TITLE administration

Part XIII. Texas Incentive and Productivity Commission

Chapter 273. State Employee Incentive Program

1 TAC §273.1, §273.9

The Texas Incentive and Productivity Commission proposes amendments to §273.1 and §273.9 concerning employee incentive program administration. The proposed amendments to the rules are being made to create a single employee incentive program and to recognize and reward all aspects of employee involvement, including efforts for which quantifiable savings cannot be determined. The amended rules will also effect the Commission's membership and current methods of finance. Restructuring, required by changes enacted by the 1999 legislature will allow participating agencies to retain the majority of any realized savings, and allow TIPC to focus on administering and promoting participation in its programs.

Ed Bloom, Executive Director, has determined for the first five years that the rules are in effect there will be no fiscal implications for state or local government as a result of enforcing or administrating the rules.

Ed Bloom has also determined that for the first five-years the rules will be in effect, the public benefit will be monetary savings, increased revenue, and improved services as a result of the amendment to the rules. There will be no anticipated costs to persons who are required to comply with the amendments as proposed. There will be no adverse economic effect on small businesses as compared to the effect on large businesses.

Comments on the proposed amendments may be submitted to Ed Bloom, Executive Director, Texas Incentive and Productivity Commission, P.O. Box 12482, Austin, Texas, 78711; or via e-mail at ed.bloom@license.state.tx.

The Commission proposes to adopt these rule amendments pursuant to Texas Government Code, §2108.004 which authorizes the Commission to adopt rules.

The rule amendments to §273.1, Definitions, affect code provisions newly enacted in the 1999 legislature in Senate Bill 355, that added Texas Government Code, §2108.0235 which provides for recognition awards, §2108.0236 which provides for bonuses for group suggestions, §2108.027 which concerns multiple and joint suggestions, and §2108.037 which permits agencies to retain the amount of actual or projected savings attributable to implement suggestions.

The rule amendments to §273.9 affect Texas Government Code, §2108.024 regarding participant eligibility requirements; §2108.026 regarding suggestion eligibility requirements; code provisions newly enacted in the 1999 legislature in Senate Bill 355, that added §2108.0235 which provides for recognition awards; §2108.0236 which provides for bonuses for group suggestions; §2108.027 which concerns multiple and joint suggestions; and §2108.037 which permits agencies to retain the amount of actual or projected savings attributable to implement suggestions.

§273.1.Definitions for the State Employee Incentive Program.

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

(1)-(15)

(No change.)

(16)

Joint suggestion--A suggestion submitted by two or three employees.

(17)

[ (16) ] Net cash award--A monetary amount resulting after necessary taxes are deducted from the award.

(18)

[ (17) ] Originating agency--The agency of the employee who submits a suggestion.

(19)

[ (18) ] Program--The State Employee Incentive Program.

(20)

Recognition award--A $50 award for approved suggestions not eligible for a bonus.

(21)

[ (19) ] [ SEIP ] Savings Measurement Account (SMA) [ (SSMA) ]--An account in appropriation (95752) into which cash, in an amount equal to the projected savings/revenue resulting from approved employee suggestions, is transferred from the agency's other appropriations.

(22)

[ (20) ] State agency or agency--A department, commission, board, office, or other agency in the executive or judicial branch of government that is created under the constitution or a statute of this state. This definition includes institutions of higher education.

(23)

[ (21) ] State employee--A state agency employee.

(24)

State employee group--A group of four or more state employees employed by the same state agency.

(25)

[ (22) ] Target agency or affected agency--The agency which is the object of an employee suggestion.

(26)

[ (23) ] Transfer--The process by which the amount of net savings/revenue is allocated by an agency in accordance with the Act.

(27)

[ (24) ] Verification--The process of determining the amount of net savings or net revenue attributable to an employee suggestion. The commission, with assistance from the participating agency, the Comptroller of Public Accounts, the state auditor, or other state agencies, conducts the verification process.

§273.9.Eligibility.

(a)

Employee eligibility. Each state employee is eligible to participate in the State Employee Incentive Program (program) except an employee:

(1)-(6)

(No change.)

(7)

who is an employee of the commission.

(b)

(No change.)

(c)

Suggestion eligibility. A suggestion is ineligible for consideration under this Program if it:

(1)-(6)

(No change.)

(7)

proposes an idea that involves delayed hiring of employees by the agency.

(d)-(f)

(No change.)

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 July 19, 1999.

TRD-9904326

Ed Bloom

Executive Director

Texas Incentive and Productivity Commission

Earliest possible date of adoption: August 29, 1999

For further information, please call: (512) 475-2393


Chapter 275. Productivity Bonus Program

1 TAC §§275.1, 275.3, 275.5-275.9, 275.11, 275.13, 275.15-275.17, 275.19, 275.21

(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 Incentive and Productivity Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Texas Incentive and Productivity Commission proposes the repeal of Chapter 275, §§275.1, 275.3, 275.5-275.9, 275.11, 275.13, 275.15-275.17, 275.19, and 275.21, which implement the Productivity Bonus Program.

In compliance with Senate Bill 355, §14(c), which continues the effect of the repealed statutory provisions for limited purposes, the provisions of the repealed rules also will continue effect as those rules prior to their repeal, for purposes of awarding bonuses for which application is made in accordance with §2108.103 on or before August 1, 1999.

Ed Bloom, Executive Director, has determined that for the first five-year period the proposed repeals will be in effect, there will be no fiscal implications for state or local government as a result of administering or enforcing the repeals. There is not anticipated impact on local or state employment as a result of implementing the repeals.

Ed Bloom has also determined that for the first five-year period the proposed repeals will be in effect, the public benefit anticipated as a result of the repeal is the removal of obsolete rules which will provide space for replacement rules and the overall improvement in accessibility and clarity of the remaining rules. There will be no anticipated costs to persons who are required to comply with the repeals as proposed. There will be no adverse economic effect on small businesses as compared to the effect on large businesses.

Comments on the repealed rules may be submitted to Ed Bloom, Executive Director, Texas Incentive and Productivity Commission, P.O. Box 12482, Austin, Texas, 78711; or via email at ed.bloom@license.state.tx.us.

The Commission proposes to repeal these rules pursuant to Texas Government Code §2108.004 which authorizes the Commission to repeal rules. The rules are being repealed to comply with the passage of 1999 legislation, Senate Bill 355, which abolished Texas Government Code, Chapter 2108, Subchapter C, which created and governed the Productivity Bonus Program.

There were no other statutes, codes, or rules affected by the repeal of these rules.

§275.1.Definitions for the Productivity Bonus Program.

§275.3.Submission of Productivity Plans.

§275.5.Approval by Commission.

§275.6.Establishment of a Productivity Savings Measurement Account.

§275.7.Plan Revisions.

§275.8.Agency Responsibility to Provide Information.

§275.9.Application.

§275.11.Qualifications for Award.

§275.13.Savings Certification.

§275.15.Application Review.

§275.16.Transfer of Savings.

§275.17.Awards to Employees.

§275.19.Awards to Agencies/Divisions.

§275.21.Remainder of Savings.

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 July 19, 1999.

TRD-9904327

Ed Bloom

Executive Director

Texas Incentive and Productivity Commission

Earliest possible date of adoption: August 29, 1999

For further information, please call: (512) 475-2393


Part XV. Texas Health and Human Services

Chapter 355. Medicaid Reimbursement Rates

Subchapter J. Purchased Health Services

4. Hospital Services

1 TAC §355.8061

The Health and Human Services Commission (HHSC) proposes an amendment to §355.8061 of 1 TAC Chapter 355, Medicaid Reimbursement Rates, Subchapter J, Purchased Health Services, Division 4, Hospital Services. Section 355.8061 is being amended to increase reimbursement for outpatient hospital services to 80.3% of allowable cost. The increase is the result of additional funds appropriated by the Texas Legislature.

Don Green, chief financial officer, has determined that for each year of the first five years the proposed amendment is in effect enforcing or administering the amendment will result in additional costs to the state. The additional costs are $4,500,000 for Fiscal Year 2000, $4,500,000 for Fiscal Year 2001, $4,500,000 for Fiscal Year 2002, $4,500,000 for Fiscal Year 2003, and $4,500,000 for Fiscal Year 2004. The amendment does not have foreseeable implications relating to cost or revenues of local governments.

Mr. Green has also determined that for each year of the first five years the proposed amendment is in effect the public benefit expected as a result of the adoption of the amendment is compliance with legislative appropriations. It is anticipated that there would be no economic cost to persons required to comply with the proposed amendment.

It is anticipated that the proposed amendment will not affect a local economy.

It is anticipated that the proposed amendment will not have an adverse economic effect on small businesses.

Comments on the proposal may be submitted to Joe Branton, Policy Specialist, Medicaid Reimbursement Division, Texas Health and Human Services Commission, P.O. Box 13247, Austin, Texas 78711-3247, within 30 days of publication of this issue of the Texas Register . To comply with federal regulations, a copy of the proposal is being sent to each Texas Department of Human Services (DHS) office where it will be available for public review upon request.

A public hearing will be held at 11:00 a.m., Central Time, on Tuesday, August 10, 1999, in room 3501 of the Brown-Heatly State Office Building, 4900 N. Lamar Blvd. Austin, Texas, to accept comments on the proposal.

The amendment is proposed under the Texas Government Code, §531.033, which provides the commissioner of HHSC with broad rulemaking authority; the Texas Human Resources Code, §32.021, and the Texas Government Code, §531.021(a), which provide HHSC with the authority to administer the federal medical assistance (Medicaid ) program in Texas; and the Texas Government Code, §531.021(b), which provides HHSC with the authority to adopt rules governing the determination of Medicaid reimbursements.

This section affects Government Code § 531.021(b), which provides HHSC with the authority to adopt rules governing the determination of Medicaid reimbursements.

§355.8061. Payment for Hospital Services.

(a)

The Department of Health (department) or its designated agent shall reimburse hospitals approved for participation in the Texas Medical Assistance Program for covered Title XIX hospital services provided to eligible Medicaid recipients. The Texas Title XIX State Plan for Medical Assistance provides for reimbursement of covered hospital services to be determined as specified in paragraphs (1)-(3) of this subsection.

(1)

(No change.)

(2)

The amount payable for outpatient hospital services shall be determined under similar methods and procedures used in the Social Security Act, Title XVIII, as amended, effective October 1, 1982, by Public Law 97-248, except as may be otherwise specified by the Health and Human Services Commission [ department ]. Medicaid reimbursement for outpatient hospital services shall be at 77.6% of allowable cost. For the 2000-2001 biennium, reimbursement for outpatient hospital services shall be at 80.3% of allowable cost. Reimbursement for outpatient hospital surgery is limited to the lesser of the amount reimbursed to ambulatory surgical centers (ASCs) for similar services, the hospital's actual charge, the hospital's customary charge, or the allowable cost determined by the department or its designee.

(3)

(No change.)

(b)-(d)

(No change.)

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 July 14, 1999.

TRD-9904247

Marina S. Henderson

Executive Deputy Commissioner

Health and Human Services

Earliest possible date of adoption: August 29, 1999

For further information, please call: (512) 424-6576


5. General Administration

1 TAC §355.8085

The Health and Human Services Commission (HHSC) proposes an amendment to §355.8085, of 1 TAC Chapter 355, Medicaid Reimbursement Rates, Subchapter J, Purchased Health Services, Division 5, General Administration. Section 355.8085 is being amended to specify that reimbursement to physicians and certain other Medicaid providers may be increased by a percentage approved by HHSC. The amendment is necessary to increase reimbursement as a result of the appropriation of additional funds by the Texas Legislature.

Don Green, chief financial officer, has determined that for each year of the first five years the proposed amendment is in effect enforcing or administering the amendment will result in additional costs to the state. The additional costs are $10,500,000 for Fiscal Year 2000, $10,500,000 for Fiscal Year 2001, $10,500,000 for Fiscal Year 2002, $10,500,000 for Fiscal Year 2003, and $10,500,000 for Fiscal Year 2004. The amendment does not have foreseeable implications relating to cost or revenues of local governments.

Mr. Green has also determined that for each year of the first five years the proposed amendment is in effect the public benefit expected as a result of the adoption of the amendment is compliance with legislative appropriations. It is anticipated that there would be no economic cost to persons required to comply with the proposed amendment.

It is anticipated that the proposed amendment will not affect a local economy.

It is anticipated that the proposed amendment will not have an adverse economic effect on small businesses.

Comments on the proposal may be submitted to Joe Branton, Policy Specialist, Medicaid Reimbursement Division, Texas Health and Human Services Commission, P.O. Box 13247, Austin, Texas 78711-3247 within 30 days of publication in this issue of the Texas Register . To comply with federal regulations, a copy of the proposal is being sent to each Texas Department of Human Services (DHS) office where it will be available for public review upon request.

A public hearing will be held at 9:00 a.m., Central Time, on Tuesday, August 10, 1999, in room 3501 of the Brown-Heatly State Office Building, 4900 North Lamar Blvd. Austin, Texas, to accept comments on the proposal.

The amendment is proposed under the Texas Government Code, §531.033, which provides the commissioner of HHSC with broad rulemaking authority; the Texas Human Resources Code, §32.021, and the Texas Government Code, §531.021(a), which provide HHSC with the authority to administer the federal medical assistance (Medicaid ) program in Texas; and the Texas Government Code, §531.021(b), which provides HHSC with the authority to adopt rules governing the determination of Medicaid reimbursements.

This section affects Government Code §531.021(b), which provides HHSC with the authority to adopt rules governing the determination of Medicaid reimbursements.

§355.8085. Texas Medicaid Reimbursement Methodology (TMRM).

(a)

Reimbursement for physicians and certain other practitioners.

(1)

(No change.)

(2)

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

(A)-(C)

(No change.)

(D)

Conversion factor--The dollar amount by which the sum of the three cost component RVUs is multiplied in order to obtain a reimbursement fee for each individual service. The initial value of the conversion factor is $26.873 for fiscal years 1992 and 1993. If funding is available, the conversion factor will be updated based on the adjustments described in subparagraph (E) of this paragraph or such other percentage approved by the Health and Human Services Commission (HHSC) at the beginning of each state fiscal year biennium. The department may, with the approval of HHSC [ at its discretion ], develop and apply multiple conversion factors for various classes of service such as obstetrics, pediatrics, general surgeries, and/or primary care services.

(E)-(F)

(No change.)

(3)

(No change.)

(b)-(c)

(No change.)

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 July 14, 1999.

TRD-9904248

Marina S. Henderson

Executive Deputy Commissioner

Health and Human Services

Earliest possible date of adoption: August 29, 1999

For further information, please call: (512) 424-6576