

Deposition submitted to witness. The deposition shall be submitted to the witness for examination after the testimony is fully transcribed and shall be read to or by the witness. The witness and the parties may waive the examination by written agreement. If the witness is a party and is represented by counsel, the deposition officer shall notify the attorney that the deposition is ready for examination and reading at the office of the deposition officer and that if the witness does not appear and examine, read, and sign the deposition before the 21st day after the date on which the notice is mailed, the deposition shall be returned as provided by this section for unsigned depositions.

(B)

Changes to deposition. The officer taking a deposition shall enter on the deposition a change in form or substance that the witness desires to make and a statement of the reasons given by the witness for making the change. After the change and statement of reasons for the change have been entered, the witness shall sign the deposition.

(C)

Signature of witness. A witness must sign a deposition at least three days before the date of the hearing or the deposition shall be returned by the officer as an unsigned deposition.

(D)

Failure of witness to sign. If a deposition is not signed by the witness, the officer shall sign it and state on the record the fact of the witness's waiver, illness, absence, or refusal to sign and the reason given, if any, for failure to sign. The deposition shall then be used as though signed by the witness.

(5)

Return of deposition to Hearings Department. A deposition may be returned to the Hearings Department by mail or by hand-delivery. If returned by mail, the Hearings Department employee receiving the deposition shall endorse on the deposition that it was received by mail and sign the deposition. If returned by hand-delivery, the person delivering the deposition shall sign an affidavit before the Hearings Department stating that the person delivering the deposition received the deposition from the officer who took the deposition, that the deposition has not been out of the deliverer's possession since receipt from the officer, and that the deposition has not been altered.

(6)

Opening of deposition by Hearings Department employee. At the request of a party, a deposition may be opened by a Hearings Department employee. The Hearings Department employee who opens the deposition shall endorse on the deposition the date and at whose request it was opened, and then sign the deposition. The deposition shall remain on file with the Hearings Department for inspection by the parties.

(7)

Use of deposition. A party is entitled to use a deposition without regard to whether a cross-interrogatory has been propounded.

(8)

Expenses.

(A)

Non-party witness. A non-party witness is entitled to receive:

(i)

ten cents for each mile from and to the place of the deposition if the place is more than 25 miles from the witness's residence and if a personal motor vehicle is used for travel;

(ii)

reimbursement of transportation expenses to and from the place of the deposition if the place is more than 25 miles from the witness's residence and the witness does not use a personal motor vehicle for travel;

(iii)

meal and lodging expenses if the witness's residence is more than 25 miles from the place of the deposition; and

(iv)

$10 for each day or part of a day that the person is necessarily present.

(B)

Payment of expenses. Amounts required to be paid by this section shall be paid by the party at whose request the witness appears. If the Texas Department of Human Services (DHS) is required to pay the witness, expenses shall not exceed the maximum rates provided by law for state employees.

(9)

Failure to comply with a commission. If a person fails to comply with a commission, DHS, acting through the attorney general, or the party requesting the commission may bring suit to enforce the commission in the county in which the hearing is conducted.

(d)

Abuse of discovery; sanctions.

(1)

Motions for sanctions or order compelling discovery. A party may make written motion to the administrative law judge for an order compelling discovery or for sanctions. A party may request sanctions without having first obtained an order compelling discovery.

(2)

Failure to comply with order or with discovery request. If a party or a person designated to testify on behalf of a party fails to comply with a proper discovery request or to obey an order compelling discovery, an administrative law judge may, after opportunity for hearing, make orders in response to the failure, including any of the following orders:

(A)

preventing the non-responding party from conducting further discovery;

(B)

charging the non-responding party, the party representative, or both with the expenses of discovery or taxable costs:

(C)

deeming any facts pertaining to the order, or any other facts, to be established, as claimed by the moving party;

(D)

disallowing the non-responding party from supporting or opposing designated claims or defenses, or prohibiting the party from introducing designated matters in evidence;

(E)

striking pleadings or parts of pleadings;

(F)

staying further action until the order is obeyed;

(G)

dismissing the proceeding with or without prejudice; or

(H)

rendering a default judgment against the non-responding party.

(3)

Abuse of the discovery process. The administrative law judge may impose any of the sanctions specified in this subsection on a party who abuses the discovery process in seeking or resisting discovery or who files a request, response, or answer that is frivolous, oppressive, or made for the purpose of delay.

(4)

Failure to supplement discovery. A party who fails or refuses to supplement a response to a discovery request may not present evidence that the party was under a duty to provide in an initial or supplemental response to a discovery request, and may not offer the testimony of an expert witness or of any other person having knowledge of the discoverable matter, unless the administrative law judge finds good cause to permit the evidence despite the noncompliance. The burden of establishing good cause is upon the party offering the evidence, and good cause must be shown in the record.

(5)

Record of basis for sanction. The administrative law judge shall state the specific basis for any sanction in the record or in a written order.

§79.1610.Informal Disposition of Appeal.

At any time before the conclusion of the hearing, informal disposition of a case may be made, in writing, by stipulation, agreed settlement, consent order, default, or withdrawal of the request for a hearing by the petitioner.

§79.1611.Conduct of Hearings.

(a)

Authority of administrative law judge. The administrative law judge is in charge of the hearing. The administrative law judge has the authority to:

(1)

administer oaths;

(2)

examine witnesses;

(3)

issue subpoenas;

(4)

consolidate causes of action;

(5)

rule on admissibility of evidence;

(6)

establish reasonable time limits for conducting hearings;

(7)

request information;

(8)

issue intermediate orders;

(9)

limit the witnesses to be called by the parties; and

(10)

issue orders necessary to enforce rulings, including, but not limited to:

(A)

exclusion of evidence;

(B)

exclusion of witnesses;

(C)

summary orders or default judgment on any issue; and

(D)

postponement or dismissal of the hearing, with or without prejudice to a party.

(b)

Decorum. Each party, witness, attorney, representative, or other person involved in the hearing shall show proper dignity, courtesy, and respect for the hearing process and for the hearing participants. The administrative law judge may take any action necessary to maintain proper decorum and conduct including, but not limited to:

(1)

recessing the hearing;

(2)

continuing the hearing to reconvene at another time or place; and

(3)

excluding any person from the hearing for a period and under conditions that the administrative law judge considers fair and just.

(c)

Record. A record must be made of the hearing that includes:

(1)

all pleadings, motions, and intermediate rulings and orders;

(2)

evidence received or considered;

(3)

a statement of matters officially noticed;

(4)

questions and offers of proof, objections, and rulings;

(5)

proposed findings of fact and conclusions of law and exceptions;

(6)

the decision; and

(7)

all staff memoranda or data submitted to or considered by the administrative law judge.

(d)

Stenographic record. A stenographic record of each hearing on the merits must be made. If requested by the administrative law judge, the proceedings must be transcribed and transcript given to the administrative law judge. The costs associated with recording and preparing the transcript may be assessed to one or more parties. If a party wants a transcript of the hearing, that party must pay all costs associated with providing the transcript. If a party fails to appear at a hearing the administrative law judge may assess court reporter costs against the party or parties failing to appear.

(e)

Rules of procedure. In all procedural matters not specifically provided for in this subchapter, the Texas Rules of Civil Procedure will be followed unless the administrative law judge determines that there is good cause for waiving the Texas Rules of Civil Procedure.

(f)

Evidence. The Texas Rules of Civil Evidence will be followed except that, when necessary to ascertain facts not reasonably susceptible of proof under the Texas Rules of Civil Evidence, evidence otherwise inadmissible may be admitted, unless precluded by statute, if it is the type of evidence commonly relied upon by reasonably prudent persons in the conduct of their affairs.

(g)

Presentation of cases. Subject to any rulings and orders of the administrative law judge, all parties shall have the opportunity to present evidence and argument on all issues involved, and to respond to evidence and arguments presented. Each party will have the opportunity to call witnesses, cross-examine witnesses, and present rebuttal testimony. The administrative law judge may call a witness or direct a party to call a witness whose testimony the administrative law judge believes is necessary to make a final decision.

(h)

Subpoenas. On the written request of any party, on a showing of good cause, and on deposit of sums that will reasonably ensure payment of the amounts estimated to accrue under this section, the administrative law judge may issue a subpoena addressed to the sheriff or any constable to require the attendance of witnesses and the production of books, records, papers, or other objects as may be necessary and proper for the purposes of the proceedings. The party requesting the subpoena is responsible for preparation and service of the subpoena. If a party is not represented by an attorney, the administrative law judge may prepare the subpoena. If a person fails to comply with a subpoena, the requesting party may bring suit to enforce the subpoena in a district court in the county in which the hearing is conducted.

(i)

Failure of parties to appear. If a party or the party's representative is notified of the hearing and fails to appear, all matters stated in evidence introduced at the hearing may be considered as uncontroverted.

§79.1612.Final Decisions and Orders.

(a)

Form of final decision. A final decision shall be in writing and shall include separately stated findings of fact and conclusions of law.

(b)

Orders. The administrative law judge shall enter all orders necessary to implement the final decision. The administrative law judge may also make recommendations that the administrative law judge considers appropriate to the case.

(c)

Time for issuing decisions. Unless otherwise provided by statute or by this section, a decision shall be issued on or before the expiration of 60 days from the date the hearing is closed.

(d)

Manner of issuing decisions. Decisions shall be mailed by certified mail, return receipt requested, to the parties or their representatives. If a decision is returned unclaimed, the decision shall be re-mailed by regular mail service. Decisions may be hand- delivered or sent by intra-agency mail to the Texas Department of Human Services (DHS). A decision is deemed issued on the date it is mailed, hand-delivered, or placed in intra-agency mail. A decision that has been re-mailed after being returned unclaimed is deemed issued on the date it is first mailed, if mailed to the last known address of the addressee.

(e)

Special requirements for nurse aide appeals.

(1)

Time for issuing decision. In any action involving an appeal by a nurse aide, the final decision must be issued on or before the expiration of 120 days from the date the nurse aide's request for hearing is received by DHS.

(2)

Determinations of neglect. The administrative law judge must not find that a nurse aide has neglected a resident if the nurse aide demonstrates that the neglect was caused by factors beyond the control of the nurse aide.

(f)

Special requirement for medication aide appeals. In any action involving an appeal by a medication aide or an applicant for a medication aide permit, the final decision must be issued on or before the expiration of 120 days from the date the medication aide's or applicant's request for hearing is received by DHS.

(g)

Special requirements for Child and Adult Care Food Program appeals. In any appeal involving the federal Child and Adult Care Food Program, the final decision must be issued on or before the expiration of 120 days from the day DHS received a request for hearing.

(h)

Special requirements for Summer Food Service Program appeals. In any appeal involving the federal Summer Food Service Program, the final decision must be issued on or before the expiration of five days from the date the hearing is closed.

(i)

Special requirements for nursing facility administrator administrative penalty appeals. When a final decision is issued in any appeal involving an administrative penalty, a notice shall be provided to the administrator of the administrator's right to judicial review of the final decision.

(j)

Special requirements for motor vehicle and recreational license appeals.

(1)

Order suspending a license.

(A)

The administrative law judge shall issue an order suspending the licensee's license if the administrative law judge finds that, after notice of the adverse action from DHS, the licensee:

(i)

failed to reimburse DHS for an amount in excess of $250 granted in error to the licensee under the Food Stamp program or the program of financial assistance under Chapter 31 of the Texas Human Resources Code;

(ii)

has been provided an opportunity to make payments toward the amount owed under a repayment schedule; and

(iii)

failed to comply with a repayment schedule previously entered into by DHS and the licensee.

(B)

The administrative law judge may order the licensee to refrain from engaging in the licensed activity as a part of any final order suspending a license.

(C)

If the administrative law judge does not make the findings set out in subparagraph (A) of this paragraph, the administrative law judge shall dismiss DHS's petition to suspend a license, without prejudice, and shall not issue an order suspending the licensee's license.

(D)

The Hearings Department shall forward a final order suspending a license to the appropriate licensing authority, except as provided in subparagraph (F) of this paragraph.

(E)

The administrative law judge may stay an order suspending a license conditioned on the licensee's compliance with a reasonable repayment schedule that is incorporated in the final order suspending a license.

(F)

A final order suspending a license that incorporates a stay of such suspension shall not be served on the licensing authority unless the stay is revoked.

(2)

Allegations of petition deemed admitted. The administrative law judge shall deem the allegations of the petition for suspension of license to be admitted and shall render an order suspending a license if the licensee fails to respond to the notice of adverse action issued by the DHS, request a hearing, or appear at a hearing.

(3)

Revocation of the stay of an order suspending a license.

(A)

DHS may file a motion with the Hearings Department seeking to revoke the stay of an order suspending a license if the licensee does not comply with the terms of a reasonable repayment plan made part of the order suspending a license.

(B)

The motion seeking to revoke the stay of an order suspending a license must allege the manner in which the licensee failed to comply with the payment plan.

(C)

Upon receipt of a motion to revoke the stay of an order suspending a license, the Hearings Department shall issue notice by certified mail, return receipt requested, to the licensee. The notice shall include:

(i)

a statement that the motion was filed, including the date and time of the filing; and

(ii)

the date, time, and location of the hearing on the motion.

(D)

The licensee shall be given no less than ten day's notice prior to the hearing on the motion to revoke the stay of the order suspending the license.

(E)

If, after the hearing, the administrative law judge finds that the licensee has not complied with the terms of the repayment plan contained in the order suspending the license, the administrative law judge shall revoke the stay of the order and render a final order suspending the license.

(4)

Vacating or staying order suspending a license.

(A)

The administrative law judge may, upon written motion filed with the Hearings Department, vacate or stay an order suspending a license.

(B)

A motion to vacate an order suspending a license must allege that the licensee has paid all amounts owed to DHS.

(C)

A motion to stay an order suspending license must allege that the licensee has established a satisfactory payment record with DHS.

(D)

Upon receipt of a motion to vacate or stay an order suspending a license, the Hearings Department shall transmit a copy of the motion to the non-movant.

(E)

Upon receipt of a motion to vacate or stay an order suspending a license, the non-movant will have ten days in which to file a written response in support of or in opposition to the motion.

(F)

Upon receipt of a written response in opposition to a motion to vacate or stay an order suspending a license, the Hearings Department shall set the motion for a hearing not less than ten days from the date of the notice of the hearing. The Hearings Department shall notify the parties of the date, time and location of the hearing.

(G)

If the administrative law judge finds that all amounts owed to DHS have been paid, the administrative law judge shall enter an order vacating the order suspending the license.

(H)

If the administrative law judge finds that the licensee has established a satisfactory payment record, the administrative law judge shall enter an order staying the order suspending the license.

(I)

The Hearings Department shall promptly deliver all orders vacating or staying an order suspending a license to the appropriate licensing authority.

(J)

An order issued under this section does not preclude DHS from seeking any other relief provided by law, including that provided by this subchapter.

(k)

Special requirements for administrative penalty appeals pursuant to §242.066 of the Texas Health and Safety Code.

(1)

Contents of decision. The administrative law judge shall find that:

(A)

a violation has occurred and assess a penalty; or

(B)

a violation has not occurred.

(2)

Notice of decision. The commissioner shall provide written notice of the decision to the person. If the decision is adverse to the person, the commissioner shall further notify the person as to the amount of the penalty, the interest rate, the date upon which interest begins to accrue, whether the penalty should be paid in full or whether the penalty will be ameliorated, and the person's right to judicial review of the decision.

§79.1613.Motions for Rehearing.

(a)

Filing. Either party may file a written motion for rehearing. Any motion for rehearing must be filed with and received by the Hearings Department on or before the 20th day after the date on which the final decision was mailed.

(b)

Reply. A written reply to a motion for rehearing must be filed with and received by the Hearings Department on or before the 30th day after the date on which the final decision was mailed.

(c)

Order on motion. The administrative law judge shall rule on a motion for rehearing not later than the 45th day after the date on which the final decision was mailed or the motion for rehearing is overruled by operation of law.

(d)

Extension of deadlines. The administrative law judge may, by written order extend the time of filing a motion or reply or for ruling on the motion for a period not to exceed the 90th day after the day on which the final decision was mailed.

(e)

Shortening the time for filing. The parties may, in writing or on the record, agree to a date other than that provided by this section for filing a motion for rehearing if the specified date is not before the date the order is signed or later than the 20th day after the date the order is issued.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on January 23, 1998.

TRD-9801068

Glenn Scott

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: March 9, 1998

For further information, please call: (512) 438-3765


Part XX. Texas Workforce Commission

Chapter 800. General Administration

Subchapter G. Petition for Adoption of Rules

40 TAC §§800.251-800.255

The Texas Workforce Commission (Commission) proposes new §§ 800.251-800.255, concerning the Petition for Adoption of Rules.

New Subchapter G., Petition for Adoption of Rules, is proposed as the location of new §§800.251-800.255.

New Subchapter G in Chapter 800 provides the form and procedure for processing a petition for the adoption of rules.

New § 800.251 sets forth the short title and purpose for this subchapter.

New § 800.252 sets forth the definitions that apply to this subchapter.

New § 800.253 sets forth the procedure for submission and the petition requirements that apply to this subchapter.

New § 800.254 sets forth the procedure for reviewing the petitions submitted pursuant to this subchapter.

New § 800.255 sets forth a description of Commission action that may result from the submission made pursuant to this subchapter.

Randy Townsend, Director of Finance, has determined that for the first five-year period the rules are in effect, there will be minimal fiscal implications as a result of enforcing or administering the rules. There will be minimal additional costs to the state as a result of enforcing the rules. There will be no reduction in costs to the state. There will be no costs to local governments.

J. Ferris Duhon, Acting Deputy Director of Legal Services, has determined that for each year of the first five years the rules are in effect, the public benefit anticipated as a result of enforcing the rules will be the enhanced ability of the public to recommend rules to the Commission. There is no anticipated effect on small businesses and there are no anticipated costs to persons who are required to comply with the rules as proposed.

All official comments submitted to J. Ferris Duhon will be considered before the final rules are adopted. Comments on the proposed rules may be submitted to J. Ferris Duhon, Acting Deputy Director of Legal Services, Texas Workforce Commission Building, 101 East 15th Street, Room 264, Austin, Texas 78778 (512) 463-2293. Comments may also be submitted via fax to J. Ferris Duhon at (512) 463-1426, or e-mailed to: ferris.duhon@twc.state.tx.us. Comments must be received by the Commission by 5:00 p.m. on March 10, 1998 for consideration.

The new rules are proposed under Texas Labor Code, §301.061 which provides the Commission with the authority to adopt, amend or rescind such rules as it deems necessary for the effective administration of the Act and Texas Government Code, §2001.021 which provides for the Commission to promulgate by rule the form for a petition for adoption of rules and the procedure for its submission, consideration, and disposition of the petition.

The proposed rules affect the Texas Labor Code, Title 4.

§800.251.Title and Purpose.

(a)

Title. These rules may be cited as the Petition for the Adoption of Rules.

(b)

Purpose. The purpose of these rules is to implement the provisions of Texas Government Code §2001.21 regarding agency procedure for addressing petitions for the adoption of rules.

§800.252.Definitions.

The following words and terms, when used in this subchapter, shall have the following meaning, unless the context clearly indicates otherwise.

Commission

--The Texas Workforce Commission.

§800.253.Submission and Petition Requirements.

Any interested person may petition the Texas Workforce Commission (Commission) requesting the adoption of a rule. Petitioners should submit petitions in writing to the General Counsel of the Commission. The petition may be in any legible form but must contain at least the following information.

(1)

Petitioner's Name and Address. The petitioners' name, complete mailing address, and signature should appear in the request.

(2)

Explanation and Justification. A petitioner should include an explanation and justification of the proposed rule. The explanation should include a concise statement of the relevant background information necessary to understand the need for the rule, the existing problem that the proposed rule is to correct, and the foreseeable effects of the requested rule.

(3)

Text. A petitioner should include the text of the proposed rule reflecting added or deleted words. A reference to any existing rule including the title, chapter and section number, if applicable, should appear on the request.

(4)

Authority. A statement of the statutory or other authority for taking the requested action should also appear on the request.

§800.254.Review of Petition.

Upon receipt of a substantially complete petition, the general counsel will forward a copy of the petition to the appropriate division director for a response.

(1)

Division Response. Within 20 days after receiving the petition from the general counsel, the division director shall respond in writing to the General Counsel recommending either denying the request or initiating the rulemaking process. The division director's response shall contain the reasons for the recommendation.

(2)

General Counsel Recommendation. Within 20 days after receiving the division director's response, the general counsel shall submit to the commissioners the petition, the division director's response and a written recommendation by the general counsel specifying the reasons for the recommendation.

§800.255.Commission Decision and Action.

(a)

The Commissioners shall issue the final decision regarding the petition within 60 days after receipt of the petition from the petitioner to either:

(1)

deny the petition in writing, stating the reasons for the denial; or

(2)

initiate rulemaking proceedings in accordance with Texas Government Code, Chapter 2001, Administrative Procedure, Subchapter B, Rulemaking, as it may be amended.

(b)

The Commission may modify any proposed rule to ensure that it conforms to the format of commission rules, adequately addresses the perceived problem, and conforms to the filing requirements of the Texas Register.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on January 23, 1998.

TRD-9801076

J. Randel (Jerry) Hill

General Counsel

Texas Workforce Commission

Earliest possible date of adoption: March 9, 1998

For further information, please call: (512) 463-8812