TITLE social-services-and-assistance

Part I. Texas Department of Human Services

Chapter 50. Day Activity and Health Services

The Texas Department of Human Services (DHS) proposes the repeal of §§50.50.1-50.5, 50.102, 50.201, 50.202, 50.301, 50.302, 50.401-50.405, 50.407-50.410, 50.501, 50.601, 50.701, 50.703, 50.704, 50.801, and 50.6901- 50.6907, concerning definitions, general requirements for participation, availability of services and emergency information, service description, method of payment, denial of contract, eligibility requirements, medical criteria, nurse requirements, housekeeper/driver, requirement to service eligible clients, written referrals, facility-initiated referrals, correction to facility documentation, initiation of services, notifications, changes in client's condition, suspension of services, renewal of services, facility not entitled to payment, records, documentation errors, administrative errors, financial errors, sanctions, introduction, cost reporting procedures, reimbursement determination, allowable cost information, list of allowable costs, unallowable costs, and reimbursement methodology for day activity and health services: 1997 and subsequent cost reports, in its Day Activity and Health Services (DAHS) chapter. The purpose of the repeals is to delete the DAHS chapter, so DAHS requirements can be included in Chapter 98, Adult Day Care Facilities. Adult day care facilities must be licensed if they choose to provide DAHS, and must follow DAHS rules. Also in this issue of the Texas Register , DHS is proposing changes to Chapter 98, Adult Day Care Facilities, to add DAHS information.

Eric M. Bost, commissioner, has determined that for the first five-year period the proposed sections will be 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 provide easier access to the rules for providers who must meet DAHS and adult day care facility requirements. There will be no effect on providers who are already in business. New providers on or after May 1, 1999, must ensure that Life Safety Code and construction requirements are met. Providers and potential providers are expected to meet all rule guidelines or they will not receive a license. 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 Maxcine Tomlinson at (512) 438-3169 in DHS's Long Term Care Policy Section. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-069, 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 A. Program Overview

40 TAC §§50.1-50.5

(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, Chapters 22 and 32, which provides the department with the authority 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 repeals implement §§22.001-22.030 and 32.001-32.042 of the Human Resources Code.

§50.1. Definitions.

§50.2. General Requirements for Participation.

§50.3. Availability of Services and Emergency Information.

§50.4. Service Description.

§50.5. Method of Payment.

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 14, 1999.

TRD-9900216

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Proposed date of adoption: May 1, 1999

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


Subchapter B. Contracting

40 TAC §50.102

(Editor's note: The text of the following section proposed for repeal will not be published. The section 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 repeal is proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which provides the department with the authority 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 repeal implements §§22.001-22.030 and 32.001-32.042 of the Human Resources Code.

§50.102. Denial of Contract.

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 14, 1999.

TRD-9900217

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Proposed date of adoption: May 1, 1999

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


Subchapter C. Eligibility

40 TAC §50.201, §50.202

(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, Chapters 22 and 32, which provides the department with the authority 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 repeals implement §§22.001-22.030 and 32.001-32.042 of the Human Resources Code.

§50.201. Eligibility Requirements.

§50.202. Medical Criteria.

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 14, 1999.

TRD-9900218

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Proposed date of adoption: May 1, 1999

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


Subchapter D. Facility Staffing Requirements

40 TAC §50.301, §50.302

(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, Chapters 22 and 32, which provides the department with the authority 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 repeals implement §§22.001-22.030 and 32.001-32.042 of the Human Resources Code.

§50.301. Nurse Requirements.

§50.302. Housekeeper/driver.

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 14, 1999.

TRD-9900219

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Proposed date of adoption: May 1, 1999

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


Subchapter E. Service Requirements

40 TAC §§50.401-50.405, 50.407-50.410

(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, Chapters 22 and 32, which provides the department with the authority 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 repeals implement §§22.001-22.030 and 32.001-32.042 of the Human Resources Code.

§50.401. Requirement to Service Eligible Clients.

§50.402. Written Referrals.

§50.403. Facility-Initiated Referrals.

§50.404. Correction to Facility Documentation.

§50.405. Initiation of Services.

§50.407. Notifications.

§50.408. Changes in Client's Condition.

§50.409. Suspension of Services.

§50.410. Renewal of Services.

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 14, 1999.

TRD-9900220

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Proposed date of adoption: May 1, 1999

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


Subchapter F. Billing

40 TAC §50.501

(Editor's note: The text of the following section proposed for repeal will not be published. The section 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 repeal is proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which provides the department with the authority 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 repeal implements §§22.001-22.030 and 32.001-32.042 of the Human Resources Code.

§50.501. Facility not Entitled to Payment.

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 14, 1999.

TRD-9900221

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Proposed date of adoption: May 1, 1999

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


Subchapter G. Recordkeeping Requirements

40 TAC §50.601

(Editor's note: The text of the following section proposed for repeal will not be published. The section 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 repeal is proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which provides the department with the authority 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 repeal implements §§22.001-22.030 and 32.001-32.042 of the Human Resources Code.

§50.601. Records.

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 14, 1999.

TRD-9900222

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Proposed date of adoption: May 1, 1999

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


Subchapter H. Monitoring/Quality Assurance/Audits

40 TAC §§50.701, 50.703, 50.704

(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, Chapters 22 and 32, which provides the department with the authority 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 repeals implement §§22.001-22.030 and 32.001-32.042 of the Human Resources Code.

§50.701. Documentation Errors.

§50.703. Administrative Errors.

§50.704. Financial Errors.

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 14, 1999.

TRD-9900223

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Proposed date of adoption: May 1, 1999

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


Subchapter I. Sanctions

40 TAC §50.801

(Editor's note: The text of the following section proposed for repeal will not be published. The section 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 repeal is proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which provides the department with the authority 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 repeal implements §§22.001-22.030 and 32.001-32.042 of the Human Resources Code.

§50.801. Sanctions.

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 14, 1999.

TRD-9900224

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Proposed date of adoption: May 1, 1999

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


Subchapter J. Reimbursement Methodology for Day Activity and Health Services

40 TAC §§50.6901-50.6907

(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, Chapters 22 and 32, which provides the department with the authority 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 repeals implement §§22.001-22.030 and 32.001-32.042 of the Human Resources Code.

§50.6901. Introduction.

§50.6902. Cost Reporting Procedures.

§50.6903. Reimbursement Determination.

§50.6904. Allowable Cost Information.

§50.6905. List of Allowable Costs.

§50.6906. Unallowable Costs.

§50.6907. Reimbursement Methodology for Day Activity and Health Services: 1997 and Subsequent Cost Reports.

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 14, 1999.

TRD-9900225

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Proposed date of adoption: May 1, 1999

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


Chapter 98. Adult Day Care Facilities

The Texas Department of Human Services (DHS) proposes amendments to §§98.1, 98.2, 98.11-98.13, 98.15-98.19, 98.81, 98.82, and 98.102- 98.104, concerning purpose, definitions, criteria for licensing, building approval, applicant disclosure requirements, renewal procedures and qualifications, change of ownership, change of staff, time periods for processing licensing applications, criteria for denying a license or renewal of a license, procedural requirements, determinations and actions pursuant to inspections, nonemergency suspension, revocation, and emergency suspension and closing order; proposes the repeal of §§98.20, 98.41-98.44, 98.61, 98.105, 98.122, and 98.123, concerning license fees, general requirements, program requirements, safety, sanitation, construction and initial survey of completed construction, informal reconsideration, required postings, and procedures for inspection of public records; and proposes new §§98.20, 98.21, 98.41-98.43, 98.61, 98.62, 98.83, 98.84, 98.91-98.95, 98.201-98.212, and 98.6901-98.6907, concerning informal reconsideration, license fees, construction and initial survey of completed construction, safety, sanitation, general requirements, program requirements, referrals to the attorney general, procedures for inspection of public records, definitions of abuse, neglect, and exploitation, abuse, neglect, or exploitation reportable to the Texas Department of Human Services by facilities, complaint investigation, investigations of complaints, confidentiality, eligibility requirements for participation, program overview, written referrals for services, facility-initiated referrals, initiation of services, program requirements, suspension of day activity and health services, notifications, record maintenance, administrative errors and corrections, billing and payment, sanctions, introduction, cost reporting procedures, reimbursement determination, allowable cost information, list of allowable costs, unallowable costs, and reimbursement methodology for day activity and health services: 1997 and subsequent cost reports, in its Adult Day Care Facilities chapter. The purpose of the proposal is to combine Chapter 50, Day Activity and Health Services (DAHS) requirements into Chapter 98, Adult Day Care Facilities. Adult day care facilities must be licensed if they choose to provide DAHS, and must follow DAHS rules. DHS also has clarified the Life Safety Code and licensure application procedures, expanded the rules on the reporting of abuse, neglect, and exploitation and complaint incidents to more closely reflect state law, deleted the use of an unapproved substitute form as an administrative error, and changed the exception percentage for a DAHS administrative error from 14% to 12%. Also in this issue of the Texas Register , DHS is proposing the repeal of Chapter 50, Day Activity and Health Services.

Eric M. Bost, commissioner, has determined that for the first five- year period the proposed sections will be 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 provide easier access to rules for providers who must meet DAHS and adult day care facility requirements. There will be no effect on providers that are already in business. New providers on or after May 1, 1999, must ensure that Life Safety Code and construction requirements are met. Providers and potential providers are expected to meet all rule guidelines or they will not receive a license. 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 Maxcine Tomlinson at (512) 438-3169 in DHS's Long Term Care Policy Section. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-069, 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 A. Introduction

40 TAC §98.1, §98.2

The amendments are proposed under the Human Resources Code, Chapter 103, which provides the department with the authority to license adult day care facilities, and under the Human Resources Code, Title 2, Chapters 22 and 32, which provides the department with the authority 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 amendments implement §§22.001-22.030, 32.001-32.042, and 103.001-103.011 of the Human Resources Code.

§98.1.Purpose.

The purpose of this chapter is to implement the provisions of the Human Resources Code, Chapter 103, by providing licensing procedures, establishing standards for quality adult day care, and a safe and sanitary environment for clients of adult day care facilities ; and to implement 45 Code of Federal Regulations (CFR), Part 96, Title XX of the Social Security Act, and 42 CFR §440.130 (d), Title XIX of the Social Security Act to provide for the care, treatment, health, safety, and welfare of Medicaid clients' day activity and health services in adult day care facilities. Day Activity and Health Services must comply with the following additional requirements found in Chapter 20 of this title (relating to Cost Determination Process), Chapter 12, Subchapter A of this title (relating to Child and Adult Care Food Program), Chapter 48 of this title (relating to Community Care for the Aged and Disabled), Chapter 49 of this title (relating to Contracting for Community Care Services), Chapter 69 of this title (relating to Contracted Services), and Chapter 79 of this title (relating to Legal Services) .

§98.2.Definitions.

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

(1)

Abuse--The negligent or willful infliction of injury, unreasonable confinement, intimidation, or cruel punishment with resulting physical or emotional harm or pain to an elderly or disabled person by the person's caretaker, family member, or other individual who has an ongoing relationship with the person, or sexual abuse of an elderly or disabled person, including any involuntary or nonconsensual sexual conduct that would constitute an offense under §21.08, Penal Code (indecent exposure) or Chapter 22, Penal Code (assaultive offenses) committed by the person's caretaker, family member, or other individual who has an ongoing relationship with the person.

(2)

Adult--A person 18 years or older, or an emancipated minor.

(3)

Adult day care facility--A facility that provides services under an Adult Day Care Program on a daily or regular basis, but not overnight, to four or more elderly or handicapped persons who are not related by blood, marriage, or adoption to the owner of the facility.

(4)

Adult day care program--A structured, comprehensive program that is designed to meet the needs of adults with functional impairments through an individual plan of care by providing health, social, and related support services in a protective setting.

(5)

Affiliate--With respect to a:

(A)

partnership, each partner thereof;

(B)

corporation, each officer, director, principal stockholder, and subsidiary; and each person with a disclosable interest;

(C)

natural person which includes each:

(i)

person's spouse;

(ii)

partnership and each partner thereof of which said person or any affiliate of said person is a partner; and

(iii)

corporation in which said person is an officer, director, principal stockholder, or person with a disclosable interest.

(6)

Ambulatory--Mobility not relying on walker, crutch, cane, other physical object, or use of wheelchair.

(7)

Applicant--A person required to be licensed under Human Resources Code, Chapter 103.

(8)

Authorization--A Texas Department of Human Services' (DHS's) employee decision, before services begin and before payment can be made, that Day Activity and Health Services (DAHS) may be provided to a client.

(9)

Caseworker--A DHS employee who is responsible for DAHS case management activities. Activities include, but are not limited to, eligibility determination, client registration, assessment and reassessment of client's need, service plan development, and intercession on the client's behalf.

(10)

Client--A person who receives the services of an adult day care program including a Day Activities and Health Services program .

(11)

Contract manager--A DHS employee, designated as the primary contact point between the facility and DHS, who is responsible for the overall management of the DAHS contract.

(12)

Day Activity Health Services (DAHS)--Day activity and health services provided under a contract with DHS to clients residing in the community through rehabilitative nursing and social services.

(13)

Days--Calendar days, not workdays, unless otherwise noted in the text.

(14)

Department--Texas Department of Human Services.

(15)

DHS--Texas Department of Human Services.

(16)

Dietitian Consultant--A registered dietitian; a person licensed by the Texas State Board of Examiners of Dietitians; or a person with a baccalaureate degree with major studies in food and nutrition, dietetics, or food service management.

(17)

Direct service staff--Employees of a facility, including the director, licensed nurse, activities director, and attendants. An attendant is a person who may provide direct services to clients of the facility such as a facility bus driver, food service worker, aide, janitor, porter, maid, and laundry worker.

(18)

Director--The person responsible for the overall operation of a facility.

(19)

Elderly person--A person 65 years of age or older.

(20)

Existing building--In these standards, except where defined otherwise, a building either occupied as an adult day care facility at the time of initial inspection by the department or converted to occupancy as an adult day care facility.

(21)

Exploitation--The illegal or improper act or process of a caretaker, family member, or other individual, who has an ongoing relationship with the elderly person or person with a disability, using the resources of an elderly person or person with a disability for monetary or personal benefit, profit, or gain without the informed consent of the elderly person or person with a disability.

(22)

Facility-- See definition for adult day care facility. [ A building occupied by an adult day care program. ]

(23)

Fraud--A deliberate misrepresentation or intentional concealment of information to receive or to be reimbursed for service delivery to which the individual is not entitled.

(24)

Functional impairment--Condition that requires assistance with one or more personal care services including, but not limited to, bathing, dressing, preparing meals, feeding, grooming, taking self-administered medication, toileting, and ambulation.

(25)

Handicapped person--As used in this chapter, the term "person with disabilities" is used in place of the term "handicapped person" as that term is used in the Human Resources Code, Chapter 103.

(26)

Health assessment--A plan of care that identifies the specific needs of the client and how those needs will be addressed by the facility.

(27)

Health services--Includes personal care, nursing, or therapy services. Personal care services include services listed under the definition of functional impairment in this section. Nursing services may include the administration of medications; physician- ordered treatments, such as dressing changes; and monitoring the health condition of the individual. Therapy services may include physical, occupational, or speech therapy.

(28)

Human services--All of the following major areas constitute human services:

(A)

personal social services (day care, counselling, in-home care, protective services);

(B)

health services (home health, family planning, preventive health programs, nursing home, hospice);

(C)

education services (all levels of school, Head Start, vocational programs);

(D)

housing and urban environment services (Section 8, public housing);

(E)

income transfer services ( Temporary Assistance for Needy Families [ Aid to Families with Dependent Children ], Food Stamps); and

(F)

justice and public safety services (parole and probation, rehabilitation).

(29)

Human service program--An intentional, organized, ongoing effort designed to provide good to others. The characteristics of human service programs are that they are:

(A)

dependent on public resources and are planned and provided by the community;

(B)

directed toward meeting human needs arising from day-to-day socialization , health care, and developmental experiences;

(C)

used to aid, rehabilitate, or treat those in difficulty or need.

(30)

Income-eligible--An adult who is either a supplemental security income (SSI) or Temporary Assistance for Needy Families (TANF) client, but who has an income that is equal to or less than the eligibility level established by DHS for DAHS services.

(31)

Individual plan of care--A written plan which documents functional impairment and the health, social, and related support needed by an individual. The plan is developed jointly with and approved by the individual and/or responsible party.

(32)

Licensed vocational nurse (LVN)--A person currently licensed by the Board of Vocational Nurse Examiners of Texas who works under the supervision of a registered nurse (RN) or a physician.

(33)

Long-term care facility--A facility that provides care and treatment or personal care services to four or more unrelated persons, including a nursing facility, a personal care facility, and a facility serving persons with mental retardation and related conditions.

(34)

Management services--Services provided under contract between the owner of a facility and a person to provide for the operation of a facility, including administration, staffing, maintenance, or delivery of client [ resident ] services. Management services do not include contracts solely for maintenance, laundry, or food services.

(35)

Manager--A person having a contractual relationship to provide management services to a facility.

(36)

Medicaid-eligible--An individual eligible for Medicaid as an SSI or a TANF client, or eligible for medical assistance only while living in the community, or eligible through a federally-approved waiver.

(37)

Medically-related program--A human services program under the human services- health services category in the definition of human services in this section.

(38)

Neglect - The failure to provide for oneself the goods or services that are necessary to avoid physical harm, mental anguish, or mental illness; or the failure of a caregiver to provide these goods or services.

(39)

Nurse--A registered nurse (RN) or a licensed vocational nurse (LVN) licensed in the state of Texas.

(40)

Nursing services--Services provided by licensed nursing personnel which include, but are not limited to, observation; promotion and maintenance of health; prevention of illness and disability; management of health care during acute and chronic phases of illness; guidance and counseling of individuals and families; and referral to physicians, other health care providers, and community resources when appropriate.

(41)

Person--An individual, corporation, or association.

(42)

Person with a disclosable interest--A person with a disclosable interest is any person who owns five percent interest in any corporation, partnership, or other business entity that is required to be licensed under Human Resources Code, Chapter 103. A person with a disclosable interest does not include a bank, savings and loan, savings bank, trust company, building and loan association, credit union, individual loan and thrift company, investment banking firm, or insurance company unless such entity participates in the management of the facility.

(43)

Person with disabilities--A person whose functioning is sufficiently impaired to require frequent medical attention, counseling, physical therapy, therapeutic or corrective equipment, or another person's attendance and supervision.

(44)

Physician's orders--An order for DAHS that is signed and dated by a medical doctor (MD) or doctor of osteopathy (DO) who is licensed to practice medicine in the state of Texas. The physician's order must include the physician's license number.

(45)

Plan of care--See definition of health assessment.

(46)

Protective setting--A setting in which an individual's safety is ensured by the physical environment and/or personnel (staff).

(47)

Registered nurse (RN)--A person currently registered by the Texas Board of Nurse Examiners to practice professional nursing.

(48)

Related support services--Provision of services to the client, family member, or other caregivers that may improve their ability to assist with an individual's independence and functioning. Services include, but are not limited to, information and referral, transportation, teaching caregiver skills, respite, counseling, instruction and training, and support groups.

(49)

Responsible party--Anyone the client designates as his representative.

(50)

Safety--Action taken to protect from injury or loss of life due to such conditions as fire, electrical hazard, unsafe building or site conditions, and the presence of hazardous materials.

(51)

Sanitation--Action taken to protect from illness, the transmission of disease, or loss of life due to unclean surroundings, the presence of disease transmitting insects or rodents, unhealthful conditions or practices in the preparation of food and beverage, or the care of personal belongings.

(52)

Semiambulatory--Mobility relying on walker, crutch, cane, other physical object, or independent use of wheelchair.

(53)

Social activities--Therapeutic, educational, cultural enrichment, recreational, and social activities on site or in the community in a planned program to meet the social needs and interests of the individual.

(54)

Working with people--Responsible for the delivery of services to individuals either directly or indirectly. Experience as a manager would meet this definition; however, an administrative support position such as a bookkeeper does not. Experience does not have to be in a paid capacity. A person serving as a minister receiving an expense allowance in money plus free housing qualifies for experience in working with people.

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 14, 1999.

TRD-9900226

Paul Leche

General Counsel

Texas Department of Human Services

Proposed date of adoption: May 1, 1999

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


Subchapter B. Application Procedures

40 TAC §§98.11-98.13, 98.15-98.21

The amendments and new sections are proposed under the Human Resources Code, Chapter 103, which provides the department with the authority to license adult day care facilities, and under the Human Resources Code, Title 2, Chapters 22 and 32, which provides the department with the authority 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 amendments and new sections implement §§22.001-22.030, 32.001-32.042, and 103.001-103.011 of the Human Resources Code.

§98.11.Criteria for Licensing.

(a)

A person [ or governmental unit, acting jointly or severally, ] must be licensed to establish [ , conduct ] or operate an adult day care [ maintain a ] facility in Texas [ this state ].

(b)

An applicant for a license must submit a complete application form and license fee to the Texas Department of Human Services (DHS) [ (department) ].

(c)

In respect to all licenses in effect after December 31, 1999, all services provided under licensure by DHS are required, as a condition of licensure, not to constitute a threat to the health and safety of residents as a result of computer software, firmware, or computer logic unable to recognize different centuries or more than one century on or after January 1, 2000.

(d)

[ (c) ] An applicant for a license must affirmatively show the following:

(1)

the applicant, person with a disclosable interest, affiliate, and manager have not been convicted of a felony or crime involving moral turpitude in Texas [ this state ] or any other state;

(2)

the facility meets the standards of the Life Safety Code , NFPA 101, 1988 ;

(3)

the facility meets the construction standards in Subchapter C [ D ] of this chapter; and

(4)

the facility meets the standards for operation based upon an on- site survey.

[(d)

The applicant must provide all information requested on the application form and submit the appropriate fees as a prerequisite for the department to conduct a feasibility inspection or plan review, as requested or required.]

(e)

DHS may deny an application that remains incomplete after 10 days.

(f)

[ (e) ] A license will [ shall ] be issued to a facility meeting all requirements of this chapter and will [ shall ] be valid for one year. [ Each license shall specify the ] The maximum allowable number of clients [ to be cared for at any one time. No greater number of clients shall be kept at any one time than is authorized by the license ] specified on the license may not be exceeded .

(g)

[ (f) ] The license must be posted in the area where clients are admitted and accessible to them and/or their legal guardians.

§98.12.Building Approval.

(a)

(No change.)

(b)

Local Health Authority. The following procedures allow the local health authority to provide recommendations to DHS concerning licensure of a facility.

(1)

New facility. The sponsor of a new facility under construction or a previously unlicensed facility will provide to DHS a copy of a dated written notice to the local health authority that construction or modification has been or will be completed by a specific date. The sponsor will also provide a copy of a dated written notice of the approval for occupancy by the local fire marshal or local building code authority, if applicable. The local health authority may provide recommendations to DHS's Long Term Care-Regulatory (LTC-R) Licensing Section [ DHS ] regarding the status of compliance with local codes, ordinances, or regulations. [ Local health authority comments and recommendations must be received by DHS within ten days after the date of the sponsor's notice of the fire marshal or building code authority approval for occupancy. The local health authority may recommend that a state license be issued or denied; however, the final decision on licensure status remains with DHS. ]

(2)

Increase in capacity. The license holder must request an application for increase in capacity from DHS's LTC-R Licensing Section [ DHS ]. DHS's LTC-R Licensing Section [ DHS ] must provide the license holder with the application form, and DHS must notify the local fire marshal and the local health authority of the request. The license holder must arrange for the inspection of the facility by the local fire marshal. [ Upon completion of the inspection, the license holder must notify the local health authority and DHS in writing if the facility meets local code requirements. The local health authority may provide recommendations to DHS regarding the status of compliance with local codes, ordinances, or regulations. Local health authority comments and recommendations must be received within ten days after the date of the facility's notice of the local fire marshal or building code authority approval. The local health authority may recommend that an increase in capacity be granted or denied; however, the final decision on the increase remains with DHS. ] The facility must send DHS's LTC-R Licensing Section a copy of the written notice sent to the local health authority notifying them of the increase in capacity. DHS will approve the application only if the facility if found to be in compliance with the standards. Approval to occupy the increased capacity may be granted by DHS prior to the issuance of the license covering the increased capacity after inspection by DHS if standards are met.

(3)

Change of ownership. The applicant for a change of ownership license will provide to DHS a copy of a letter notifying the local health authority of the request for a change of ownership. The local health authority may provide recommendations to DHS regarding the status of compliance with local codes, ordinances, or regulations. [ Local authority recommendations must be received within ten days of the date of the letter from the new owner or date of change of ownership, whichever is later, if the recommendations are to be considered by DHS. ]

(4)

Renewal. DHS sends the local health authority a copy of the DHS license renewal notice specifying the expiration date of the facility's current license. The local health authority may provide recommendations to DHS regarding the status of compliance with local codes, ordinances, or regulations. The local authority may also recommend that a state license be issued or denied; however, the final decision on licensure status remains with DHS. [ Local health authority comments and recommendations must be received at least 30 days prior to expiration of the license for consideration by DHS. ]

[(5)

Inspection/plan review. Any existing building being considered for licensure must either submit a plan for review and approval or request a feasibility inspection to be performed by a representative of DHS to determine construction or renovation requirements. The fees for inspection and/or plan review must be in accordance with §98.21 of this title (relating to Fees for Plan Reviews, Construction Inspection Services, and Feasibility Inspection Services).]

§98.13.Applicant Disclosure Requirements.

(a)-(b)

(No change.)

(c)

General information required. [ An applicant must file with DHS an application which must contain: ]

[(1)

the name of the applicant and, if an individual, whether the applicant has attained the age of 18 years;]

[(2)

the type of facility;]

[(3)

the location of the facility;]

[(4)

the name of the director;]

(1)

[ (5) ] For [ for ] initial applications and change of ownership only, evidence of the right to possession of the facility at the time the application will be granted, which may be satisfied by the submission of applicable portions of a lease agreement, deed or trust, or appropriate legal document , must be filed with DHS . The names and addresses of any persons or organizations listed as owner of record in the real estate, including the buildings and grounds appurtenant to the buildings, must be disclosed to DHS . [ ; ]

(2)

[ (6) ] The [ the ] certificate of good standing issued by the Comptroller of Public Accounts must be filed for an initial application, a change of ownership, or a renewal. [ ; and ]

(3)

[ (7) ] The [ the ] certificate of incorporation issued by the Secretary of State for a corporation or a copy of the partnership agreement for a partnership must be filed for an initial application or a change of ownership .

(4)

At the request of DHS, an applicant or license holder must provide to DHS any additional background information within 30 days of DHS's request.

[(d)

Disclosure requirements. Applicants must disclose the following information for the two-year period preceding the application date, concerning the applicant, persons with a disclosable interest, officers, affiliates, and manager, without regard to whether the data required relates to current or previous events:]

[(1)

denial or revocation of a license to operate a health care, long term care, personal care, or day care facility in any state;]

[(2)

federal or state Medicaid or Medicare sanctions or penalties;]

[(3)

state or federal criminal convictions for any offense that provides a penalty of incarceration;]

[(4)

unsatisfied final judgments;]

[(5)

operation of a facility that has been decertified in any state under Medicare or Medicaid;]

[(6)

debarment, exclusion, or contract cancellation in any state from Medicare or Medicaid;]

[ (7)

eviction involving any property or space used as a facility in any state;]

[(8)

orders from any court restraining or enjoining the applicant, manager, or any person with a disclosable interest from operating a health care, long-term care, personal care, or day care facility in any state; and]

[(9)

any of the adverse actions listed in this subsection taken against the applicant by all relevant licensing and certification agencies in all other states in which the applicant owns, operates, or manages long-term care, personal care, or adult day care facilities. The applicant must obtain letters or other documentation from those agencies attesting to the adverse actions or the absence of any such adverse actions.]

[(e)

Required ownership and management information for the past year.]

[(1)

Each applicant for a license to operate a facility must disclose to DHS the name and business address of each:]

[(A)

limited partner and general partner if the applicant is a partnership;]

[(B)

director and officer if the applicant is a corporation; and]

[(C)

person having a beneficial ownership interest of five percent or more in the applicant corporation, partnership, or other business entity.]

[(2)

If any person described in this section has served or currently serves as an administrator, general partner, limited partner, trustee or trust applicant, sole proprietor, or any applicant or licensee who is a sole proprietorship, executor, or corporate officer or director of or has held a beneficial ownership interest of five percent or more in any other health care, long-term care, personal care, or adult day care facility, the applicant must disclose the relationship to DHS, including the name and current or last address of the facility and the date such relationship commenced and, if applicable, the date it was terminated.]

[(3)

If the applicant or licensee is a subsidiary of another organization, the information shall include the names and addresses of the parent organization and the names and addresses of the officers and directors of the parent organization.]

[(4)

If the facility is operated by, or proposed to be operated under, a management contract, the names and addresses of any person or organization, or both, having an ownership or discloseable interest of five percent or more in the management company shall be disclosed to the department.]

[(5)

The information required by this section must be provided to DHS upon initial application for licensure, and changes in the information must be provided to DHS on an annual basis, except that a licensee must notify DHS within 30 days of any change of the facility's administrator or management services.]

(d)

[ (f) ] License issued in fiduciary capacity. The provisions of this section do not apply to a bank, trust company, financial institution, title insurer, escrow company, or underwriter title company to which a license is issued in a fiduciary capacity except for provisions that require disclosure relating to the manager of the facility.

§98.15.Renewal Procedures and Qualifications.

(a)

(No change.)

(b)

Each license holder must file an application for renewal with the Texas Department of Human Services (DHS) at least 45 days prior to the expiration of the current license. DHS considers that an individual has filed a timely and sufficient application for the renewal of a license, if the license holder:

(1)

(No change.)

(2)

submits an incomplete application to DHS with a letter explaining the circumstances which prevented the inclusion of the missing information, and DHS receives the incomplete application and letter at least 45 days before the current license expires. The missing information must be provided and the application completed within 30 days of the current license expiration date or the application may be denied for failure to provide the required information.

(c)

(No change.)

(d)

Failure to file a timely and sufficient application will result in the expiration of the license on the expiration date listed on the license.

(e)

[ (d) ] The application for renewal must contain the same information required for an original application and [ as well as payment of ] the annual licensing fees.

(f)

[ (e) ] The renewal of a license may be denied for the same reasons an original application for a license may be denied (see §98.19 of this title (relating to Criteria for Denying a License or Renewal of a License)).

§98.16.Change of Ownership.

(a)

During the license term, a license holder may not transfer the license as a part of the sale of the facility. Prior to the sale of the facility, the license holder must notify the Texas Department of Human Services (DHS) that a change of ownership will be occurring. A change of ownership is a change:

(1)

of 50% or more in the ownership of the business organization or sole proprietorship that is licensed to operate the facility; or

(2)

in the federal tax payer identification number.

(b)-(c)

(No change.)

§98.17.Change of Staff.

(a)

A new facility director must submit qualifying documentation (see §98.62 [ §98.42 ] of this title (relating to Program Requirements)) for approval by the Long Term Care- Regulatory (LTC-R) Regional Office, Texas Department of Human Services (DHS) , [ approval ] within 30 days of the change. If the facility director leaves, a facility director must be in place within 30 days of such vacancy.

(b)

A new facility activities director must submit qualifying documentation (see §98.62 [ §98.42 ] of this title (relating to Program Requirements)) for approval within 30 days of the change. A facility activities director must be in place within 30 days of such vacancy.

(c)

If the facility does not have a director or activities director within 30 days of vacancy, the facility will submit a letter to the LTC-R Regional Office requesting an extension. The LTC-R Regional Office will notify the facility in writing of the length of extension.

§98.18.Time Periods for Processing Licensing Applications.

(a)-(d)

(No change.)

(e)

Except as provided in the following sentence, a [ A ] license will be issued or denied within 30 days of the receipt of a complete application or within 30 days prior to the expiration date of the license. However, DHS may delay on an application for renewal of a license for up to six months if the facility is subject to a proposed or pending licensure termination action on or within 30 days prior to the expiration date of the license. The issuance of the license constitutes DHS's official written notice to the facility of the acceptance and filing of the application.

(f)

[ Reimbursement of fees. ]

[ (1) ]

In the event the application is not processed in the time periods as stated in this section, the applicant has a right to request of the program director full reimbursement of all filing fees paid in that particular application process. If the program director does not agree that the established periods have been violated or finds that good cause existed for exceeding the established periods, the request will be denied.

(g)

[ (2) ] Good cause for exceeding the period established is considered to exist if:

(1)

[ (A) ] the number of applications to be processed exceeds by 15% or more the number processed in the same calendar quarter of the preceding year;

(2)

[ (B) ] another public or private entity used in the application process caused the delay; or

(3)

[ (C) ] other conditions existed giving good cause for exceeding the established periods.

(h)

[ (3) ] If the request for full reimbursement is denied, the applicant may appeal directly to the commissioner for resolution of the dispute. The applicant must send a written statement to the commissioner describing the request for reimbursement and the reasons for it. The program director also may send a written statement to the commissioner describing the program's reasons for denying reimbursement. The commissioner makes a timely decision concerning the appeal and notifies the applicant and the program in writing of the decision.

§98.19.Criteria for Denying a License or Renewal of a License.

(a)

The Texas Department of Human Services (DHS) may deny an initial license or refuse to renew a license if an applicant, manager, or affiliate:

(1)

substantially fails to comply with the requirements described in §§98.61-98.62 [ §§98.41-98.44 ] of this title (relating to General Requirements and [ , ] Program Requirements ) , and §§98.42-98.43 of this title (relating to Safety [ , ] and Sanitation) including, but not limited to:

(A)-(B)

(No change.)

(2)-(4)

(No change.)

(5)

fails to pay the following fees, taxes, and assessments when due:

(A)

licensing fees as described in §98.21 [ §98.20 ] of this title (relating to License Fees); and

(B)

(No change.)

(6)

(No change.)

(b)-(e)

(No change.)

(f)

If DHS denies a license or refuses to issue a renewal of a license, the applicant or licensee may request an administrative hearing. Administrative hearings must be held under the provisions of the Administrative Procedures Act (APA), Title 10 of the Texas Government Code, §§2001.051 et seq . , and DHS's formal hearing rules in Chapter 79 of this title, Subchapter Q (relating to Formal Appeals) [ §§79.1601-79.1614 of this title (relating to Formal Hearings) ].

§98.20.Informal Reconsideration.

(a)

Before the institution of proceedings to revoke or suspend a license or deny an application for the renewal of a license, the Texas Department of Human Services (DHS) gives the license holder:

(1)

notice by personal service or by registered or certified mail of the facts or conduct alleged to warrant the proposed action; and

(2)

an opportunity to show compliance with all requirements of law for the retention of the license by sending the director of Long Term Care-Regulatory a written request for an informal review. The request must:

(A)

be postmarked within 10 days of the date of DHS's notice and be received in the state office of the director of Long Term Care- Regulatory within 10 days of the date of the postmark; and

(B)

contain specific documentation refuting DHS's allegations.

(b)

DHS's review will be limited to a review of documentation submitted by the license holder and information used by DHS as the basis for its proposed action and will not be conducted as an adversary hearing. DHS will give the license holder a written affirmation or reversal of the proposed action.

§98.21.License Fees.

The license fee is $25. The fee must be paid with each initial application, change of ownership application, and annually with each application for renewal of the license. Payment of fees must be by check or money order made payable to the Texas Department of Human Services.

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 14, 1999.

TRD-9900227

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Proposed date of adoption: May 1, 1999

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


40 TAC §98.20

(Editor's note: The text of the following section proposed for repeal will not be published. The section 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 repeal is proposed under the Human Resources Code, Chapter 103, which provides the department with the authority to license adult day care facilities.

The repeal implements the Human Resources Code, Chapter 103, §§103.001-103.011.

§98.20.License Fees.

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 14, 1999.

TRD-9900228

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Proposed date of adoption: May 1, 1999

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


Subchapter C. Standards for Adult Day Care and Adult Day Health Care Facilities

40 TAC §§98.41-98.44

(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, Chapter 103, which provides the department with the authority to license adult day care facilities.

The repeals implement the Human Resources Code, Chapter 103, §§103.001-103.011.

§98.41.General Requirements.

§98.42.Program Requirements.

§98.43.Safety.

§98.44.Sanitation.

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 14, 1999.

TRD-9900229

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Proposed date of adoption: May 1, 1999

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


Subchapter C. Facility Construction Procedures

40 TAC §§98.41-98.43

The new sections are proposed under the Human Resources Code, Chapter 103, which provides the department with the authority to license adult day care facilities, and under the Human Resources Code, Title 2, Chapters 22 and 32, which provides the department with the authority 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 §§22.001-22.030, 32.001-32.042, and 103.001-103.011 of the Human Resources Code.

§98.41.Construction and Initial Survey of Completed Construction.

(a)

Construction phase.

(1)

The Texas Department of Human Services (DHS) Licensing Section in Austin, Texas, must be notified in writing of construction start.

(2)

All construction must be done in accordance with minimum licensing requirements. It is the sponsor's responsibility to employ qualified personnel to prepare the contract documents for construction of a new facility or remodeling of an existing facility. Contract documents for additions and remodeling and for the construction of an entirely new facility must be prepared by an architect licensed by the Texas State Board of Architectural Examiners. Drawings must bear the seal of the architect. Certain parts of final plans, designs, and specifications must bear the seal of a registered professional engineer approved by the State Board of Registration for Professional Engineers to operate in Texas. These certain parts include sheets and sections covering structural, electrical, mechanical, and sanitary engineering.

(A)

Remodeling is the construction, removal, or relocation of walls and partitions; the construction of foundations, floors, or ceiling- roof assemblies; the expanding or altering of safety systems (including, but not limited to, sprinkler, fire alarm, and emergency systems); or the conversion of space in a facility to a different use.

(B)

General maintenance and repairs of existing material and equipment, repainting, applications of new floor, wall, or ceiling finishes, or similar projects are not included as remodeling, unless as a part of new construction. DHS must be provided flame spread documentation for new materials applied as finishes.

(b)

Contract documents.

(1)

Site plan documents must include grade contours; streets with names; north arrow; fire hydrants; fire lanes; utilities, public or private; fences; unusual site conditions, such as ditches, low water levels, other buildings on-site; and indications of buildings five feet or less beyond site property lines.

(2)

Foundation plan documents must include general foundation design and details.

(3)

Floor plan documents must include room names, numbers, and usages; numbered doors including swing; windows; legend or clarification of wall types; dimensions; fixed equipment; plumbing fixtures; and kitchen basic layout; and identification of all smoke barrier walls (outside wall to outside wall) or fire walls.

(4)

For both new construction and additions or remodeling to existing buildings, an overall plan of the entire building must be drawn or reduced to fit on an 8« inch by 11 inch sheet; two reduced plans must be submitted for file record. See subsection (d)(3) of this section.

(5)

Schedules must include door materials, widths, types; window materials, sizes, types; room finishes; and special hardware.

(6)

Elevations and roof plan must include exterior elevations, including material note indications and any roof top equipment; roof slopes, drains, and gas piping; and interior elevations where needed for special conditions.

(7)

Details must include wall sections as needed (especially for special conditions); cabinet and built-in work, basic design only; cross sections through buildings as needed; and miscellaneous details and enlargements as needed.

(8)

Building structure documents must include structural framing layout and details (primarily for column, beam, joist, and structural frame building); roof framing layout (when this cannot be adequately shown on cross section); cross sections in quantity and detail to show sufficient structural design and structural details as necessary to assure adequate structural design, also calculated design loads.

(9)

Electrical documents must include electrical layout, including lights, convenience outlets, equipment outlets, switches, and other electrical outlets and devices; service, circuiting, distribution, and panel diagrams; exit light system (exit signs and emergency egress lighting); emergency electrical provisions (such as generators and panels); fire alarm and similar systems (such as control panel, devices, and alarms); sizes and details sufficient to assure safe and properly operating systems; and a staff communication system.

(10)

Plumbing documents must include plumbing layout with pipe sizes and details sufficient to assure safe and properly operating systems, water systems, sanitary systems, gas systems, other systems normally considered under the scope of plumbing, fixtures, and provisions for combustion air supply.

(11)

Heating, ventilation, and air-conditioning (HVAC) documents must include sufficient details of HVAC systems and components to assure a safe and properly operating installation including, but not limited to, heating, ventilating, and air-conditioning layout, ducts, protection of duct inlets and outlets, combustion air, piping, exhausts, and duct smoke and/or fire dampers; and equipment types, sizes, and locations.

(12)

If a sprinkler system is provided or required by any authority, documents must include plans and details of NFPA designed systems; plans and details of partial systems provided only for hazardous areas; and electrical devices interconnected to the alarm system.

(13)

Other layouts, plans, or details as may be necessary for a clear understanding of the design and scope of the project, including plans covering private water or sewer systems must be reviewed by the local health or waste water authority having jurisdiction.

(14)

Specifications must include installation techniques, quality standards and/or manufacturers, references to specific codes and standards, design criteria, special equipment, hardware, painting, and any others as needed to amplify drawings and notes.

(c)

Initial survey of completed construction.

(1)

Upon completion of construction, including grounds and basic equipment and furnishings, a final construction inspection (initial survey) of the facility, including additions or remodeled areas, is required to be performed by the Long Term Care-Regulatory Regional Office prior to occupancy. The completed construction must have the written approval of the local authorities having jurisdiction, including the fire marshal and building inspector.

(2)

After the completed construction has been surveyed by DHS and found acceptable, this information will be conveyed to the licensing officer of DHS as part of the information needed to issue a license to the facility. In the case of additions or remodeling of existing facilities, a revision or modification to an existing license may be necessary. The building, grades, drives, and parking must essentially be 100% complete at the time of this initial visit for occupancy approval and licensing, including basic furnishings and operational needs. A facility may accept up to three clients between the time it receives initial approval from DHS and the time the license is issued.

(3)

The following documents must be available to DHS's surveyor at the time of the survey of the completed building:

(A)

written approval of local authorities as called for in paragraph (1)of this subsection;

(B)

written certification of the fire alarm system by the installing agency (Form FML-009 of the Texas State Fire Marshal);

(C)

documentation of materials used in the building which are required to have a specific limited fire or flame spread rating including special wall finishes or floor coverings, flame retardant curtains (including cubicle curtains), rated ceilings, etc. This must include a signed letter from the installer, in the case of carpeting, for example, verifying that the carpeting installed is named in the laboratory test document;

(D)

approval of the completed sprinkler system installation by the designing engineer. A copy of the material list and test certification must be available;

(E)

service contracts for maintenance and testing of alarm systems, sprinkler systems, etc.;

(F)

a copy of gas test results of the facility's gas lines from the meter;

(G)

a written statement from an architect/engineer stating that he certifies that the building was constructed to meet NFPA 101, Life Safety Code, and all locally applicable codes, and that the facility is in substantial conformance with minimum licensing requirements; and

(H)

the contract documents specified in subsection (b) of this section.

(d)

Nonapproval of new construction.

(1)

If, during the initial on-site survey of completed construction, the surveyor finds certain basic requirements not met, he may recommend to DHS that the facility not yet be licensed and approved for occupancy. Such basic items may include the following:

(A)

construction which does not meet minimum code or licensure standards for basic requirements such as corridors being less than required width, ceilings installed at less than the minimum seven-foot six-inch height, client bedroom dimensions less than required, and other such features which would disrupt or otherwise adversely affect the clients and staff if corrected after occupancy;

(B)

no written approval by local authorities;

(C)

fire protection systems not completely installed or not functioning properly, including, but not limited to, fire alarm systems, emergency power and lighting, and sprinkler systems;

(D)

required exits not all usable according to NFPA 101, 1988 requirements;

(E)

telephone not installed or not properly working;

(F)

sufficient basic furnishings, essential appliances, and equipment are not installed or not functioning; and

(G)

any other basic operational or safety feature which the surveyor, as the authority having jurisdiction, encounters which in his judgment would preclude safe and normal occupancy by clients on that day.

(2)

If the surveyor encounters only less basic and less important deficiencies, licensure may be recommended based on an approved written plan of correction from the facility's administrator.

(3)

Copies of reduced size floor plans on an 8« inch by 11 inch sheet must be submitted in duplicate to DHS for record/file use and for the facility's use and for facility's use for evacuation plan, fire alarm zone identification, etc. The plan must contain basic legible information such as scale, room usage names, actual bedroom numbers, doors, windows, and any other pertinent information.

§98.42.Safety.

(a)

Environmental safety.

(1)

The physical plant safety requirements are designed to provide safety to the clients, participants, or adult individuals receiving day care.

(2)

The facility must conform to all applicable state laws and local ordinances pertaining to occupancy. When these laws, codes, and ordinances are more stringent than the standards in this section, the more stringent requirements govern. If state laws or local codes or ordinances conflict with the requirements of these standards, the Licensing Section will be so informed so that these conflicts may be legally resolved.

(3)

The facility must meet the provisions and requirements concerning accessibility for individuals with disabilities in the following laws and regulations: the Americans with Disabilities Act (ADA) of 1990 (Public Law 101- 336; Title 42, United States Code, Chapter 126); Title 28, Code of Federal Regulations, Part 35; Texas Civil Statutes, Article 9102; and Title 16, Texas Administrative Code, Chapter 68. Plans for new construction, substantial renovations, modifications, and alterations must be submitted to the Texas Department of Licensing and Regulation (Attn: Elimination of Architectural Barriers Program) for accessibility approval under Article 9102. At least 50% of the client restrooms must be in accordance with ADA. Exception: Facilities licensed for 45 or fewer persons may provide one unisex restroom in accordance with accessibility requirements.

(4)

The jurisdiction of the Texas Department of Human Services (DHS) extends beyond the licensed facility when the licensed area is only a part of a building or floor that is not fire-separated in accordance with the Life Safety Code, §10-7.1.2.

(b)

Life Safety Code.

(1)

The principles of the Life Safety Code, of the National Fire Protection Association (NFPA), 1988 edition, under §10-7 "Day Care Centers," and operating features under §31-3.4 "Day Care Centers," must be used in establishing life safety requirements for adult day care facilities, with the interpretation and exceptions as listed in paragraphs (2) and (3) of this subsection.

(2)

Interpretations of the Life Safety Code, 1988, §10-7, are as follows:

(A)

The principles of §10-7 apply to any size facility requiring licensing with four or more clients or participants.

(B)

The principles of §10-7.1.1.3 relating to children six years of age and over apply.

(C)

The manual fire alarm system and automatic smoke detection system must be installed in accordance with NFPA 72 series and state fire marshal licensing requirements.

(D)

All facilities must follow the Life Safety Code, 1988, §10-7, including but not limited to the following:

(i)

Where centers are located in a building containing mixed occupancies, the occupancies must be separated by one-hour fire barriers.

(ii)

Exit access corridors must be not less than six feet clear width.

(iii)

Each floor occupied by clients must have access to two remote exits in accordance with Chapter 5, Means of Egress. Doors in the means of egress must be equipped with hardware that opens with a single motion. Doors must swing in the direction of egress for occupant loads greater than 50 occupants.

(iv)

Every room or space normally subject to client occupancy, other than bathrooms or any room with attended individual clients, must have at least one outside window for emergency rescue or ventilation. Such window must be able to be opened from the inside without the use of tools and provide a clear opening of not less than 20 in. (50.8 cm.) in width, 24. in. (61 cm.) in height, and 5.7 sq. ft. (.53 sq. m.) in area. The bottom of the opening must be not more than 44 in. (112 cm.) above the floor. In rooms located greater than three stories above grade, the openable clear height, width, and area of the window may be modified to the dimensions necessary for ventilation. Exceptions are as follows:

(I)

in buildings protected throughout by an approved automatic sprinkler system in accordance with §7-7; or

(II)

where the room or space has a door leading directly to the outside of the building.

(v)

Interior finish in stairways, corridors, and lobbies must be Class A, and for all other walls and ceilings must be Class A or Class B in accordance with §6-5.

(vi)

Floor coverings within corridors and exits must be Class I or Class II in accordance with §6-5.

(vii)

A smoke detection system must be installed in accordance with §7-6 with placement of detectors in each story in front of the doors to the stairways and at not greater than 30 ft. (9.1 m.) spacing in the corridors of all floors containing the center. Detectors also must be installed in lounges, recreation areas, and sleeping rooms in the center. Maintenance and testing must be conducted semi-annually on fire alarm systems by a person licensed by the State of Texas.

(viii)

Fire department notification must be accomplished in accordance with §7-6.4, except in day-care centers with not more than 100 clients.

(3)

Exceptions to the Life Safety Code, 1988, §10-7, are as follows.

(A)

All required smoke detectors must be powered by the facility electrical system and be interconnected with the fire alarm system.

(B)

Reference to apartment buildings in §10-7.1.2 must be deleted. Any floor above or below the floor of exit discharge which is used by semiambulatory clients, or those whose disability prevents them from taking appropriate action for self-preservation in emergencies, must be provided with smoke compartmentation.

(C)

Emergency lighting is not required for means of egress if the facility operation is during daylight hours and if natural light, direct or borrowed, is provided so that the means of egress is usable in emergencies.

(D)

Special protective electrical receptacle covers are not required.

(E)

NFPA 96 publication relating to Vapor Removal Cooking Equipment must not be applicable if the facility has residential-type cooking equipment.

(F)

Public corridors must not be used for return or supply air systems.

(G)

Residential-type heating units or heating units designed for attic installations must not be considered to be units requiring furnace room construction as specified under §10-7.3.2.1.

(H)

New additions or remodeling must be as required for new construction in accordance with paragraph (4) of this subsection.

(I)

Sprinkler system for janitor's closet as specified under §10-7.2.2 are not required unless the building has a complete NFPA 13 system.

(4)

For new construction, DHS requires conformance to the following codes, except that DHS may accept other nationally recognized codes that are locally enforced.

(A)

If the municipality has a building code and a plumbing code, then those codes govern in those areas of construction. Where local codes or ordinances are applicable, the most restrictive parts concerning the same subject item apply unless otherwise determined by the authority having jurisdiction for local codes and the licensing agency.

(B)

In the absence of local municipal codes or ordinances, nationally recognized codes must be used, such as the Standard Building Code and the Standard Plumbing Code, both of which are part of the Southern Building Code, published by Congress International, Inc. These nationally recognized codes, when used, must all be publications of the same group or organization to assure the intended continuity.

(C)

Heating, ventilating, and air-conditioning (HVAC) systems must be designed and installed in accordance with NFPA 90A, relating to the Standard for the Installation of Air Conditioning and Ventilating Systems, and NFPA 90B, relating to the Standard for the Installation of Warm Air Heating and Air Conditioning Systems, as applicable, and the American Society of Heating, Ventilating, and Air Conditioning Engineers (ASHRAE), except as may be modified in this subchapter. Buildings required to meet NFPA 90A must have automatic shutdown upon initiation of the fire alarm system, in accordance with NFPA 90A, §4-3.

(D)

Electrical and illumination systems must be designed and installed in accordance with NFPA 70, relating to the National Electrical Code, and the Lighting Handbook of the Illuminating Engineering Society (IES) of North America except as may be modified in this subchapter. Minimum illumination must be 20 foot candles in the toilets, bathing, and general use areas such as living, dining, corridors, and lobbies. Minimum illumination must be 50 foot candles in the kitchen, medication or food preparation areas, and activity areas for handicrafts or reading.

(5)

An existing building either occupied as an adult day care facility at the time of initial inspection by the licensing agency, or converted to occupancy as an adult day care facility, must meet all local requirements pertaining to the building for that occupancy. The licensing agency may require the facility sponsor or licensee to submit evidence that local requirements are satisfied.

(6)

Adult day care facilities must be of recognized permanent type construction as distinguished from movable buildings or construction. Buildings must be structurally sound with regard to actual or expected dead, live, and wind loads. DHS may require submission of evidence to this effect.

(7)

Electrical and mechanical systems must be safe and in working order. DHS may require the facility sponsor or licensee to submit evidence to this effect, consisting of a report from the fire marshal or city and/or county building official having jurisdiction or a report from a registered professional engineer.

(8)

DHS will consider a written request from the facility for a waiver of the requirements which, if strictly applied, would clearly be impractical in DHS's judgment for existing buildings and structures which are converted to adult day care occupancy. Any of these modifications will be allowed only to the extent that reasonable life safety against the hazards of fire, explosion, structural, or other building failure and panic are provided and maintained.

(c)

Personal safety.

(1)

Fire safety.

(A)

Fire safety must be observed at all times.

(B)

Storage items must be neatly arranged and placed to minimize fire hazard. Gasoline, volatile materials, paint, and similar products must not be stored in the building housing clients unless approved by the local fire marshal. Accumulations of extraneous material and refuse is not permitted.

(C)

The building must be kept in good repair; electrical, heating, and cooling systems must be maintained in a safe manner. Electrical appliances, devices, and lamps must be used in a manner that prevents overloaded circuits. Any extension cords in excess of six feet must be shielded or protected.

(D)

The facility must report all fires to DHS, Licensing Section, on DHS's Fire Report for Licensed Facilities form within 15 days after the fire. The facility must immediately notify DHS, Licensing Section, at (512) 438-2630 of disasters or any fires which caused death or serious injury. A telephone report must be followed by a written report on DHS's Fire Report form.

(E)

The facility must develop and conspicuously post throughout the facility an emergency evacuation plan approved by the local fire marshal having jurisdiction and DHS.

(F)

Smoking regulations must be established and conspicuously posted in the facility. All smoking must be supervised. Ashtrays of noncombustible material and safe design must be provided.

(G)

The facility must have an emergency fire lane for access of fire apparatus if required by local authorities.

(H)

There must be at least one telephone in the facility available to either staff or clients to use in case of an emergency. Emergency telephone numbers must be posted conspicuously at or near the telephone.

(I)

An initial pressure test of facility gas lines from the meter must be provided. Additional pressure tests are required when the facility has major renovations or additions during which the gas service is interrupted. All gas heating systems must be checked for proper operation and safety prior to the heating season by someone experienced in the areas of heating and air conditioning. Any unsatisfactory conditions must be corrected promptly.

(J)

Curtains and/or draperies in public spaces and individual rooms in which smoking is allowed must be flame retardant.

(K)

Portable fire extinguishers must be provided and maintained to comply with the provisions of the National Fire Protection Association (NFPA) 10. This includes such items as type of extinguishers (A, B, or C), location and spacing, mounting heights, monthly inspections by staff, yearly inspections by a licensed agent (with any necessary servicing), and hydrostatic testing as recommended by the manufacturer.

(L)

Metal wastebaskets of substantial gauge or any U.L. or F.M. approved containers must be provided in all areas where smoking is permitted. Garbage, waste, or trash containers provided for kitchens, janitor closets, laundries, mechanical or boiler rooms, general storage, and similar places must be made of metal or any U.L. or F.M. approved material, having a close fitting cover. Disposable plastic liners may be used in these containers for sanitation.

(2)

General requirements.

(A)

All exterior site conditions must be designed, constructed, and maintained in the interest of clients' safety. Newly constructed ramps must not exceed 1:12 slope. Ramps, walks, and steps must be of slip-resistive texture and be smooth and uniform, without irregularities. Guard rails, fences, and hand rails must be provided as required.

(B)

All stairways must have substantial hand rails properly secured.

(C)

Tubs or showers for client use must have non-slip bottoms or floor surfaces, either built in or applied to the surface.

(D)

Elevators for client use must be in safe operating condition.

(E)

An adequate supply of hot water must be provided. The hot water system connected to all client-use fixtures must deliver warm water no hotter than 120 degrees Fahrenheit at the fixture. Hot water for other sanitary usages must be provided at the temperatures required for the appliance or fixture served, or for the operation involved.

(F)

There must be no occupancies or activities adversely affecting the safety of the clients in the buildings or on the premises of the facility.

(G)

There must be at least 35 square feet provided for each ambulatory client and at least 50 square feet for each semiambulatory client. This space may not include the kitchen/food service area, rest rooms, bath areas, office, corridors, stairways, storage areas, and outdoor space.

(H)

An office area must be provided in a central location to record and maintain files for each client.

(I)

An area for rest, other than the treatment and/or exam room, must be provided with a sufficient number of reclining lounge chairs or beds to accommodate the needs of clients. A room or rooms with beds must be provided for those clients who prefer privacy. Facilities licensed on or after May 1, 1999, must ensure that the room(s) with beds must provide space for a minimum 5% of the licensed capacity. The room(s) usable space must provide not less than 80 square feet per bed for one-bed room and not less than 60 square feet per bed for multiple-bed rooms. A bedroom shall be not less than eight feet in its smallest dimension, unless otherwise approved by DHS.

(J)

The facility must have at least one room available as a treatment and/or examination room for use by the nursing staff or the client's physician. The client may not be treated and/or examined in an area other than the treatment room.

(K)

The facility must have a safe, secure, and suitable outdoor recreation and/or relaxation area for clients. This area must be connected to, be a part of, be controlled by, and be directly accessible from the facility. This area must be enclosed by a wall or a fence or located in a courtyard and supervised by staff to prevent wandering and large enough to conduct outdoor activities. This area must be suitably furnished. A minimum of 20% of the required outdoor space must be shaded. The required outdoor space for facilities licensed on or after May 1, 1999 is:

(i)

400 square feet for facilities up to 59 clients;

(ii)

600 square feet for facilities up to 99 clients; and

(iii)

800 square feet for facilities with 100 or more clients.

§98.43.Sanitation.

(a)

General.

(1)

Waste water and sewage must be discharged into a state-approved municipal sewage system; any exception to an on-site sewage facility must be as approved by the Texas Natural Resource Conservation Commission or authorized agent.

(2)

The water supply must be from a system approved by the Water Utility Division, Texas Natural Resources Conservation Commission, or from a system regulated by an entity responsible for water quality in that jurisdiction as approved by the Water Utility Division, Texas Natural Resources Conservation Commission.

(3)

Waste, trash, and garbage must be disposed from the premises at regular intervals in accordance with state and local practices. Excessive accumulations are not permitted. Outside containers must have tight-fitting lids left in closed position. Containers must be maintained in a clean and serviceable condition.

(4)

The building and grounds must be kept neat and free of refuse, litter, extraneous materials, and unsightly or injurious accumulations.

(5)

The facility must make every effort possible to guard against insects, rodents, rainwater, and other conditions adversely affecting a sanitary environment or the well-being of the client.

(6)

A pest control program must be provided by qualified facility staff or by contract with a licensed pest control company. The least toxic and least flammable effective chemicals must be used. Documented evidence of routine efforts to remove rodents and insects must be maintained.

(7)

The facility must be kept free of offensive odors, accumulations of dirt, rubbish, dust, and hazards. Floors must be maintained in good condition and cleaned regularly; walls and ceilings must be structurally maintained, repaired, and repainted or cleaned as needed. Storage areas, attics, and cellars must be free of refuse and extraneous materials.

(8)

There must be complete, separate, and adequate rest room facilities for men and women. Toilets must be provided as necessary to meet the needs of the clients; however, there must be not less than one toilet and one lavatory for every 15 clients or fraction thereof. Multiple toilets must be compartmented. All toilets must be equipped with grab bars. Lavatories must be provided with hot and cold water, soap, and individual towels. A minimum of one bathing unit must be provided. Facilities licensed on or after May 1, 1999, must provide a minimum of one bathing unit, which does not interfere with the use of the restroom by other clients. Each tub or shower must be in an individual room or enclosure which provides space for the private use of the bathing fixture, for drying and dressing, and for the client and attendant.

(9)

All bathrooms, toilet rooms, and other odor-producing rooms or areas for soiled and unsanitary operations must be ventilated to the exterior for odor control; the use of windows is not permissible.

(10)

In kitchens and laundries, there must be procedures which prevent cross contamination between clean and soiled utensils and clean and soiled linens.

(b)

Kitchen.

(1)

The rules in 25 TAC 229, Subchapter K (relating to Texas Food Establishments) and local health ordinances or requirements must be observed in the storage, preparation, and distribution of food; in the cleaning of dishes, equipment, and work area; and in the storage and disposal of waste.

(2)

Facilities licensed after May 1, 1999, must provide three compartment sinks. A three compartment sink must be used if washing, rinsing, and sanitizing utensils and equipment is done manually. Sinks must be large enough to permit the complete immersion of utensils and equipment and each compartment sink must be supplied with hot and cold potable water. A two compartment sink will be acceptable where only single-service tableware is provided.

(3)

Food preparation kitchens must have separate hand washing fixtures including hot and cold water, soap, and individual towels, preferably paper towels, in accordance with 25 TAC 229, Subchapter K (relating to Texas Food Establishments).

(4)

Where kitchen provisions consist of serving kitchens only, and cooking equipment is used only to warm food, prepare hot drinks, or provide similar food service, the kitchen is not required to have separate hand-washing fixtures.

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 14, 1999.

TRD-9900230

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Proposed date of adoption: May 1, 1999

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


Subchapter D. Facility Construction Procedures

40 TAC §98.61

(Editor's note: The text of the following section proposed for repeal will not be published. The section 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 repeal is proposed under the Human Resources Code, Chapter 103, which provides the department with the authority to license adult day care facilities.

The repeal implements the Human Resources Code, Chapter 103, §§103.001-103.011.

§98.61.Construction and Initial Survey of Completed Construction.

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 14, 1999.

TRD-9900231

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Proposed date of adoption: May 1, 1999

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


Subchapter D. Licensure and Program Requirements

40 TAC §98.61, §98.62

The new sections are proposed under the Human Resources Code, Chapter 103, which provides the department with the authority to license adult day care facilities, and under the Human Resources Code, Title 2, Chapters 22 and 32, which provides the department with the authority 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 §§22.001-22.030, 32.001-32.042, and 103.001-103.011 of the Human Resources Code.

§98.61.General Requirements.

(a)

All facilities are required to meet the following:

(1)

the requirements for advance directives as outlined under subsection (b) of this section;

(2)

the Health and Safety Code, Chapter 250, concerning conducting criminal history checks;

(3)

workplace standards to comply with HIV/AIDS and related conditions in the workplace;

(4)

all relevant federal and state standards; and

(5)

all applicable provisions of the Human Resource Code, Chapter 102.

(b)

All facilities must maintain policies and procedures regarding the following rules with respect to all adult individuals receiving services provided by the facility:

(1)

all individuals must be provided with the following written information:

(A)

the individual's rights under Texas law (whether statutory or as recognized by the courts of the state) to make decisions concerning medical care, including the right to accept or refuse medical or surgical treatment and the right to formulate advance directives; and

(B)

the facility's policies respecting the implementation of these rights.

(2)

the facility must document in the individual's record whether or not the individual has executed an advance directive;

(3)

the facility must not condition the provision of care or otherwise discriminate against an individual based on whether or not the individual has executed an advance directive;

(4)

the facility must ensure compliance with the requirements of Texas law, whether statutory or as recognized by the courts of Texas, respecting advance directives;

(5)

the facility must provide, individually or with others, for education for staff and families on issues concerning advance directives in a language the client and family understands;

(6)

the facility must provide the attending physician with any information relating to a known existing Directive to Physicians and/or Living Will or Durable Power of Attorney for Health Care, and assist with coordinating physicians' orders with any client directive;

(7)

when an individual is in an incapacitated state, and therefore is unable to receive information or articulate whether he has executed an advance directive, the family, surrogate, or other concerned person must receive the information concerning advance directives. The facility must provide this information to the individual in a language he understands, if he is no longer incapacitated; and

(8)

when the client or a relative, surrogate, or other concerned or related individual presents the facility with a copy of the individual's advance directive, the facility must comply with the advance directive including recognition of a durable power of attorney for health care, to the extent allowed under state law. If no one comes forward with a previously executed advance directive and the client is incapacitated or otherwise unable to receive information or articulate whether he has executed an advance directive, the facility must note that the individual was not able to receive information and was unable to communicate whether an advance directive existed.

(c)

All facilities must:

(1)

make an oral report to the Texas Department of Human Services (DHS) at 1-800-458-9858 on learning of an alleged abuse or neglect of a client. A written investigation report must be sent to DHS no later than the fifth working day after the oral report;

(2)

maintain incident reports;

(3)

ensure the confidentiality of individual client records and other information related to clients; and

(4)

inform the client orally and in writing of his rights, responsibilities, and grievance procedures in a language he understands.

(d)

Each facility must prominently and conspicuously post for display in a public area of the facility that is readily available to clients, employees, and visitors:

(1)

the license issued under this chapter;

(2)

a sign prescribed by DHS that describes complaint procedures and specifies how complaints may be filed with DHS;

(3)

a notice in the form prescribed by DHS stating that inspection and related reports are available at the facility for public inspection and providing DHS's toll-free telephone number that may be used to obtain information concerning the facility;

(4)

a copy of the most recent inspection report relating to the facility;

(5)

a brochure or letter which outlines the facility's hours of operation, holidays, and a description of activities offered; and

(6)

emergency telephone numbers, including the abuse hotline telephone number, near all telephones.

§98.62.Program Requirements.

(a)

Staff qualifications.

(1)

Director.

(A)

The director must:

(i)

have graduated from an accredited four-year college or university and have no less than one year of experience in working with people in a human service or medically-related program, or have an associate degree or 60 semester hours from an accredited college or university with three years of experience in working with people in a human service or medically-related program; or

(ii)

be a registered nurse with one year of experience in a human service or medically related program; or

(iii)

meet the training and experience requirements for a license as a nursing facility administrator under the rules of the Texas Board of Licensure for Nursing Facility Administrators; or

(iv)

have met, on July 16, 1989, the qualifications for the position under the requirements in effect at that time and have served continuously in the capacity of director of a Texas Department of Human Services-certified facility since that date.

(B)

The activities director may fulfill the function of facility director if he meets the qualifications for facility director.

(C)

One person may not serve as facility nurse, activities director, and facility director, regardless of qualifications.

(D)

The facility must have a policy regarding the delegation of responsibility in the administrator's absence, not to exceed 10 working days.

(E)

The facility must request a waiver from Long Term Care-Regulatory (LTC-R) Regional Office for exceptional circumstances. Exceptional circumstances include, but are not limited to, hospitalization, death, etc.

(2)

Nurse. The facility nurse must be a registered nurse (RN) or a licensed vocational nurse (LVN).

(A)

The RN must have a current license from the Board of Nurse Examiners for the State of Texas and must practice in compliance with the Nurse Practice Act and rules and regulations of the Board of Nurse Examiners.

(B)

The LVN must have a current license from the Board of Vocational Nurse Examiners of Texas and must practice in compliance with the Vocational Nurse Act and rules and regulations of the Board of Vocational Nurse Examiners.

(C)

If a nurse serving as director leaves the facility to perform other duties related to the provisions of the day care program, an LVN or another RN must fulfill the duties of the facility nurse.

(D)

Facilities that receive Title XX funds are not required to have a registered nurse on duty, as long as the client receiving services has no medical needs and is able to self medicate.

(3)

Activities director.

(A)

The activities director must be a high school graduate (or equivalent) and have:

(i)

a bachelor's degree from an accredited college or university, plus one year of full-time experience in working with the elderly or people with disabilities in a human service or medically-related program; or

(ii)

60 semester hours from an accredited college or university, plus two years of full-time experience in working with the elderly or people with disabilities in a human service or medically-related program; or

(iii)

completed a state-approved activities director's course, plus two years of full-time experience in working with the elderly or people with disabilities in a human service or medically-related program.

(B)

Anyone hired prior to May 1, 1999, as an activities director with four years of full-time experience in working with elderly or people with disabilities in a human service or medically-related program, will be considered a qualified activities director.

(4)

Attendants. Attendants must be 18 years old or older and may include, but are not limited to, bus drivers, aides, cooks, janitors, porters, maids, and laundry workers.

(A)

If the facility employs a bus driver, the driver must have a current operator's license, issued by the Texas Department of Public Safety, which is appropriate for the class of vehicle used to transport clients.

(B)

If an attendant handles food in the facility, he must meet the requirements described in the Texas Department of Health rules on food service sanitation as described under 25 TAC 229, Subchapter K (relating to Texas Food Establishments).

(5)

Food service personnel. If the facility prepares meals on site, the facility must have sufficient food service personnel to prepare meals and snacks. Food service personnel must meet the requirements described in the Texas Department of Health rules on food service sanitation as described under 25 TAC 229, Subchapter K (relating to Texas Food Establishments).

(6)

Additional requirements for Day Activity and Health Services (DAHS) employees.

(A)

Housekeeper. A DAHS facility may employ a part-time or full-time housekeeper.

(B)

Driver. If a DAHS facility employs a part-time or full-time driver, the driver must:

(i)

operate the facility's vehicles in a safe manner; and

(ii)

maintain adult cardiopulmonary resuscitation (CPR) certification.

(b)

Staffing ratio. The facility must ensure that:

(1)

the ratio of direct service staff to clients is at least one to eight, which must be maintained during provision of all covered services except during facility-provided transportation;

(2)

at a minimum, one registered nurse or licensed vocational nurse must be working on site, eight hours per day. The facility may schedule nursing hours according to client needs. Sufficient licensed nursing staff must be on site to meet the nursing needs of the clients;

(3)

the facility director works a minimum of 40 hours per week performing duties relating to the provision of adult day care services; and

(4)

the activities director works 40 hours a week.

(c)

Staff health. All direct staff must be free of communicable diseases.

(d)

Staff responsibilities.

(1)

Facility director. The facility director is responsible for:

(A)

managing the adult day care program and/or the facility;

(B)

training and supervising facility staff;

(C)

monitoring the facility building and grounds to ensure compliance;

(D)

maintaining all financial and client records;

(E)

developing relationships with community groups and agencies for identification and referral of clients;

(F)

maintaining communication with the client's family members or responsible parties;

(G)

assuring the development and maintenance of the individual plan of care; and

(H)

ensuring that, if he serves as the nurse consultant during the same eight- hours-per-day period, he is fulfilling his responsibility as director.

(2)

Facility nurse. The facility nurse is responsible for:

(A)

assessing the client's nursing and medical needs;

(B)

developing a client's individual plan of care;

(C)

obtaining physician's orders for medication and treatments to be administered;

(D)

determining whether self-administered medications have been appropriately taken, applied, or used;

(E)

entering, dating, and signing monthly progress notes on medical care provided;

(F)

administering medication and treatments;

(G)

providing health education; and

(H)

maintaining medical records.

(3)

Activities director. The activities director is responsible for:

(A)

planning and directing the daily program of activities, including physical fitness exercises or other recreational activities;

(B)

recording the client's social history;

(C)

assisting the client's related support needs;

(D)

assuring that the identified related support services are included in the client's individual plan of care; and

(E)

signing and dating monthly progress notes about social and related support services activities provided.

(4)

Attendant. The attendant is responsible for:

(A)

providing personal care services (assistance with activities of daily living);

(B)

assisting the activities director with recreational activities; and

(C)

providing protective supervision (observation and monitoring).

(5)

Food service personnel. Food service personnel are responsible for:

(A)

preparing meals and snacks; and

(B)

maintaining the kitchen area and utensils in a safe and sanitary condition.

(6)

Dietitian consultant.

(A)

The facility must receive consultation at least four hours each month from a dietitian. The dietitian consultant plans and/or reviews menus and must:

(i)

prior approve and sign each snack and luncheon menu;

(ii)

review menus monthly to ensure that substitutions were appropriate; and

(iii)

develop any special diets ordered by physicians for individual clients.

(B)

The dietitian consultant is required for all facilities, even those that have their meals delivered from another facility with its own dietitian consultant. A consultant may provide consultation to several facilities as long as each facility receives at least four hours a month. The four hours cannot be "shared" by several facilities.

(C)

Facilities that contract for the preparation and delivery of meals with management companies employing their own registered dietitians are required to have the four hours of consultation from a dietitian consultant.

(7)

Registered nurse consultant. In facilities where the nurse is a licensed vocational nurse, a registered nurse consultant must provide on-site consultation four hours per week. The RN consultant must document the consultation provided. The RN consultant must provide the consultation during the time when clients are present in the facility. The RN consultant may provide the following types of assistance:

(A)

reviewing plans of care and suggesting changes, if appropriate;

(B)

assessing clients' health conditions;

(C)

consulting with the LVN in solving problems involving client care and service planning;

(D)

counseling clients on their health needs;

(E)

training, consulting, and assisting the LVN in maintaining proper medical records; and

(F)

providing in-service training for direct service staff.

(e)

Training.

(1)

Initial training.

(A)

The facility must:

(i)

provide all staff with training in the fire, disaster, and evacuation procedures within three workdays of employment. The training must be documented in the facility records.

(ii)

provide direct delivery staff a minimum of 18 hours of training during the first three months of employment. Training must be documented in the facility records. Training must include:

(I)

any nationally or locally recognized adult cardiopulmonary resuscitation (CPR) course/certification;

(II)

first aid; or

(III)

orientation to health care delivery including the following components:

(-a-)

safe body function and mechanics;

(-b-)

personal care techniques and procedures; and

(-c-)

overview of client population served at the facility; and

(IV)

identification and reporting of abuse, neglect, or exploitation.

(B)

Staff employed as substitutes on an infrequent and irregular basis are not required to have 18 hours of initial training. Substitute and consultant staff must receive a minimum of three hours of orientation. Substitutes for direct service staff used by a facility on a regular basis must meet all training requirements as specified under this subsection.

(2)

Ongoing training.

(A)

The facility must provide a minimum of three hours of ongoing training to direct service staff quarterly. The facility must ensure that direct delivery staff maintain current certification in CPR.

(B)

The facility must practice evacuation procedures with staff and clients quarterly. The evacuation results must be documented in the facility records.

(f)

Medications.

(1)

Administration.

(A)

Clients who choose not to or cannot self-administer their medications must have their medications administered by a person who holds a current license under state law which authorizes the licensee to administer medications.

(B)

All medication prescribed to clients must be dispensed through a pharmacy or by the client's treating physician or dentist.

(C)

Physician sample medications may be given to a client by the facility provided the medication has specific dosage instructions for the individual client.

(D)

Each client's medications must be listed on an individual client's medication profile record. The recorded information obtained from the prescription label must include, but is not limited to, the medication name, strength, dosage, amount received, directions for use, route of administration, prescription number, pharmacy name, and the date each medication was issued by the pharmacy.

(2)

Assistance with self administration. Assistance with self administration of client's medication regimen by licensed nursing staff may be provided to clients who are incapable of self- administering without assistance. Supervision includes, and is limited to:

(A)

reminders to take their medications at the prescribed time;

(B)

opening containers or packages and replacing lids;

(C)

pouring prescribed dosage according to medication profile record;

(D)

returning medications to the proper locked areas;

(E)

obtaining medications from a pharmacy; and

(F)

listing on an individual client's medication profile record the medication name, strength, dosage, amount received, directions for use, route of administration, prescription number, pharmacy name, and the date each medication was issued by the pharmacy.

(3)

Self-administration.

(A)

Clients who self-administer their own medications must be counseled at least once a month by licensed nursing staff to ascertain if the clients continue to be capable of self-administering their medications and/or treatments. A written record of counseling must be kept by the facility.

(B)

Clients who choose to keep their medications locked in the central medication storage area may be permitted entrance or access to the area for the purpose of self-administering their own medication and/or treatment regimen. A facility staff member must remain in or at the storage area the entire time any client is present.

(4)

General.

(A)

The facility director, the activities director, or a facility nurse must immediately report to the client's physician and responsible party any unusual reactions to medications or treatments.

(B)

When the facility supervises or administers the medications, a written record must be kept when the client does not receive or take his medications and/or treatments as prescribed. The documentation must include the date and time the dose should have been taken, and the name and strength of medication missed.

(5)

Storage.

(A)

The facility must provide a locked area for all medications. Examples of areas include, but are not limited to:

(i)

central storage area; and

(ii)

medication cart.

(B)

Each client's medication must be stored separately from other clients' medications within the storage area.

(C)

A refrigerator must have a designated and locked storage for medications requiring refrigeration. Medications requiring refrigeration must be stored in a refrigerator used only for medicine storage or in a separate, permanently attached, and locked medication storage box in a refrigerator.

(D)

Poisonous substances and medications labeled for "external use only" must be stored separately within the locked medical area.

(E)

The medication room or cabinet medication storage area must have a separate, permanently attached cabinet, box, or drawer with a lock to store drugs covered by Schedule II of the Controlled Substances Act of 1970.

(6)

Disposal.

(A)

Medications no longer being used by the client for the following reasons must be kept separate from current medications and are to be disposed of by a registered pharmacist licensed in the State of Texas:

(i)

medications discontinued by order of the physician;

(ii)

medications which remain after a client is deceased; or

(iii)

medications which have passed the expiration date.

(B)

Needles and hypodermic syringes with needles attached must be disposed as required by 25 TAC 1, Subchapter K (relating to the Definition, Treatment, and Disposal of Special Waste from Health Care Related Facilities).

(C)

Medications kept in a central storage area are released to discharged clients when a receipt has been signed by the client or responsible party.

(g)

Accident, injury, or acute illness.

(1)

The facility must stock and maintain in a single location first aid supplies to treat burns, cuts, and poisoning.

(2)

In the event of accident or injury requiring emergency medical, dental, or nursing care, or in the event of apparent death, the adult day care facility must:

(A)

make arrangements for emergency care and/or transfer to an appropriate place for treatment (including, but not limited to, physician's office, clinic, or hospital);

(B)

immediately notify the client's physician and next of kin, responsible party, or agency who placed the client in the facility; and

(C)

describe and document the accident, injury, or illness on a separate report. The report must contain a statement of final disposition and be maintained on file.

(h)

Menus.

(1)

Menus must be planned at least two weeks in advance, dated, maintained on file, and posted in the facility. Meals must be served according to approved menus.

(2)

Special diet meals ordered by the client's physician and developed by the dietician must be labeled with the client's name and type of diet.

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 14, 1999.

TRD-9900232

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Proposed date of adoption: May 1, 1999

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


Subchapter E. Inspections, Surveys, and Visits

40 TAC §§98.1-98.84

The new sections and amendments are proposed under the Human Resources Code, Chapter 103, which provides the department with the authority to license adult day care facilities, and under the Human Resources Code, Title 2, Chapters 22 and 32, which provides the department with the authority 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 and amendments implement §§22.001-22.030, 32.001-32.042, and 103.001-103.011 of the Human Resources Code.

§98.81.Procedural Requirements.

(a)

The Texas Department of Human Services (DHS) may enter the premises of a facility at reasonable times and make an inspection necessary to issue a license or renew a license. DHS [ Texas Department of Human Services (DHS) ] inspection and survey personnel will perform inspections and surveys, follow-up visits, complaint investigations, investigations of abuse or neglect, and other contact visits [ from time to time as they deem appropriate or ] as required for carrying out the responsibilities of licensing.

(b)

(No change.)

(c)

Generally, all inspections, surveys, complaint investigations, and other visits, whether routine [ routing ] or nonroutine, made for the purpose of determining the appropriateness of client [ resident ] care and day-to-day operations of a facility will be unannounced. Any exceptions must be justified.

(d)

Certain visits may be announced, including, but not limited to, [ consultation visits to determine how a physical plant may be expanded or upgraded and visits to determine the progress of physical plant construction or repairs, ] initial architectural inspections, visits to determine the progress of physical plan construction or repairs, equipment installation or repairs, [ or ] systems installation or repairs, or conditions when certain emergencies arise, such as fire, windstorm, or malfunctioning or nonfunctioning of electrical or mechanical systems.

(e)

Any person may request an inspection of a facility by notifying DHS in writing of an alleged violation of a licensing requirement. The complaint shall be as detailed as possible and signed by the complainant. DHS shall perform an on-site inspection as soon as feasible but no later than 30 days after receiving the complaint, unless after an investigation the complaint is found to be frivolous. DHS will respond to the complainant in writing.

(f)

DHS will receive and investigate anonymous complaints.

(g)

[ (e) ] The facility must make all of its books, records, and other documents maintained by or on behalf of a facility accessible to DHS upon request.

(1)

DHS is authorized to photocopy documents, photograph residents, and use any other available recording devices to preserve all relevant evidence of conditions found during an inspection, survey, or investigation that DHS reasonably believes threaten the health and safety of a client [ resident ].

(2)

Examples of records and documents which may be requested and photocopied or otherwise reproduced are client [ resident ] medical records, including nursing notes, pharmacy records, medication records, and physician's orders.

(3)

[ When the facility is requested to furnish the copies, the ] The facility may charge DHS at a [ the ] rate not to exceed the rate DHS charges [ charged ] for copies. The procedure of copying is the responsibility of the director or his designee. If copying requires that the records be removed from the facility, a representative of the facility is expected to accompany the records and assure their order and preservation.

(4)

DHS protects the copies for privacy and confidentiality in accordance with recognized standards of medical records practice, applicable state laws, and DHS policy.

§98.82.Determinations and Actions Pursuant to Inspections.

(a)-(c)

(No change.)

(d)

Violations found during complaint investigations are discussed with the facility management and a plan of correction obtained; the violations are furnished in writing to the facility, as well as any supporting narratives, but [ must not reveal ] the source of the complaint is not revealed .

(e)

A clear and concise summary in nontechnical language of each licensure inspection, inspection of care, and/or complaint investigation is provided by DHS. That summary outlines significant violations noted at the time of the visit, but does not include names of clients, [ residents, ] staff, or any other statement that would identify individual clients [ residents ] or other prohibited information under general rules of public disclosure. The summary is provided to the facility at the time the report of contact or similar document is provided.

(f)

Upon receipt of the final statement of deficiencies, the facility will have 10 calendar days to submit an acceptable plan of correction to the Long Term Care-Regulatory regional director.

§98.83.Referrals to the Attorney General.

The Texas Department of Human Services (DHS) may refer a facility to the attorney general who may petition a district court for:

(1)

a temporary restraining order to restrain a person from a violation or threatened violation of the requirements or any other law affecting clients if DHS reasonably believes that the violation or threatened violation creates an immediate threat to the health and safety of a client; and

(2)

an injunction to restrain a person from a violation or threatened violation of the requirements or any other law affecting clients if DHS reasonably believes that the violation or threatened violation creates a threat to the health and safety of a client.

§98.84.Procedures for Inspection of Public Records.

(a)

Procedures for inspection of public records will be in accordance with the Texas Government Code, Chapter 552, and as further described in this section.

(b)

The Long Term Care-Regulatory, Texas Department of Human Services (DHS), is responsible for the maintenance and release of records on licensed facilities, and other related records.

(c)

The application for inspection of public records is subject to the following criteria.

(1)

The application must be made to the Long Term Care-Regulatory, Texas Department of Human Services, Mail Code E-349, P.O. Box 149030, Austin, Texas 78714-9030.

(2)

The requester must identify himself.

(3)

The requester must give reasonable prior notice of the time for inspection and/or copying of records.

(4)

The requester must specify the records requested.

(5)

On written applications, if DHS is unable to ascertain the records being requested, DHS may return the written application to the requester for clarification.

(6)

DHS will provide the requested records as soon as possible; however, if the records are in active use, or in storage, or time is needed for proper deidentification or preparation of the records for inspection, DHS will so advise the requester and set an hour and date within a reasonable time when the records will be available.

(d)

Original records may be inspected or copied, but in no instance will original records be removed from DHS offices.

(e)

Long Term Care-Regulatory will charge for copies of records upon request.

(1)

If the requester simply wants to inspect records, the requester will specify the records to be inspected. DHS will make no charge for this service, unless the director of Long Term Care-Regulatory determines a charge is appropriate based on the nature of the request.

(2)

If the requester wants copies of a record, the requester will specify in writing the records to be copied on an appropriate DHS form, and DHS will complete the form by specifying the cost of the records which the requester must pay in advance. Checks and other instruments of payment must be made payable to the Texas Department of Human Services.

(3)

Any expenses for standard-size copies incurred in the reproduction, preparation, or retrieval of records must be borne by the requester on a cost basis in accordance with costs established by the State Purchasing and General Services Commission or DHS for office machine copies.

(4)

For documents that are mailed, DHS will charge for the postage at the time it charges for the production. All applicable sales taxes will be added to the cost of copying records.

(5)

When a request involves more than one long-term care facility, each facility will be considered a separate request.

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 14, 1999.

TRD-9900233

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Proposed date of adoption: May 1, 1999

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


Subchapter F. Abuse, Neglect, and Exploitation: Complaint and Incident Reports and Investigations

40 TAC §§98.91-98.95

The new sections are proposed under the Human Resources Code, Chapter 103, which provides the department with the authority to license adult day care facilities, and under the Human Resources Code, Title 2, Chapters 22 and 32, which provides the department with the authority 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 §§22.001-22.030, 32.001-32.042, and 103.001-103.011 of the Human Resources Code.

§98.91.Definitions of Abuse, Neglect, and Exploitation.

For purposes of this subchapter, the definitions of abuse, neglect, and exploitation are those found in Chapter 48, Human Resources Code, and §98.1 of this title (relating to Definitions).

§98.92.Abuse, Neglect, or Exploitation Reportable to the Texas Department of Human Services (DHS) by Facilities.

(a)

Any facility staff who has reasonable cause to believe that a client is in a state of abuse, neglect, or exploitation must report the abuse, neglect, or exploitation to DHS's state office at 1-800- 458-9858 and must follow the facility's internal policies regarding abuse, neglect, or exploitation.

(b)

The following information must be reported to DHS:

(1)

name, age, and address of the resident;

(2)

name and address of the person responsible for the care of the client, if available;

(3)

nature and extent of the elderly or disabled person's condition;

(4)

basis of the reporter's knowledge; and

(5)

any other relevant information.

(c)

The facility must investigate the alleged abuse, neglect, or exploitation and send a written report of the investigation to DHS's state office no later than the fifth calendar day after the oral report and be available for inspection by DHS.

§98.93.Complaint Investigation.

(a)

A complaint is any allegation received by the Texas Department of Human Services (DHS) regarding abuse, neglect, or exploitation of a client, or a violation of state standards.

(b)

DHS must give the facility notification of the complaint received and a summary of the complaint, without identifying the source of the complaint.

§98.94.Investigations of Complaints.

(a)

The Texas Department of Human Services (DHS) only investigates complaints of abuse, neglect, or exploitation when the act occurs in the facility, when the licensed facility is responsible for the supervision of the client at the time the act occurs, or when the alleged perpetrator is affiliated with the facility. Other complaints of abuse, neglect, or exploitation not meeting this criteria must be referred to the Texas Department of Protective and Regulatory Services.

(b)

Complaint investigations must include a visit to the facility and consultation with persons thought to have knowledge of the circumstances. If the facility fails to admit DHS staff for a complaint investigation, DHS will seek a probate or county court order for admission. Investigators may request of the court that a peace officer accompany them.

(c)

In cases concluded to be physical abuse, the written report of the investigation by DHS must be submitted to the appropriate law enforcement agency.

(d)

In cases concluded to be abuse, neglect, or exploitation of a resident with a guardian, the written report of the investigation by DHS must be submitted to the probate or county court which oversees the guardianship.

§98.95.Confidentiality.

All reports, records, communications, and working papers used or developed by the Texas Department of Human Services (DHS) in an investigation are confidential and may be released only as provided in this section.

(1)

The final written investigation report on cases may be furnished to the district attorney and appropriate law enforcement agencies if the investigation reveals abuse that is a criminal offense. DHS may provide to another state agency or governmental entity information that is necessary for DHS, state agency, or entity to properly execute its duties and responsibilities to provide services to the elderly or disabled.

(2)

The final written investigation report may be released to the public upon request provided the report is deidentified to remove all names and other personally identifiable data, including any information from witnesses and other person furnished to DHS as part of the investigation. No attachments to the report will be released.

(3)

The reporter and the facility will be notified of the results of DHS's investigation of a reported case of abuse, neglect, or exploitation, whether DHS concluded that abuse, neglect, or exploitation occurred or did not occur.

(4)

Upon written request of the person who is the subject of the report of abuse, neglect, or exploitation or his legal representative, DHS shall release to the person or his legal representative otherwise confidential information relating to the final report. The request must specify the information desired and be signed and dated by the individual or his legal representative. The legal representative of a deceased person may make a written request for this information. The legal representative of a deceased person must also specify the reason the information is requested. Any legal representative must include with the request sufficient documentation to establish his authority. DHS shall edit the information before release to protect the confidentiality of information related to the reporter's identify and to protect any other individual whose safety or welfare may be endangered by disclosure.

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 14, 1999.

TRD-9900234

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Proposed date of adoption: May 1, 1999

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


G. [ F. ] Enforcement [ Miscellaneous Provisions ]

40 TAC 98.102-98.104

The amendments are proposed under the Human Resources Code, Chapter 103, which provides the department with the authority to license adult day care facilities, and under the Human Resources Code, Title 2, Chapters 22 and 32, which provides the department with the authority 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 amendments implement §§22.001-22.030, 32.001-32.042, and 103.001-103.011 of the Human Resources Code.

§98.102.Nonemergency Suspension.

(a)

The Texas Department of Human Services (DHS) may suspend a facility's license when the facility's violation of the licensure rules threatens to jeopardize the health and safety of clients [ residents ].

(b)

(No change.)

(c)

The facility will be notified by certified mail of DHS's intent to suspend the license, including the facts or conduct alleged to warrant the suspension. The facility has an opportunity to show compliance with all requirements of law for the retention of the license as provided in §98.20 [ §98.105 ] of this title (relating to Informal Reconsideration). If the facility requests an informal reconsideration, DHS will give the license holder a written affirmation or reversal of the proposed action.

(d)

The facility will be notified by certified mail of DHS's suspension of the facility's license. The facility has 15 days from receipt of the certified mail notice to request a hearing in accordance with Chapter 79 of this title, Subchapter Q (relating to Formal Appeals) [ §§79.1601 - 79.1614 of this title (relating to Formal Hearings) ]. The suspension will take effect when the deadline for appeal of the suspension passes, unless the facility appeals the suspension. If the facility appeals the suspension, the status of the license holder is preserved until final disposition of the contested matter.

(e)

(No change.)

§98.103.Revocation.

(a)

[ When a serious violation occurs, such that the health and safety of clients is jeopardized, the ] The Texas Department of Human Services (DHS) may revoke a facility's [ the ] license when the license holder has violated the requirements of the Human Resources Code, Chapter 103 .

(b)-(c)

(No change.)

(d)

The facility will be notified by certified mail of DHS's intent to revoke the license, including the facts or conduct alleged to warrant the revocation. The facility has an opportunity to show compliance with all requirements of law for the retention of the license as provided in §98.20 [ §98.105 ] of this title (relating to Informal Reconsideration). If the facility requests an informal reconsideration, DHS will give the license holder a written affirmation or reversal of the proposed action.

(e)

The facility has 15 calendar days from receiving the certified mail notice of license revocation to request a hearing, in accordance with [ §98.104 of this title (relating to Administrative Hearings) and ] Chapter 79 of this title, Subchapter Q (relating to Formal Appeals) [ §§79.1601-79.1614 of this title (relating to Formal Hearings) ]. If the facility appeals the revocation, the status of the license holder is preserved until final disposition of the contested matter.

§98.104.Emergency Suspension and Closing Order.

(a)

The Texas Department of Human Services (DHS) will suspend a facility's license or order an immediate closing of all or a part of the facility if:

(1)

(No change.)

(2)

the violation creates an immediate threat to the health and safety of a client [ resident ].

(b)-(c)

(No change.)

(d)

A licensee whose facility is closed under this section is entitled to request an administrative hearing in accordance with Chapter 79 of this title, Subchapter Q (relating to Formal Appeals) [ §§79.1601 - 79.1614 of this title (relating to Formal Appeals) ], but a request for an administrative hearing does not suspend the effectiveness of the order.

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 14, 1999.

TRD-9900235

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Proposed date of adoption: May 1, 1999

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


Subchapter F. Enforcement

40 TAC §98.105

(Editor's note: The text of the following section proposed for repeal will not be published. The section 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 repeal is proposed under the Human Resources Code, Chapter 103, which provides the department with the authority to license adult day care facilities.

The repeal implements the Human Resources Code, Chapter 103, §§103.001-103.011.

§98.105.Informal Reconsideration.

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 14, 1999.

TRD-9900236

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Proposed date of adoption: May 1, 1999

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


Subchapter G. Miscellaneous Provisions

§98.122, §98.123

(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, Chapter 103, which provides the department with the authority to license adult day care facilities.

The repeals implement the Human Resources Code, Chapter 103, §§103.001-103.011.

§98.122.Required Postings.

§98.123.Procedures for Inspection of Public Records.

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 14, 1999.

TRD-9900237

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Proposed date of adoption: May 1, 1999

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


Subchapter H. Day Activity and Health Services (DAHS) Contractual Requirements

40 TAC §§98.201-98.212

The new sections are proposed under the Human Resources Code, Chapter 103, which provides the department with the authority to license adult day care facilities, and under the Human Resources Code, Title 2, Chapters 22 and 32, which provides the department with the authority 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 §§22.001-22.030, 32.001-32.042, and 103.001-103.011 of the Human Resources Code.

§98.201.Eligibility Requirements for Participation.

(a)

Eligibility. The client must be Medicaid eligible (Title XIX Day Activity and Health Services (DAHS)) or meet social services block grant income eligibility guidelines and resource limits.

(b)

Medical criteria for DAHS. To be eligible for DAHS, the applicant/client must have:

(1)

a medical diagnosis and physician's orders requiring care, monitoring, or intervention by a licensed vocational nurse or a registered nurse;

(2)

a related functional disability; and

(3)

one or more of the following personal care or restorative needs which can be stabilized, maintained, or improved by participation in DAHS:

(A)

Bathing, dressing, and grooming. The applicant/client may need help with bathing, dressing, and routine hair and skin care.

(B)

Transfer and ambulation. The applicant/client may need help with transferring from chair or commode or walking about.

(C)

Toileting. The applicant/client may need help with using a bedpan, urinal, or commode; emptying a catheter or ostomy bag; or managing incontinence of bowel or bladder. The applicant/client may require perineal care or bowel or bladder training.

(D)

Feeding. The applicant/client may need feeding (for example, gastric, ng tube, feeding pump) or help with eating.

(E)

Fluid intake. The applicant/client may need assistance in maintaining adequate fluid intake.

(F)

Nutrition. The applicant/client may need therapeutic diet or texture modification for treatment or control of an existing condition.

(G)

Medication. The applicant/client may require supervision or administration of ordered medications or injectables.

(H)

Treatments. The applicant/client may require treatments that include:

(i)

catheter care--routine or frequent care for indwelling catheter;

(ii)

weight--measurement of weight related to monitoring a specific condition;

(iii)

ostomy care--assistance or supervision of ostomy care based on individual needs;

(iv)

recording of vital signs--taking and recording of vital signs to monitor an existing condition or medications being administered;

(v)

diabetic tests--periodic testing of blood or urine for sugar/acetone content or both;

(vi)

skin care--assistance with skin care including application of lotions, observations, assessment, or treatment of skin conditions based on physician's orders for prevention and healing decubiti and chronic skill conditions; and

(vii)

dressings--dressing based on the physician's orders and the application of sterile dressings and elastic stockings and bandages.

(I)

Restorative nursing procedures. The applicant/client requires assistance with range-of-motion exercises (active or passive) or proper positioning.

(J)

Behavioral problems. The applicant/client may have behavioral problems which can be managed by facility staff.

(c)

Prior approval of DAHS services. An individual seeking initial prior approval for day activity and health services must have a physician's order for the service. The physician cannot be the facility owner or have a significant financial or contractual relationship with the facility.

§98.202.Program Overview.

(a)

A Day Activity and Health Services (DAHS) facility must:

(1)

contract with the Texas Department of Human Services (DHS) to provide day activity and health services (DAHS);

(2)

provide services at least 10 continuous hours each day, five days a week (Monday through Friday), except for published holidays;

(3)

serve eligible clients, unless a facility is at licensed capacity;

(4)

participate in the Child and Adult Care Food Program (CACFP). The facility must submit documentation of participation in the CACFP to DHS. Documentation consists of a copy of the CACFP agreement and/or a copy of the approval letter for participation in the CACFP;

(5)

advise the individual of his rights in a language he understands and provide him with a signed copy. The facility must maintain the original in the record; and

(6)

inform clients in writing about the facility's complaint procedures within 10 calendar days of the initiation of service. The facility must also date-stamp all written complaints received and maintain accessible records of the complaint and resolution. The facility must register and evaluate client complaints brought to the facility's attention within three days of receipt of complaint. All incidents must be reported to the contract manager, with a report on the resolution of the complaint, within three workdays of resolution of the complaint. The facility must investigate and respond in writing to all written complaints received from DHS staff within 14 days of receipt of the complaint.

(b)

DHS reserves the right to deny any facility a contract if it is not in the best interest of DHS.

§98.203.Written Referrals for Services.

(a)

Day activity and health services (DAHS) facilities receive written referrals from caseworkers based on the following priorities:

(1)

client's choice;

(2)

physician's choice, if stated; and

(3)

rotation of eligible providers.

(b)

When a facility receives a referral from the caseworker, the facility nurse must make every effort to request prior approval for the client within 14 days of the referral date on the Texas Department of Human Services' (DHS's) Approval for CCAD Services - Referral Response form.

(c)

If the facility cannot request prior approval within 14 days, the facility must notify the caseworker about the reason for delay. This notification must be sent on DHS's Case Information form within 14 days of the referral date.

(d)

Within the same 14 days of receipt of DHS's Approval for CCAD Services - Referral Response form from the caseworker and before requesting prior approval, the nurse must conduct a health assessment/plan of care with the client, using DHS's Client Health Assessment/Plan of Care form. If the client is unable to participate due to cognitive impairment, the client's responsible party should participate.

(e)

If the nurse cannot conduct the health assessment within 14 days of the referral date, the facility must notify the caseworker about the reason for delay on DHS's Case Information form within the 14-day period.

(f)

Within the same 14 days of receipt of DHS's Approval for CCAD Services - Referral Response form from the caseworker, the nurse must obtain a physician's order for the client by sending DHS's Physician's Order for Day Activity and Health Services form to the client's physician. The nurse sends a copy of DHS's Client Health Assessment/Plan of Care form to the physician.

(g)

If the facility cannot obtain physician's orders within 14 days of the referral date, the facility must notify the caseworker about the reason for delay. The notification must be sent on DHS's Case Information form within the 14-day period. DHS's Case Information form must include the date of the health assessment/plan of care and must be dated after the health assessment/plan of care date, if one has been conducted.

(h)

If the physician fails to date DHS's Physician's Order for Day Activity and Health Services form or if the signature date is illegible, the facility stamp-in date will be considered the date of the physician's order. The date stamp must include the day, month, year, and the name of the facility. An abbreviated name or initials are acceptable.

§98.204.Facility-Initiated Referrals.

(a)

The applicant may be admitted to a day activity and health services facility as soon as verbal physician's orders are obtained if he appears to:

(1)

be Medicaid eligible; and

(2)

meet the medical/functional need criteria based on the information collected on the Texas Department of Human Services' (DHS's) Client Health Assessment/Plan of Care form.

(b)

When a facility initiates a referral:

(1)

the facility interviews the applicant to determine whether he appears to be Medicaid eligible. The facility determines Medicaid eligibility by reviewing the information on the applicant's Medical Care Identification Card;

(2)

the nurse:

(A)

conducts a health assessment/plan of care to determine whether the applicant appears to have a medical need for the service. The nurse determines medical need by completing DHS's Client Health Assessment/Plan of Care form; and

(B)

obtains verbal or written physician orders, if the applicant appears to meet the medical/functional need criteria;

(3)

the facility verbally notifies the DHS caseworker or intake unit of the placement the day the applicant contacts the facility. The facility follows up the notification in writing within seven days using DHS's Case Information form. This verbal notification is a request for community care for aged and disabled (CCAD) services.

(c)

The facility must request written prior approval for the applicant from the regional nurse within 30 days from the date of the physician orders.

(d)

If the facility fails to submit prior approval forms or additional documentation within required time frames, or if the additional documentation is not adequate, the regional nurse cancels the facility-initiated prior approval and the facility is not reimbursed for services.

(e)

If DHS's Client Health Assessment/Plan of Care form or Physician's Order for Day Activity and Health Services form is missing, or if any of the critical omissions or errors stated in paragraphs (1)-(9) of this subsection have occurred in the required documentation, the facility cannot obtain prior approval.

(1)

The nurse fails to sign or date DHS's Client Health Assessment/Plan of Care form or omits the registered nurse/licensed vocational nurse credentials that should follow his signature.

(2)

Documentation on DHS's Client Health Assessment/Plan of Care form does not support the medical eligibility criteria specified in §98.201 of this title (relating to Eligibility Requirements for Participation).

(3)

Items A, B, in Sections II and III of DHS's Client Health Assessment/Plan of Care form are not completed or completed incorrectly and medical need cannot be determined.

(4)

DHS's Physician's Order for Day Activity and Health Services form does not include the MD or DO credential of the physician who signed the form.

(5)

DHS's Physician's Order for Day Activity and Health Services form does not include the license number of the physician who signed it.

(6)

The physician who signed the order is excluded from participation in Medicare or Medicaid.

(7)

The physician's signature is not on DHS's Physician's Order for Day Activity and Health Services form.

(8)

The physician's signature date is missing or illegible and the facility's stamped date is missing from DHS's Physician's Order for Day Activity and Health Services form.

(9)

The facility's stamped date used instead of the physician's date on DHS's Physician's Order for Day Activity and Health Services form does not include the provider agency's name, abbreviated name, or initials.

§98.205.Initiation of Services.

(a)

The facility must initiate services within seven days of the beginning date of coverage in Item 4 of the Texas Department of Human Services' (DHS's) Prior Approval/Confirmation of Services form.

(b)

If the facility does not initiate services within the seven-day period, the facility must notify the caseworker, using DHS's Case Information form, by the eighth day after the beginning date of coverage in Item 4 of DHS's Prior Approval/Confirmation of Services form. DHS's Case Information form must include the reasons for the delay and the date when services are scheduled to begin.

(c)

The facility must complete and return DHS's Approval for CCAD Services - Referral Response form, to the caseworker within 14 days from the beginning date of coverage in Item 4 of DHS's Prior Approval/Confirmation of Services form. The facility must indicate the date services were initiated, the schedule for delivering services, and the total units authorized for the client.

§98.206.Program Requirements.

The facility must provide services that include but are not limited to:

(1)

Nursing services. Nursing services must include:

(A)

assessing, observing, evaluation, and documenting a client's health condition, and instituting appropriate nursing intervention to stabilize or improve a client's condition or prevent complications;

(B)

assisting the client order, maintain, or administer prescribed medications or treatments, as indicated by physician's orders;

(C)

counseling the client on his health need and illness and involving significant others in the discussions of his immediate and long-term health goals; and

(D)

providing or supervising personal care services to enable the client to restore, maintain, or improve his ability to perform personal care tasks. For purposes of this requirement, personal care is defined as assistance in dressing, eating, grooming, bathing, toileting, transferring/ambulation, or assistance with self- administering medication.

(2)

Physical rehabilitative services. Physical rehabilitative services must include:

(A)

restorative nursing; and

(B)

group and individual exercises, including range of motion exercises.

(3)

Nutrition/food service. Nutrition/food service in DAHS facilities is provided under Chapter 12, Subchapter A of this title (relating to the Child and Adult Care Food Program (CACFP)) and must include:

(A)

one hot noon meal served between the hours of 11:00 a.m. and 1:00 p.m. The meal must:

(i)

be suitable in quantity and adequacy to attain and maintain nutritional requirements, including those of special needs clients. The CACFP staff monitor the adequacy of a meal by totaling the amount of food produced and cooked by the number of adults fed to determine if the average amount of food meet the following food components: two ounces of meat, 1/2 cup of fruit/vegetables, one cup of milk, and two servings of bread; and

(ii)

supply 1/3 of the recommended daily allowance for adults as recommended by the United States Department of Agriculture;

(B)

special diets as required by the client's plan of care;

(C)

a supplementary mid-morning and mid-afternoon snack;

(D)

dietary counseling and nutrition education for the client and his family; and

(E)

assisting the client with his meals if necessary. This includes:

(i)

food texture modification, including grinding meats and mashing vegetables for clients having trouble chewing; and

(ii)

food management, including spoon feeding, bread buttering, and milk opening for clients with hand deformities, paralysis, or hand tremors.

(4)

Other supportive services in DAHS facilities. Other supportive services must include:

(A)

community interaction, cultural enrichment, educational or recreational activities, and other social activities on site or in the community in a planned program to meet the social needs and interests of the clients;

(B)

providing at least three social activities per day; and

(C)

posting a monthly activity calendar at least one week in advance.

(5)

Transportation services in DAHS facilities.

(A)

Transportation services must include:

(i)

transportation to and from the facility; and

(ii)

transportation to and from a facility approved to provide therapies, if the client requires specialized services on days of attendance at the day activity and health services facility.

(B)

If the facility provides transportation for a client to a non- therapy medical facility, the facility can claim the time spent in transport as part of the unit of services.

(C)

If the facility does not provide transportation, the facility must coordinate transportation with other resources.

(D)

Vehicles used for transportation services must be properly operated and maintained and have proper heating and cooling systems to maintain reasonable temperature levels inside the vehicle.

§98.207.Suspension of Day Activity and Health Services.

(a)

The facility must suspend services before the end of the prior approval period if one or more of the circumstances specified in paragraphs (1)-(10) of this subsection occur:

(1)

the client leaves the state or moves outside the geographic area served by the facility;

(2)

the client dies;

(3)

the client is admitted to a hospital, nursing home, state school, or state hospital;

(4)

the client requests that services end;

(5)

the physician requests that services end;

(6)

DHS denies the client's Medicaid/Title XX eligibility;

(7)

DHS enforces sanctions against the facility by terminating the contract;

(8)

the client threatens the health and safety of himself or others;

(9)

the client is absent from the facility for 15 consecutive days;

(10)

the client becomes ineligible for Medicaid. Each month the facility must verify that a client has a current Texas Department of Human Services (DHS) Medical Care Identification Card.

(b)

No later than the first DHS workday after services are suspended, the facility must verbally notify the caseworker or staff in the caseworker's office about the reason the facility suspended services. Written notification on DHS's Case Information form must be sent to the caseworker within seven work days of the incident that was reported verbally.

§98.208.Notifications.

(a)

If a client becomes ill or injured at the facility, the director/nurse must notify a relative or other responsible person the same day of the occurrence. Clients with communicable diseases cannot attend the facility until the physician has released the client. Examples of communicable disease are lice and scabies.

(b)

No later than the first Texas Department of Human Services (DHS) workday after becoming aware of changes in the client's status or condition, the facility must verbally notify the caseworker or staff in the caseworker's office about any change that may require a change in the client's plan of care, units, or service termination. The facility must follow up this verbal notification in writing, to the caseworker, using DHS's Case Information form. Written notification must occur within seven days after verbal notification.

(c)

If a client is absent from a regularly scheduled program, facility staff must contact the client or someone knowledgeable about his condition the same day that the absence occurs. If facility staff are unable to contact the client or someone knowledgeable about his condition, staff document this in the client's record.

(d)

The facility must verbally notify DHS by the next DHS workday and in writing to within seven days of verbal notification of the following changes in facility operations:

(1)

change in operation, telephone number, and location of administrative office;

(2)

change in hours of operation; and

(3)

change in director, activities director, nurse, or membership of governing board.

§98.209.Record Maintenance.

(a)

Client information. The Day Activity and Health Services (DAHS) facility must keep medical records and all other pertinent and identifying information necessary for a complete client health/social record. The facility must maintain the client's medical records for five years after the client leaves the facility. The facility must ensure that each client's record contains at least the following information:

(1)

the Texas Department of Human Services' (DHS's) Approval for Community Care for Aged and Disabled (CCAD) Services - Referral Response form;

(2)

DHS's Client Health Assessment/Plan of Care form;

(3)

DHS's Confirmation of Services to be Delivered form;

(4)

daily record of all treatments;

(5)

significant changes in the client's condition;

(6)

summary of any hospital stays while enrolled;

(7)

significant complaints and results of investigation of complaints;

(8)

progress notes;

(9)

documentation that the client was notified of complaint procedures and client rights; and

(10)

incident reports. Incidents include falls, arguments, and allegations of abuse, neglect, or exploitation.

(b)

Financial records. The facility must maintain financial records according to recognized fiscal and accounting procedures and according to DHS procedures as stated in §69.205 of this title (relating to Contractor's Records). The facility must keep the records current and available for review at any time by authorized agents of DHS, the attorney general's Medicaid Fraud Control Unit, the Texas Department of Health, and/or the United States Department of Health and Human Services.

(c)

Personnel records. The facility must keep personnel records in a central location in the facility. Personnel records include staff qualifications, performance reports, attendance, and staff development records. The facility must maintain these documents and records according to the retention requirements. The facility must document staff coverage for days when regular staff are away from the facility on sick or vacation leave.

(d)

Attendance records. The facility must use DHS forms to maintain a daily record of attendance and transportation to and from the facility, including the time each client began receiving services and the time he left the facility's care. If transportation is provided by the facility, driver's transportation records must be used. Arrival and departure times must be documented for clients not using facility- provided transportation.

(e)

Transportation records. The facility driver must maintain accurate daily transportation and mileage records, and records of expenses for purchase of gas and oil.

§98.210.Administrative Errors and Corrections.

(a)

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

(1)

The facility enters a date of signature on the Texas Department of Human Services' (DHS's) Daily Attendance Record form that is before the date of the last day services are provided. DHS applies the error to the total number of units reimbursed after the signature date.

(2)

The facility fails to sign DHS's Daily Attendance Record form and the signature can be verified on DHS's Daily Transportation Record form. DHS applies the error to the total number of units reimbursed on the unsigned form.

(3)

The facility fails to list the client on DHS's Daily Attendance Record form, but the client was listed on DHS's Daily Transportation Record form. DHS applies the error to the total number of units reimbursed for the period the client was left off the attendance record form.

(4)

The facility completes the total units of service column and leaves the time in and time out columns blank on DHS's Daily Attendance Record form, but the time in and time out can be verified on DHS's Daily Transportation Record form. DHS applies the error to the total number of units reimbursed in which the time in time out days were left blank.

(5)

The facility leaves the days of service blank on DHS's Daily Attendance Record form, but the days of service can be verified elsewhere on the form or on DHS's Daily Transportation Record form. DHS applies the error to the total number of units reimbursed for the days left blank.

(6)

The facility fails to enter a date of signature on DHS's Daily Attendance Record form to certify total number of units provided to the client. DHS applies the error to the total number of units reimbursed on the undated form.

(7)

The facility corrects the date of signature on DHS's Daily Attendance Record form, but fails to initial the correction. DHS applies the error to the number of units reimbursed after the earliest signature date.

(8)

The facility uses a signature stamp, but fails to initial the stamped signature. DHS applies the error to the total number of units reimbursed on the signature stamped form.

(9)

The facility makes an illegible entry or illegible correction to any portion of record of time of DHS's Daily Attendance or Daily Transportation Record form. DHS applies the error to the total number of units reimbursed for the days in which entries are illegible.

(10)

The facility completes DHS's Daily Attendance or Daily Transportation Record form in pencil. DHS applies the error to the total number of units reimbursed that were completed in pencil.

(11)

The facility uses liquid paper or correction fluid to correct an entry in DHS's Daily Attendance or Daily Transportation Record form. DHS applies the error to the total number of units reimbursed that were corrected for the billing period.

(b)

In the absence of acceptable secondary documentation, financial errors include, but are not limited to, the errors specified in paragraphs (1)-(3) of this subsection.

(1)

The facility is reimbursed for services, but DHS's Daily Attendance and Daily Transportation Record form is missing for the period for which services are reimbursed. DHS applies the error to the total number of units reimbursed for the billing period.

(2)

The facility is reimbursed for units that exceed the units recorded on DHS's Daily Attendance and Daily Transportation Record form. DHS applies the error to the total number of units reimbursed in excess of the units recorded.

(3)

The facility is reimbursed for units of service and the client did not receive services or was Medicaid ineligible (not applicable to Title XX clients). DHS applies the error to the total number of units reimbursed for the days the client did not receive services or was Medicaid ineligible.

(c)

Corrections of critical omissions or errors in facility documentation must be postmarked or date stamped as received by DHS within 14 days after the regional nurse mails DHS's Notification of Critical Omissions/Errors in Required Documentation form to the facility. If the facility fails to meet this time frame;

(1)

the date of prior approval can be no earlier than the postmark or DHS-stamped date on the corrected documentation; or,

(2)

DHS may refer the client to another facility of the client's choice.

(A)

If there is space in another facility, the regional nurse notifies the caseworker by the next workday to give the client or client's family/representative the option to be referred to another facility.

(B)

The caseworker will contact the client within three workdays of being notified by the regional nurse and refers the client to another facility, if the client or the client's family/representative prefers this option.

(d)

An exception of 12% of the paid unit rate is the administrative portion applied to the unit of service.

§98.211.Billing and Payment.

(a)

The method of payment is a unit of authorized service and is defined as half a day. One unit of service constitutes three hours but less than six hours of covered services provided by the facility. Six hours or more of service constitutes two units of service. Time spent in approved transportation provided by the facility shall be counted in the unit of service.

(b)

The facility is not entitled to payment if:

(1)

the facility fails to submit prior approval forms or supporting documentation to the regional nurse within the required time frames for facility initiated referrals;

(2)

the facility did not maintain the staff-client ratio for one or more days;

(3)

the facility exceeded its license capacity; or

(4)

the facility's monthly claims do not correspond to the facility's service authorizations and DHS's Daily Attendance/Daily Transportation Record form.

§98.212.Sanctions.

(a)

A sanction may be imposed even if none of the administrative actions listed in §79.2105 of this title (relating to Grounds for Fraud Referral and Administrative Sanction) have been imposed.

(b)

The Texas Department of Human Services (DHS) can deny and recoup funds from a facility for the days it exceeded its licensed capacity. The amount denied or recouped is two units of service (regardless of the number of units actually provided) for every individual (client, applicant, private pay, etc.) that exceeded the facility license capacity.

(c)

In addition to the reasons specified in §79.2105 of this title (relating to Grounds for Fraud Referral and Administrative Sanction), DHS may take sanctions against the facility for failure to acknowledge, within the required time frame, receipt of the Day Activity and Health Services Provider Manual and revisions, contract amendments, and policy clarifications.

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 14, 1999.

TRD-9900238

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Proposed date of adoption: May 1, 1999

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


Subchapter I. Reimbursement Methodology for Day Activity and Health Services (DAHS)

§§98.6901-98.6907

The new sections are proposed under the Human Resources Code, Chapter 103, which provides the department with the authority to license adult day care facilities, and under the Human Resources Code, Title 2, Chapters 22 and 32, which provides the department with the authority 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 §§22.001-22.030, 32.001-32.042, and 103.001-103.011 of the Human Resources Code.

§98.6901.Introduction.

Day activity and health care facilities provide noninstitutional care to clients residing in the community through rehabilitative nursing and social services. The Texas Department of Human Services (DHS) reimburses Day Activity and Health Services provider agencies for the services they provide to clients.

§98.6902.Cost Reporting Procedures.

(a)

Cost reports pertaining to providers' fiscal years ending in calendar year 1994, 1995, or 1996 will be governed by the information in this section, and the information in §24.101(b) of this title (relating to General Specifications and Methodology). In addition, the Texas Department of Human Services (DHS) applies the general principles of cost determination as specified in §20.101 of this title (relating to Introduction). Cost reports pertaining to providers' fiscal years ending in calendar year 1997 and subsequent years will be governed by the information in §98.6907 of this title (relating to Reimbursement Methodology for Day Activity and Health Services: 1997 and Subsequent Cost Reports).

(b)

Provider agencies must submit financial and statistical information at least annually on cost report forms provided by DHS or on facsimiles which are formatted according to DHS specifications and are preapproved by DHS staff. Providers must complete the cost report according to the rules and specifications set forth in this section.

(1)

Cost report due date. Provider agencies must submit cost reports to DHS no later than 90 days following receipt of the cost report forms.

(2)

Extension of due date. DHS may grant extensions of due dates for good cause. A good cause is defined as one that the provider agency could not reasonably be expected to control. Provider agencies must submit requests for extensions in writing to DHS before the cost report due date. Rate Analysis Department staff respond to requests within 10 workdays of receipt.

(3)

Reporting period. The provider agency must prepare the cost report to reflect the activities of the provider agency during the previous fiscal year. Cost reports may be required for other periods at the discretion of the department. Should a provider agency terminate its contract (provider agreement) with the department, a cost report must be submitted for that period beginning with the first day not included in a previous cost reporting period and ending with the effective date of termination of its provider agreement.

(4)

Failure to file an acceptable cost report. Failure to file a cost report or cost report supplement according to all applicable rules and instructions constitutes an administrative contract violation. In the case of an administrative contract violation, procedural guidelines and informal reconsideration and/or appeal processes are specified in §20.111 of this title (relating to Administrative Contract Violations).

(5)

Accounting requirements. The provider agency must ensure that financial and statistical information submitted in cost reports is based upon the accrual method of accounting, except for governmental institutions operated on the cash method of accounting. The provider agency's treatment of any financial or statistical item must reflect the application of the generally accepted accounting principles (GAAP) approved by the American Institute of Certified Public Accountants.

(6)

Allocation method. If allocation of cost is necessary, provider agencies must use reasonable methods of allocation. DHS adjusts allocated costs if the department considers the allocation method to be unreasonable. The provider agency must retain workpapers supporting allocations.

(7)

Cost report certification. Provider agencies must certify the accuracy of cost reports submitted to DHS in the format specified by DHS. Provider agencies may be liable for civil and/or criminal penalties in the case of misrepresented or falsified information.

(8)

Cost report supplements. The department may at times require additional financial and statistical information other than the information contained in the cost report.

(9)

Reviews and field audits of cost reports. DHS performs desk reviews or field audits of cost reports of contracted providers. The frequency and nature of the field audit are determined by DHS to ensure the fiscal integrity of the program. Desk reviews and field audits will be conducted in accordance with §20.106 of this title (relating to Basic Objectives and Criteria for Audit and Desk Review of Cost Reports), and providers will be notified of the results of a desk review or a field audit in accordance with §20.107 of this title (relating to Notification of Exclusions and Adjustments). Providers may request an informal review and, if necessary, an administrative hearing to dispute an action taken by DHS under §20.110 of this title (relating to Informal Reviews and Formal Appeals).

(10)

Record keeping requirements. Provider agencies must maintain records according to the requirements stated in §69.205 of this title (relating to Contractor's Records). Provider agencies must ensure that records are accurate and sufficiently detailed to support the financial and statistical information contained in cost reports.

(11)

Failure to maintain adequate records. Failure to maintain adequate records to support the financial and statistical information reported in cost reports constitutes an administrative contract violation. In the case of an administrative contract violation, procedural guidelines and informal reconsideration and/or appeal processes are specified in §20.111 of this title (relating to Administrative Contract Violations).

§98.6903.Reimbursement Determination.

(a)

General requirements. Cost reports pertaining to providers' fiscal years ending in calendar year 1994, 1995, or 1996 will be governed by the information in this section, and the information in §24.101(b) of this title (relating to General Specifications and Methodology). In addition, the Texas Department of Human Services (DHS) applies the general principles of cost determination as specified in §20.101 of this title (relating to Introduction). Cost reports pertaining to providers' fiscal years ending in calendar year 1997 and subsequent years will be governed by the information in §98.6907 of this title (relating to Reimbursement Methodology for Day Activity and Health Services: 1997 and Subsequent Cost Reports).

(b)

Exclusion of cost reports.

(1)

Providers are responsible for reporting only allowable costs on the cost report, except where cost report instructions indicate that other costs are to be reported in specific lines or sections. Only allowable cost information is used to determine recommended reimbursement. DHS excludes from reimbursement determination any unallowable expenses included in the cost report and makes the appropriate adjustments to expenses and other information reported by providers. The purpose is to ensure that the database reflects costs and other information which are necessary for the provision of services and are consistent with federal and state regulations.

(2)

Individual cost reports may not be included in the database used for reimbursement determination if:

(A)

there is reasonable doubt as to the accuracy or allowability of a significant part of the information reported; or

(B)

an auditor determines that reported costs are not verifiable.

(3)

When material pertinent to proposed reimbursements is made available to the public, the material will include the number of cost reports eliminated from reimbursement determination for the reason stated in paragraph (2)(A) of this subsection.

(c)

Reimbursement determination. DHS determines reimbursement in the following manner.

(1)

All contracted providers must submit a cost report unless the number of days between the date the first DHS client received services and the provider's fiscal year end is 30 days or fewer. The provider may be excused from submitting a cost report if circumstances beyond the control of the provider make cost report completion impossible, such as the loss of records due to natural disasters or removal of records from the provider's custody by any governmental entity. Requests to be excused from submitting a cost report must be received by the DHS's Rate Analysis Department before the due date of the cost report.

(2)

DHS staff allocate payroll taxes and employee benefits to each salary line item on the cost report on a pro rata basis based on the portion of that salary line item to the amount of total salary expense. The employee benefits for administrative staff are allocated directly to the corresponding salaries for those positions. The allocated payroll taxes are Federal Insurance Contributions Act (FICA) or Social Security, Workers' Compensation Insurance (WCI), Federal Unemployment Tax Act (FUTA), and the Texas Unemployment Compensation Act (TUCA).

(3)

Each provider's total reported allowable costs, excluding depreciation and mortgage interest, are projected from the historical cost-reporting period to the prospective reimbursement period as described in §20.108 of this title (relating to Determination of Inflation Indices). The prospective reimbursement period is the period of time that the reimbursement is expected to be in effect.

(4)

DHS may adjust reimbursement to compensate for anticipated future changes in the program requirements in accordance with §20.109 of this title (relating to Adjusting Reimbursement When New Legislation, Regulations, or Economic Factors Affect Costs).

(5)

DHS staff combine allowable reported costs into the following six cost areas.

(A)

Salaries and benefits cost area includes the salaries, wages, payroll taxes, and benefits of Day Activity and Health Services direct service personnel.

(B)

Transportation cost area includes the rental or lease of transportation equipment and operating costs. The driver's salary is not included in this cost area.

(C)

Food and food service cost area includes the cost of meals, related supplies, dieticians, and food servers.

(D)

Building, equipment, and capital cost area includes all building operation expenses.

(E)

Utility cost area includes all water, electric, gas, and telephone expenses.

(F)

Direct programmatic expenses cost area includes the costs of medical supplies, activity expenses, and administration, including administrative staff.

(6)

Allowable costs are totaled by cost area and then divided by the total units of service for the reporting period to determine the cost per unit of service. DHS staff rank from low to high all provider agencies' projected costs per unit of service in each cost area. The median projected unit of service cost from each cost area is then determined. Those median projected unit of service costs from each cost area are totaled. That resulting total is multiplied by 1.044 and becomes the recommended reimbursement.

(d)

Authority to determine reimbursement. The authority to determine reimbursement is specified in §20.101 of this title (relating to Introduction).

§98.6904.Allowable Cost Information.

(a)

General requirements. Cost reports pertaining to providers' fiscal years ending in calendar year 1994, 1995, or 1996 will be governed by the information in this section, and the information in §24.101(b) of this title (relating to General Specifications and Methodology). In addition, the Texas Department of Human Services (DHS) applies the general principles of cost determination as specified in §20.101 of this title (relating to Introduction). Cost reports pertaining to providers' fiscal years ending in calendar year 1997 and subsequent years will be governed by the information in §98.6907 of this title (relating to Reimbursement Methodology for Day Activity and Health Services: 1997 and Subsequent Cost Reports).

(b)

Factors affecting allowable costs. To be allowable under this program, costs must be:

(1)

necessary and reasonable for the proper and efficient administration of the program to deliver services for which the department has contracted;

(2)

authorized or not prohibited under state or local laws or regulations;

(3)

consistent with any limitations or exclusions described in this section, federal or state laws or other governing limitations as to types or amounts of cost items:

(4)

consistent with policies, regulations, and procedures that apply uniformly to both the Day Activity and Health Services Program and other activities of the organization of which the provider agency is a part;

(5)

treated consistently using generally accepted accounting principles appropriate to the circumstances;

(6)

not allocable to or included as a cost of any other program in either the current or a prior period; and

(7)

the net of all applicable credits.

(c)

Definition of reasonableness. A cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by an ordinarily prudent person in the conduct of competitive business. In determining the reasonableness of a given cost, the department considers the following:

(1)

whether the cost is of a type generally recognized as ordinary and necessary for the operation of the business or the performance under the contract;

(2)

the restraints or requirements imposed by generally accepted sound business practices, arm's length bargaining, federal and state laws and regulations, and contract terms and specifications; and

(3)

the action that a prudent person would take in the circumstances, considering his responsibilities to the public, the government, his employees, clients, share-holders, or members, and the fulfillment of the purpose for which the business was organized.

§98.6905.List of Allowable Costs.

(a)

Cost reports pertaining to providers' fiscal years ending in calendar year 1994, 1995, or 1996 will be governed by the information in this section, and the information in §24.101(b) of this title (relating to General Specifications and Methodology). In addition, the Texas Department of Human Services (DHS) applies the general principles of cost determination as specified in §20.101 of this title (relating to Introduction). Cost reports pertaining to providers' fiscal years ending in calendar year 1997 and subsequent years will be governed by the information in §98.6907 of this title (relating to Reimbursement Methodology for Day Activity and Health Services: 1997 and Subsequent Cost Reports).

(b)

The following list of allowable costs is not comprehensive, but rather serves as a general guide, and serves to clarify certain key expense areas. The absence of a particular cost does not necessarily mean that it is not an allowable cost.

(1)

Compensation of Day Activity and Health Services (DAHS) employees. Only those employees who provide services directly to DAHS participants, such as the director, social service activities coordinator, registered nurse, vocational nurse, attendant, driver, and food service personnel receive compensation, which includes:

(A)

wages and salaries. This can include deferred compensation, overtime pay, incentive pay and bonuses or any other monies subject to withholding taxes and Federal Insurance Contributions Act (FICA) deductions.

(B)

payroll taxes and insurance. This includes Federal Insurance Contributions Act (FICA or social security), unemployment compensation insurance, workmen's compensation insurance.

(C)

employee benefits. This includes employer paid health and life insurance premiums, disability insurance for employees, employer contributions to employee retirement accounts, uniform/clothing allowances, and meals provided to employees as part of an employment contract.

(2)

Transportation. Expenses must be directly related to the provision of transportation services for DAHS recipients. These expenses include the rental, lease, or contract costs of transportation equipment, depreciation, and operating/maintenance costs. Mileage is allowable if there is adequate documentation of the mileage and if the expense was related to delivery of services for which the department has contracted.

(3)

Food and food services. Cost of meals and snacks must be for participants in the DAHS program only. This includes food and nonalcoholic beverages, food service supplies, and cooking utensils expenses.

(4)

Medical equipment and supplies. These are allowable costs if they are related to the services for which the department has contracted. This may include, but is not limited to, supplies and equipment considered necessary to perform client assessments, medication administration, and nursing treatment.

(5)

Building, equipment and capital expenses.

(A)

Depreciation and amortization expense. Property owned by the provider and improvements to owned, leased, or rented property valued at more than $500 at the time of purchase must be depreciated or amortized, using the straight-line method.

(i)

Buildings. Allowable depreciation is calculated by deducting the estimated salvage value from the historical cost and dividing the result by the asset's remaining years of useful life.

(ii)

Building equipment. Allowable items for depreciation include air conditioning units, trade fixtures, furnaces, chairs, tables, beds, building and grounds improvements.

(B)

Rental and lease expense. Rental and lease expense paid to a related party is limited to the lower one of these two costs: the actual cost to the related party or the actual cost if rented or purchased elsewhere. This includes buildings, building equipment, and furniture.

(C)

Interest expense.

(i)

Interest expense is allowable on loans for the acquisition of allowable items, subject to all of the requirements for allowable costs and the following:

(I)

the loan must be evidenced in writing; and

(II)

the loan must be made in the name of the provider entity as maker or comaker of the note.

(ii)

Interest expense on related-party loans is limited to the lesser of:

(I)

the cost to the provider entity, which is the cost to the related party; or

(II)

the prevailing national average prime interest rate during the year in which the loan contract was finalized, as reported by the U. S. Department of Commerce, Bureau of Economic Analysis, in the Survey of current Business and the Business conditions Digest.

(D)

Tax expense. This includes ad valorem, real and personal property taxes, motor vehicle registration fees, sales taxes, Texas corporate franchise taxes, and organization filing fees.

(E)

Insurance expense. This includes facility fire and casualty, professional liability and malpractice, and transportation equipment liability insurance.

(6)

Utilities expense. This includes electricity and natural gas, water, waste water, garbage collection, and telephone.

(7)

Materials and supplies. These include office, activities, and educational supplies.

(8)

Training expenses. These are limited to direct costs for travel, lodging, food, registration fees for personnel who provide services directly to DAHS recipients. Training must be related directly to the care of recipients in a DAHS facility.

(9)

Contract services provided by outside vendors. This includes laundry and linen service, janitorial service, plant operation and maintenance expenses, and professional services such as those of accountants and attorneys.

§98.6906.Unallowable Costs.

(a)

Cost reports pertaining to providers' fiscal years ending in calendar year 1994, 1995, or 1996 will be governed by the information in this section, and the information in §24.101(b) of this title (relating to General Specifications and Methodology). In addition, the Texas Department of Human Services (DHS) applies the general principles of cost determination as specified in §20.101 of this title (relating to Introduction). Cost reports pertaining to providers' fiscal years ending in calendar year 1997 and subsequent years will be governed by the information in §98.6907 of this title (relating to Reimbursement Methodology for Day Activity and Health Services: 1997 and Subsequent Cost Reports).

(b)

Unallowable costs are expenses incurred by a provider agency which are not directly or indirectly related to the provision of contracted services according to applicable laws, rules, and standards. A provider agency may expend funds on unallowable cost items, but those costs must not be included in the cost report and are not used in calculating a reimbursement recommendation. The following list is a general guide to the various unallowable costs frequently encountered in cost reports submitted by provider agencies and is not intended to be inclusive of all possible unallowable costs:

(1)

advertising expenses other than those for employee recruitment, yellow page listings no larger than one column width and one inch length, and advertising to meet statutory or regulatory requirements;

(2)

allowances for bad debts or other similar accounts;

(3)

business expenses not related to the provision of services for which the department has contracted;

(4)

contributions to political activities or contributions to charity;

(5)

corporate headquarters expenses that are not directly involved in providing services or supplies used by the Day Activity and Health Services agency staff in normal operations related to day activity and health services;

(6)

depreciation expenses other than those based on straight-line depreciation;

(7)

discounts for administrative reasons; courtesy, cash, trade, and quantity discounts; rebates; or other discounts granted;

(8)

dues and membership fees to organizations whose primary emphasis is not related to the services for which the department has contracted;

(9)

entertainment expenses, except for entertainment which is reported as an employee benefit;

(10)

expenses incurred for services not related to the provision of services for which the department has contracted;

(11)

expenses which are not the legal obligation of the provider agency;

(12)

expenses of donated items, including depreciation and amortization of the value of the donations;

(13)

fees and travel expenses for corporation or association board of directors;

(14)

partnership or corporation filing fees;

(15)

fines and other penalties for violation of statutes or ordinances; penalties for late payment of taxes, utilities, mortgages, loans, and other similar penalties;

(16)

franchise fees;

(17)

fund-raising and promotion expenses; public relations expenses;

(18)

expenses for life insurance premiums where the beneficiary is the provider organization unless life insurance is a requirement of a loan agreement and the loan is related to client care;

(19)

interest expenses on loans for assets not related to the delivery of services for which the department has contracted; interest expense must be reduced or offset by interest income except interest income from funded depreciation accounts or qualified pension funds;

(20)

personal compensation not related to the delivery of services for which the department has contracted;

(21)

personal expenses not related to the delivery of services for which the department has contracted;

(22)

physician's fees for completion of physician orders;

(23)

expenses for the purchase of services, facilities, or supplies from related organizations or parties if the expenses exceed the lower of the cost to the related party or organization or the price of comparable services, facilities, or supplies purchased in an arm's length transaction;

(24)

rental or lease expense on any item not related to the delivery of services for which the department has contracted;

(25)

tax expense for federal, state, or local income tax; any tax levied on assets not related to the delivery of services for which the department has contracted;

(26)

values assigned to the services of unpaid workers or volunteers;

(27)

building depreciation expenses based on less than a 30-year life;

(28)

contributions to self-insurance funds that do not represent payment on current liabilities;

(29)

expenses that cannot be adequately documented;

(30)

forms of compensation that are not clearly enumerated to dollar amount or that represent profit distributions;

(31)

insurance premiums pertaining to items of unallowable cost;

(32)

transportation expenses for vehicles which are not generally suited to functions related to the provision of services for which the department has contracted. Mileage expense may be included at a cost per mile not to exceed the current reimbursement rate set by the legislature for state employee travel; and

(33)

costs for which the provider received federal funds, other than United States Department of Agriculture (USDA) funds, which should have been offset.

§98.6907.Reimbursement Methodology for Day Activity and Health Services: 1997 and Subsequent Cost Reports.

(a)

Day Activity and Health Care Services. Day activity and health care facilities provide noninstitutional care to clients residing in the community through rehabilitative nursing and social services. The Texas Department of Human Services (DHS) reimburses Day Activity and Health Services (DAHS) provider agencies for the services they provide to clients.

(b)

General requirements. For the completion and submittal of cost reports pertaining to providers' fiscal years ending in calendar year 1997 and subsequent years, providers must apply the information in this section. DHS applies the general principles of cost determination as specified in §20.101 of this title (relating to Introduction).

(c)

Cost-reporting guidelines. Providers must follow the cost- reporting guidelines as specified in §20.105 of this title (relating to General Reporting and Documentation Requirements, Methods, and Procedures).

(d)

Exclusion of cost reports.

(1)

Providers are responsible for reporting only allowable costs on the cost report, except where cost report instructions indicate that other costs are to be reported in specific lines or sections. Only allowable cost information is used to determine recommended reimbursement. DHS excludes from reimbursement determination any unallowable expenses included in the cost report and makes the appropriate adjustments to expenses and other information reported by providers. The purpose is to ensure that the database reflects costs and other information which are necessary for the provision of services and are consistent with federal and state regulations.

(2)

Individual cost reports may not be included in the database used for reimbursement determination if:

(A)

there is reasonable doubt as to the accuracy or allowability of a significant part of the information reported; or

(B)

an auditor determines that reported costs are not verifiable.

(3)

When material pertinent to proposed reimbursements is made available to the public, the material will include the number of cost reports eliminated from reimbursement determination for the reason stated in paragraph (2)(A) of this subsection.

(e)

Review of cost reports. DHS staff perform either desk reviews or field audits of all contracted providers. The frequency and nature of the field audits are determined by DHS to ensure the fiscal integrity of the program. Desk reviews and field audits will be conducted in accordance with §20.106 of this title (relating to Basic Objectives and Criteria for Audit and Desk Review of Cost Reports), and providers will be notified of the results of a desk review or a field audit in accordance with §20.107 of this title (relating to Notification of Exclusions and Adjustments). Providers may request an informal and, if necessary, an administrative hearing to dispute an action taken by DHS under §20.110 of this title (relating to Informal Reviews and Formal Appeals).

(f)

Reimbursement determination. DHS determines reimbursement in the following manner.

(1)

All contracted providers must submit a cost report unless the number of days between the date the first DHS client received services and the provider's fiscal year end is 30 days or fewer. The provider may be excused from submitting a cost report if circumstances beyond the control of the provider make cost-report completion impossible, such as the loss of records due to natural disasters or removal of records from the provider's custody by any governmental entity. Requests to be excused from submitting a cost report must be received by the DHS's Rate Analysis Department before the due date of the cost report.

(2)

DHS staff allocate payroll taxes and employee benefits to each salary line item on the cost report on a pro rata basis based on the portion of that salary line item to the amount of total salary expense. The employee benefits for administrative staff are allocated directly to the corresponding salaries for those positions. The allocated payroll taxes are Federal Insurance Contributions Act (FICA) or Social Security, Workers' Compensation Insurance (WCI), Federal Unemployment Tax Act (FUTA), and the Texas Unemployment Compensation Act (TUCA).

(3)

DHS staff project all allowable expenses, excluding depreciation and mortgage interest, for the period from each provider's reporting period to the next ensuing reimbursement period. DHS staff determine reasonable and appropriate economic adjusters as described in §20.108 of this title (relating to Determination of Inflation Indices) to calculate the projected expenses. DHS staff also adjust reimbursement if new legislation, regulations, or economic factors affect costs as specified in §20.109 of this title (relating to Adjusting Reimbursement When New Legislation, Regulations, or Economic Factors Affect Costs).

(4)

DHS staff combine allowable reported costs into the following six cost areas:

(A)

Salaries and benefits cost area includes the salaries, wages, payroll taxes, and benefits of Day Activity and Health Services direct service personnel and drivers.

(B)

Transportation cost area includes the rental or lease of transportation equipment and operating costs. The driver's salary is not included in this cost area.

(C)

Food and food service cost area includes the cost of meals, related supplies, dieticians, and food servers.

(D)

Building, equipment, and capital cost area includes all building operation expenses.

(E)

Utility cost area includes all water, electric, gas, and telephone expenses.

(F)

Direct programmatic expenses cost area includes the costs of medical and activity supplies, and administration, including administrative staff.

(5)

Allowable costs are totaled by cost area and then divided by the total units of service for the reporting period to determine the cost per unit of service. DHS staff rank from low to high all provider agencies' projected costs per unit of service in each cost area. The median projected unit of service cost from each cost area is then determined. Those median projected unit of service costs from each cost area are totaled. That resulting total is multiplied by 1.044 and becomes the recommended reimbursement.

(6)

The reimbursement determination authority is specified in §20.101 of this title (relating to Introduction).

(g)

Allowable and unallowable costs. Providers must follow the guide- lines specified in §20.102 of this title (relating to General Principles of Allowable and Unallowable Costs) in determining whether a cost is allowable or unallowable. Providers must follow the guide- lines for allowable and unallowable costs specified in §20.103 of this title (relating to Specifications for Allowable and Unallowable Costs).

(h)

DAHS-specific allowable costs. Allowable costs specific to the DAHS program are:

(1)

certain medical equipment and supplies, if they are related to the services for which DHS has contracted. This may include, but is not limited to, supplies and equipment considered necessary to perform client assessments, medication administration, and nursing treatment.

(2)

transportation costs if they are related to the services for which DHS has contracted. This includes the costs of garaging a vehicle that is primarily used to transport clients to and from the DAHS center. The vehicle may be garaged off-site of the center for security reasons or for route efficiency management. In these cases of off-site vehicle garaging, a mileage log is not required if the vehicle is not used for personal use and is used solely (100%) for the delivery of DAHS services.

(i)

DAHS-specific unallowable costs. Unallowable costs specific to the DAHS program are:

(1)

physician's fees for completion of physician orders; and

(2)

costs for which the provider received federal funds which should have been offset as specified in §20.103(b)(15)(B) of this title (relating to Specification for Allowable and Unallowable Costs).

(j)

Reporting revenue. Revenue must be reported on the cost report according to §20.104 of this title (relating to Revenue).

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 14, 1999.

TRD-9900239

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Proposed date of adoption: May 1, 1999

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


Part II. Texas Rehabilitation Commission

Chapter 114. Transition Planning Program

40 TAC §§114.1-114.3

The Texas Rehabilitation Commission (TRC) proposes new §§114.1-114.3, concerning the Transition Planning Program. The new sections are being proposed to provide information concerning assistance to school district and Education Service Center personnel planning effectively with students who have disabilities and would benefit from referral to TRC programs.

Charles E. Harrison, Jr., Deputy Commissioner for Financial Services, 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.

Mr. Harrison 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 provided information concerning assistance to school district and Education Service Center personnel planning effectively with students who have disabilities and would benefit from referral to TRC programs. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the sections as proposed.

Comments on the proposal may be submitted to Roger Darley, Assistant General Counsel, Texas Rehabilitation Commission, 4900 North Lamar Boulevard, Suite 7300, Austin, Texas 78751.

The new sections are proposed under the Texas Human Resources Code, Title 7, Chapter 111, §111.018 and §111.023, which provides the Texas Rehabilitation Commission with the authority to promulgate rules consistent with Title 7, Texas Human Resources Code.

No other statute, article, or code is affected by this proposal.

§114.1.Purpose.

(a)

The purpose of the Texas Rehabilitation Commission (TRC) Transition Planning program is to provide assistance to school district and Education Service Center personnel to plan effectively with students who have disabilities who would benefit from referral to TRC programs.

(b)

The planning, administrative, and staff training costs of this program are state funded.

§114.2.Planning Services.

(a)

Regional and statewide Transition Specialists, knowledgeable of Texas Rehabilitation Commission (TRC) programs assist school district and Education Service Center personnel through planning and training on eligibility criteria, services, and the specific outcomes of the various TRC programs.

(b)

A TRC counselor is assigned to each school district and actively seeks and identifies referrals of students with disabilities.

(c)

TRC counselors plan with eligible students before they exit secondary education.

(d)

TRC counselors determine eligibility for, and provide services in, Vocational Rehabilitation, as well as the other TRC programs.

(e)

The role of the TRC counselor is primarily one of planning for the student's need for TRC services.

§114.3.Interagency Coordination.

Texas Rehabilitation Commission (TRC) participates in cooperative Transition planning and training activities with the following agencies listed in paragraphs (1)-(6) of this section:

(1)

Texas Commission for the Blind (TCB);

(2)

Texas Education Agency (TEA);

(3)

Texas Workforce Commission (TWC);

(4)

Texas Department of Human Services (TDHS);

(5)

Texas Department Mental Health and Mental Retardation (TDMHMR); and

(6)

Texas Protective and Regulatory Services (TPRS).

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 15, 1999.

TRD-9900265

Charles Schiesser

Chief of Staff

Texas Rehabilitation Commission

Earliest possible date of adoption: February 28, 1999

For further information, please call: (512) 424-4050