TITLE social-services-and-assistance

Part II. Texas Rehabilitation Commission

Chapter 104. Informal Appeals, Formal Appeals, and Mediation by Applicants/Clients of Determinations by Agency Personnel that Affect the Provision of Vocational Rehabilitation Services [ Informal and Formal Appeals by Applicants/Clients of Decisions by a Rehabilitation Counselor or Agency Official ]

40 TAC §§104.1-104.8

The Texas Rehabilitation Commission (TRC) proposes amendments to §§104.1-104.8, concerning informal appeals, formal appeals, and mediation by applicants/clients of determinations by agency personnel that affect the provision of vocational rehabilitation services.

The sections are being amended to conform the rules to the 1998 amendments to the Rehabilitation Act of 1973, 29 U.S.C. §§701 et. seq.

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 conformity to the 1998 amendments to the Rehabilitation Act of 1973, 29 U.S.C. §§701 et seq. 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 amendments 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.

§104.1. Purpose and Scope.

(a)

Purpose. The purpose of these rules is to provide the Texas Rehabilitation Commission with a system for the institution, conduct, and determination of "informal" and "formal appeals" and "mediation" as those terms are defined herein. These rules shall be liberally construed in accordance with the purpose for which they were adopted. These rules inform all applicants and persons served by TRC of their due process right to appeal when they are dissatisfied with any determination made by a rehabilitation counselor or agency official regarding the furnishing or denial of services.

(b)

Statutory Authority. These rules are created pursuant to the Rehabilitation Act of 1973, as amended, 29 United States Code Annotated (USCA) §§701 et seq. and Department of Education Regulations at 34 Code of Federal Regulations (CFR), Part 361 [ §361.48 ]. Federal laws and regulations prevail over state laws and regulations. The Administrative Procedure Act, Texas Government Code Annotated, §§2001.001 et seq. does not apply to client administrative hearings which are conducted pursuant to federal law.

(c)

Scope.

(1)

This chapter applies to client (applicant) appeals, mediations, and hearings [ appeals and hearings ] before the Texas Rehabilitation Commission.

(2)

These rules shall be construed to insure fair and expeditious determinations.

(3)

These rules supplement the procedures required by law.

§104.2. Definitions.

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

(1)

Act--The Rehabilitation Act of 1973 as amended, 29 United States Code §701 et seq.

(2)

Appellant--An individual who has filed a petition for administrative hearing.

(3)

Applicant--An individual who has applied for services under the Act, but for whom an eligibility determination has not been made. [ As used in these rules, unless specifically denoted, the terms "client" and "applicant" are synonymous. ]

(4)

Authorized representative--An attorney authorized to practice law in the State of Texas and/or a person designated by the applicant or client to represent them.

(5)

Client--An individual who has been determined to be eligible for services by the commission pursuant to the Act and commission rules. As used in these rules, unless specifically denoted, the terms "client" and "applicant" are synonymous.

(6)

Client Assistance Program (CAP)--The program created by the Act which provides assistance in informing and advising clients and applicants of all available benefits under the Act. CAP provides assistance and advocacy in pursuing legal, administrative, or other appropriate remedies to ensure protection of the client's rights under the Act if requested by the client or the client's authorized representative.

(7)

Commission--The Texas Rehabilitation Commission (TRC), its officers and agents.

[ Commissioner's Office for Administrative Hearings--

An office of the Texas Rehabilitation Commission which provides, among other functions, administrative support to the impartial hearing officer during the formal appeal process and is the point of contact for client's questions about the administrative hearings process. ]

(8)

Commissioner [ Director of state unit/commissioner ]--The commissioner of the Texas Rehabilitation Commission.

[ Discovery--

The process of gathering all relevant information necessary to render a fair and unbiased decision. ]

(9)

Formal appeal--The timely filing of a Petition for Administrative Hearing due to a client's continued dissatisfaction with a decision of the Commission regarding the furnishing or denial of services.

(10)

Hearing--A due process formal appeal conducted under these rules by an impartial hearing officer regarding allegations set forth in the client's Petition for Administrative Hearing regarding the furnishing or denial of services. This term includes prehearing conferences.

(11)

Hearing completion date--The date set by the impartial hearing officer which closes the period during which the parties may submit further evidence into the record or the date the impartial hearing officer receives the hearing transcript, whichever is later.

(12)

Impartial hearing officer (IHO)--Individual who is selected on a random basis and is appointed by the commissioner to hear a formal appeal pursuant to these rules. The IHO is selected from a pool of qualified persons identified jointly by TRC and by members of the Rehabilitation Council of Texas [ TRAC ].

(13)

Informal appeal or review--A communication or series of communications between a client and a Commission official which seeks to resolve the client's dissatisfaction with any determination made by a vocational rehabilitation counselor or commission official concerning the furnishing or denial of services.

(14)

Mediation--A voluntary process by which applicants and eligible individuals who have requested appeals may attempt resolution of disputes with TRC involving determinations affecting the provision of vocational rehabilitation services through the use of a trained mediator.

(15)

Office for Administrative Hearings and Subrogation--An office of the Texas Rehabilitation Commission which provides, among other functions, administrative support to the impartial hearing officer during the formal appeal process and is the point of contact for client's questions about the administrative hearings process.

(16)

Party--An individual or agency named or admitted to participate in a formal appeal before the commission.

(17)

Record--The official record of a formal appeal includes all of the following: pleadings; motions; intermediate rulings; orders; evidence received or considered; statements of matters officially noticed; questions and offers of proof; objections and rulings on objections; the IHO decision; any other decision, opinion, or report by the IHO [ or Commissioner ]; and all Commission memoranda or data, including client files, submitted to or considered by the IHO [ or the Commissioner ]. The record is maintained by the [ Commissioner's ] Office for Administrative Hearings and Subrogation .

(18)

Regional program director--Person who reviews applicant and client appeals at the TRC Regional Office level. The person holding this position in each region is also referred to as the operations director for programs.

(19)

Respondent--The Texas Rehabilitation Commission (TRC).

(20)

Rule--Any written commission statement of general applicability that implements, interprets, or prescribes law or policy or describes the procedure or practice requirements of the commission. The term includes the amendment or repeal of a prior rule, but does not include statements concerning only the internal management or organization of the commission and not affecting private rights or procedures. The term does not include certain proceedings excluded by the Act.

(21)

Standard of review-- The criteria for a court to remand or overturn a final decision of the Commission. In any such action the court will receive the records relating to the hearing, will hear additional evidence at the request of a party to the action; and basing the decision of the court on the preponderance of the evidence, will grant such relief as the court determines to be appropriate. [ The criteria for the Travis County District Court to remand or overturn a final decision of the Commissioner. The standard of review is by substantial evidence limited to the administrative record. ]

(22)

State plan--The commission is required by the Act to submit to the Department of Education a state plan covering a three-year period which describes the state's vocational rehabilitation and independent living programs and the plans and policies to be followed in carrying out those programs.

(23)

Rehabilitation Council of Texas [ Texas Rehabilitation Commission Advisory Council (TRAC) ]--The council created [ by Human Resources Code, Title 7, §111.016 ] in accordance with United States Code, Title 29, Section 725 [ the federal Rehabilitation Act amendments of 1992, Public Law 102-569 ].

§104.3. General Provisions.

(a)

General. The formal appeal and mediation process commences with the filing of a Petition for Administrative Hearing with the Office for Administrative Hearings and Subrogation. Appeals of determinations made by personnel of the commission that affect the provision of vocational rehabilitation services to applicants or eligible individuals may be made concerning:

(1)

applicants for vocational rehabilitation services; and

(2)

clients.

(b)

[ (a) ] Jurisdiction.

(1)

The Impartial Hearing Officer acquires jurisdiction over a case after a client files a Petition for Administrative Hearing and the IHO is appointed pursuant to these rules.

(2)

A Petition for Administrative Hearing shall be considered filed on the date the Petition is received and date-stamped by the [ Commissioner's ] Office for Administrative Hearings and Subrogation.

(3)

The IHO's authority is limited to a review of a client's dissatisfaction with the furnishing or denial of services by personnel of the Commission [ a rehabilitation counselor or agency official ]. The IHO does not have authority to:

(A)

change or alter [ TRC ] rules, policies, or procedures of the Commission;

(B)

hear alleged violations of the Americans with Disabilities Act, §504 of the Act, or other federal laws; or

(C)

hear or decide class actions.

(c)

[ (b) ] Conduct and Decorum. Appropriate conduct and decorum shall be maintained and enforced by the IHO. Every party, witness, attorney, or other representative shall participate in all proceedings with proper dignity, courtesy, and respect for the Commission, the IHO, and all other parties. Attorneys and other representatives or parties shall observe and practice a high standard of ethical behavior.

(d)

[ (c) ] Computation of Time.

(1)

Unless otherwise required by law in computing any period of time prescribed or allowed by these rules, the date of the act, event, or default after which the designated period of time begins to run is not to be included. The last day of the period so computed is to be included, unless such day is a Saturday, Sunday, or legal holiday, in which event the period runs until the end of the next day which is neither a Saturday, Sunday, nor legal holiday. Unless specifically stated otherwise, "days" as used in these policies refer to calendar days.

(2)

Unless otherwise provided by statute, the time for filing any pleading may be extended by order of the IHO at the request of any party upon written motion duly filed with the [ Commissioner's ] Office for Administrative Hearings and Subrogation prior to the expiration of the applicable period of time for the filing of same. Said motion shall include a showing that there is good cause for such extension of time and that the need therefor is not caused by neglect, indifference, or lack of diligence of the movant. A copy of any such motion shall be served upon all other parties of record to the proceeding contemporaneously with the filing thereof. Any party may file written pleadings contesting a motion to extend which shall be served upon all other parties contemporaneously with the filing thereof.

(3)

The date upon which a pleading or motion is filed is the date on which it is received and date-stamped by the [ Commissioner's ] Office for Administrative Hearings and Subrogation .

[ (4)

Unless specifically stated otherwise, "days" as used in these rules means calendar days. ]

(e)

[ (d) ] Appearances and right to representation. Any party may appear on his/her own behalf or may be represented by an attorney at law in good standing with the State Bar of Texas or by an authorized representative. The IHO may require any person appearing in a representative capacity to provide such evidence of his authority as the IHO may deem necessary.

[ (e)

Notice of right to formal appeal.]

[ (1)

Subject to the provisions of 34 Code of Federal Regulation §361.48, the commission is responsible for providing notice to all parties as required therein and by other applicable law.]

(f)

Notification.

(1)

An applicant or an eligible individual or, as appropriate, the applicant's representative or individual's representative, shall be notified of the right to obtain review of determinations described in subsection (a) of this section in an impartial due process hearing under subsection (h) of this section, and of the right to pursue mediation with respect to the determinations under §104.5(c) of this title (relating to Formal Appeal and Mediation), and of the availability of assistance from the client assistance program. Such notification shall be provided in writing at the time an individual applies for vocational rehabilitation services, and at the time the individualized plan for employment for the individual is developed, and upon reduction, suspension, or cessation of vocational rehabilitation services for the individual.

(2)

The IHO shall issue notice of the date, time, and location for the hearing.

(g)

Evidence and representation. An applicant or an eligible individual, or, as appropriate, the applicant's representative or individual's representative, will be provided with an opportunity to submit at the mediation session or hearing evidence and information to support the position of the applicant or eligible individual, and may be represented in the mediation session or hearing by a person selected by the applicant or eligible individual.

(h)

Hearings.

(1)

Hearing officer. A due process hearing shall be conducted by an impartial hearing officer who shall issue a decision based on the provisions of the approved state plan, the Rehabilitation Act if 1973, as amended (including regulations implementing the Act), and state regulations and policies that are consistent with the Rehabilitation Act and its implementing regulations. The impartial hearing officer shall provide the decision in writing to the applicant or eligible individual, or, as appropriate, the applicant's representative or individual's representative, and to the commission.

(2)

List. The commission will maintain a list of qualified impartial hearing officers who are knowledgeable in laws (including regulations) relating to the provision of vocational rehabilitation services under the Rehabilitation Act of 1973, as amended, from which hearing officers will be selected. For the purposes of maintaining such list, impartial hearing officers shall be identified jointly by the Commission, and by members of the Rehabilitation Council of Texas.

(3)

Selection. An impartial hearing officer shall be selected to hear a particular case relating to a determination on a random basis.

(i)

[ (f) ] Confidentiality. All personal information regarding applicants or clients in the possession of the commission must be used only for purposes directly connected with the administration of the Act. Information may not be shared with advisory or other bodies which do not have official responsibility for administration of the Act.

(j)

[ (g) ] Testimony under oath or affirmation. In any hearing, the IHO shall administer an oath or affirmation before permitting testimony from any witness.

(k)

[ (h) ] Class actions. Class actions are not permitted under these rules.

(l)

[ (i) ] Reasonable accommodation. The commission shall provide reasonable accommodation to the client or other individuals with disabilities, upon request, for purposes of the appeal process as required by the Americans with Disabilities Act of 1990, 42 United States Code §12101 et seq. and the Act, §504.

(m)

[ (j) ] Stay of official acts or services. A request for an informal or formal appeal does not of itself stay an official act of or the provision of services by the commission unless the official act or services are stayed by controlling law.

(n)

[ (k) ] Limitations on number of witnesses. The IHO has the right in any proceeding under these rules to limit the number of witnesses whose testimony will be repetitious and to set time limits in order to exclude irrelevant, immaterial, or unduly repetitious testimony, so long as all viewpoints are given a reasonable opportunity to be heard.

(o)

[ (l) ] Mileage and Witness fees.

(1)

An individual who is not an employee of TRC and who is subpoenaed or otherwise compelled to attend any hearing or proceeding to give testimony or to produce documents is entitled to receive:

(A)

mileage, in the same amount per mile as the mileage travel allowance for state employees, for traveling to and returning from the place of the hearing or the place where the deposition is taken, if the place is more than 25 miles from the individual's place of residence; and

(B)

a fee of not less than $10 a day for each day or part of a day the individual is required to be present or a fee equal to the per diem and travel allowances of a state employee, if an overnight stay is required.

(2)

Mileage and fees to which a witness is entitled under this rule shall be paid by the party at whose request the individual appears or at whose request the deposition is taken.

[ (m)

Continuation of services. Pursuant to the Act, pending a final decision by the IHO or the resolution of an informal or formal appeal, the commission shall not institute a suspension, reduction, or termination of services being provided under the individualized written rehabilitation program (IWRP), unless such services have been obtained through misrepresentation, fraud, collusion, or criminal conduct on the part of the client. In the case of a client who has completed a term of training or similar services prior to the appeal, and the next term has not yet begun (prior to the current appeal), it is understood that such training or services are not "being provided."]

(p)

Impact on provision of services. Unless the individual with a disability so requests, or, in an appropriate case, the individual's representative so requests, pending a decision by a mediator or impartial hearing officer under subsection (h)(1) of this section or §104.6 of this title (relating to Motion for Reconsideration), the commission will not institute a suspension, reduction, or termination of services being provided for the individual, including evaluation and assessment services and plan development, unless such services have been obtained through misrepresentation, fraud, collusion, or criminal conduct on the part of the individual, or the individual's representative. In the case of a client who has completed a term of training or similar services prior to the appeal, and the next term has not yet begun (prior to the current appeal), it is understood that such training or services are not "being provided."

§104.4. Informal Appeal.

(a)

A client or applicant may seek an informal appeal of his/her dissatisfaction with a decision. An informal appeal consists of meetings, properly documented, with the VRC, area manager, and the regional program director, in that order.

(b)

During the informal appeal process, the Commission shall maintain a file of all documentation, decisions, and actions throughout the process. The parties shall jointly agree on dates, times, and locations of meetings.

(c)

An informal appeal may not be used as a means to delay a formal hearing or mediation.

(d)

A client/applicant may file a petition for a formal administrative hearing at any time during the informal appeals process.

[ (a)

A client may seek a timely review of his/her dissatisfaction with a decision by the rehabilitation counselor, the area manager, and the regional program director, in that order.]

[ (b)

An informal appeal may not be used as a means to delay a formal appeal before an impartial hearing officer unless the parties jointly agree to a delay. The rehabilitation counselor shall immediately inform the client of his/her right to petition for a formal appeal in lieu of initiating the informal appeal process. During the informal appeal process, the commission shall maintain a file of all documentation, decisions, and actions throughout the process. The parties shall jointly agree on the applicable dates, times, and locations for the meetings.]

§104.5. Formal Appeal and Mediation .

(a)

The formal appeal process commences with the filing of a Petition for Administrative Hearing with the [ Commissioner's ] Office for Administrative Hearings and Subrogation . [ The hearing must be held within 45 days of an individual's request for review, unless informal resolution is achieved prior to the 45th day, or the parties agree to a specific extension of time. ]

(b)

Role of [ Commissioner's ] Office for Administrative Hearings and Subrogation . Upon receipt of the Petition for Administrative Hearing, the [ Commissioner's ] Office for Administrative Hearings and Subrogation shall:

(1)

acknowledge receipt of the petition for administrative hearing (via certified mail, return receipt requested) and advise the appellant of the availability of the Client Assistance Program, including the address and telephone number [ within five days of receipt of the petition for administrative hearing ];

(2)

date-stamp the Petition and record a docket control number for the appeal;

(3)

select the impartial hearings officer (IHO), who is appointed by the commissioner, on a random basis from a pool of qualified persons identified jointly by TRC and the Rehabilitation Council of Texas [ TRAC ] in accordance with the Rehabilitation Act [ within ten days of receipt of the Petition for Administrative Hearing and immediately ] and forward a copy of the Petition for Administrative Hearing to the IHO;

(4)

forward a copy of the Petition for Administrative Hearing to the Office of the General Counsel, Deputy Commissioner for Rehabilitation Services and Commission Representative immediately upon receipt;

(5)

provide administrative support to the IHO:

(A)

serve as the custodian of records for all documents, motions, and pleadings directed to the IHO;

(B)

coordinate and schedule all dates, meetings, hearings;

(C)

make all necessary arrangements for the formal appeal:

(i)

schedule and set up the hearing location;

(ii)

if required, retain the services of a certified shorthand reporter to prepare a transcript of the proceedings;

(iii)

provide any requested reasonable accommodations;

(6)

compile and maintain the official record of the appeal;

(7)

accompany IHO to prehearing conference, administrative hearing and provide necessary assistance during the proceedings;

[ (8)

send copies of witness lists to all parties to the hearing and to witnesses who are TRC employees.]

(c)

Mediation. Applicants and eligible individuals who have requested appeals may agree with the Commission to attempt resolution of disputes involving determinations described in §104.3(a) of this title (relating to General Provisions) through mediation. The mediation process must be voluntary on the part of the parties. It may not be used to deny or delay the right of an individual to a hearing under §104.3(h) of this title, or to deny any other right afforded by law, and it will be conducted by a qualified and impartial mediator who is trained in effective mediation techniques. The Commission will bear the cost of the mediation process. Clients/Applicants are responsible for the cost of any attorney or other person representing him/her.

(1)

List of mediators. The Commission will maintain a list of individuals who are qualified mediators and knowledgeable in laws (including regulations) relating to the provision of vocational rehabilitation services under the Rehabilitation Act of 1973, as amended, from which mediators will be selected.

(2)

Scheduling. Each session in the mediation process shall be scheduled in a timely manner and shall be held in a location that is convenient to the parties to the dispute.

(3)

Agreement. An agreement reached by the parties to the dispute in the mediation process shall be set forth in a written mediation agreement and signed by both parties or their representatives, and the mediator.

(4)

Confidentiality. Discussions that occur during the mediation process shall be confidential and may not be used as evidence in any subsequent due process hearing or civil proceeding. The parties to the mediation process may be required to sign a confidentiality pledge prior to the commencement of such process.

(d)

[ (c) ] Impartial Hearing Officer.

(1)

Qualifications. The IHO:

(A)

cannot be an employee of a public agency;

(B)

cannot be a member of the Rehabilitation Council of Texas [ Texas Rehabilitation Advisory Council ] (the Act, § 105, as amended in 1992); and

(C)

must have knowledge of the delivery of vocational rehabilitation services, the state plan under the Act, §101, the federal regulations, and commission rules governing the provision of such services and training with respect to the performance of official duties;

(D)

must not have been involved in previous decisions regarding the vocational rehabilitation of the applicant or client;

(E)

must have no personal or financial interest that would conflict with his/her objectivity; [ and ]

(F)

must have [ , in addition to all of the above, ] successfully completed impartial hearings training presented by the commission ; and [ . ]

(G)

must not be a client of TRC.

(2)

Powers and Duties.

(A)

The IHO shall have the authority and duty to:

(i)

conduct a full, fair, and impartial hearing;

(ii)

take action to avoid unnecessary delay in the disposition of the proceeding;

(iii)

maintain order; and

(iv)

permit deviations from the rules and procedures prescribed in subsections (f) [ (e) ]-(j) of this section, except subsection (j)(4)(F) of this section , in the interest of justice or to expedite the proceedings. If prior to adjournment of a hearing either party disagrees with a ruling or otherwise so requests, the IHO shall include in the written record a justification, and an explanation of how the decision is in the interest of justice and/or reasonably necessary to expedite the proceedings. Actions taken under this subsection shall be limited to procedural matters, and no party shall lose any substantive rights.

(B)

The IHO shall have the power to regulate the course of the hearing and the conduct of the parties and authorized representative(s), including the power to:

(i)

administer oaths;

(ii)

take testimony;

(iii)

rule on questions of evidence;

(iv)

rule on discovery issues;

(v)

issue orders relating to hearing and prehearing matters, including orders granting permission to subpoena witnesses and imposing sanctions regarding discovery;

(vi)

limit irrelevant, immaterial, and unduly repetitious testimony and reasonably limit the time for presentations;

(vii)

admit or deny party status;

(viii)

grant continuance(s);

(ix)

require parties to submit legal memoranda, proposed findings of fact, and conclusions of law;

(x)

make findings of fact and conclusions of law; and

(xi)

issue decisions.

(C)

An IHO shall disqualify him/herself if the IHO has directly or indirectly had prior involvement with any issues that are the basis for the hearing , or if the IHO has a personal relationship or familial relationship with any party or witness .

(D)

Substitution of impartial hearing officers.

(i)

If for any reason an IHO is unable to continue presiding over a pending hearing or issue a decision after the conclusion of the hearing, another IHO may be designated as a substitute in accordance with applicable law and these rules.

(ii)

The substitute IHO may use the existing record and need not repeat previous proceedings, but may conduct further proceedings as necessary and proper to conclude the hearing and render a decision.

(e)

[ (d) ] Ex Parte Communications. Unless required for the disposition of ex parte matters authorized by law, the IHO may not communicate, directly or indirectly, in connection with any issue of fact or law with the commissioner or any party or a party's representative, except upon notice to all parties.

(f)

[ (e) ] Prehearing Procedures.

(1)

Prehearing Conference(s).

(A)

When appropriate, the IHO may hold a prehearing conference to resolve matters preliminary to the hearing.

(B)

A prehearing conference may be convened to address preliminary matters including the following listed in clauses (i)-(xv) of this subparagraph :

(i)

issuance of subpoenas;

(ii)

factual and legal issues;

(iii)

stipulations;

(iv)

clarification of the issues at the discretion of the IHO;

(v)

requests for official notice;

(vi)

identification and exchange of documentary evidence;

(vii)

admissibility of evidence;

(viii)

identification and qualification of witnesses;

(ix)

motions;

(x)

discovery disputes;

(xi)

order of presentation;

(xii)

scheduling;

(xiii)

settlement conferences; [ and ]

(xiv)

mediation; and

(xv)

[ (xiv) ] such other matters as will promote the orderly and prompt resolution of the issues and conduct of the hearing.

(C)

Among other matters, as stated in subsection (b) of this section, an IHO may order:

(i)

that the parties jointly discuss the prospects of settlement or stipulations or other dispute resolution methods approved herein and be prepared to report thereon at the prehearing conference;

(ii)

that the parties file and be prepared to argue preliminary motions at the prehearing conference;

(iii)

that the parties be prepared to specify the controlling factual and legal issues in the case at the prehearing conference; and

(iv)

that the parties make a concise statement of undisputed facts and issues at the prehearing conference.

(D)

All or part of the prehearing conference may [ will ] be recorded or transcribed.

(E)

The IHO may, after acquiring jurisdiction, issue an order requiring a prehearing "statement of the case." The parties shall [ , within 14 days of service, ] file a statement specifying the party's present position on any or all of the following listed in clauses (i)-(v) of this subparagraph as required by the IHO. Parties shall supplement this statement on a timely basis. The statement may [ shall ] include:

(i)

the disputed issues or matters to be resolved;

(ii)

a brief statement of the facts or arguments supporting the party's position in each disputed issue or matter;

(iii)

a list of facts or exhibits to which a party will stipulate; and

(iv)

a list of the witnesses which each party intends to call at the hearing, including a designation of each as either a fact or expert witness, and a brief statement summarizing the testimony and/or opinions (experts) of each witness . [ ; and ]

[ (v)

a description of the discovery, if any, the party intends to engage in and an estimate of the time needed to complete discovery.]

(2)

Prehearing Orders.

(A)

The IHO may issue a prehearing order reciting the actions taken or to be taken with regard to any matter addressed at the prehearing conference.

(B)

The prehearing order shall be a part of the hearing record.

(C)

If a prehearing conference is not held, the IHO may issue a prehearing order to regulate the conduct of the proceedings of the formal hearing.

[ (3)

Settlement Conferences.]

[ (A)

Upon request of any party and approval by the IHO, or at the IHO's discretion, a conference outside the presence of the IHO may be held to address settlement.]

[ (B)

Settlement discussions shall not be made a part of the case record.]

[ (C)

This section is not in derogation of the agency's and the parties' ability to settle cases independently of the impartial hearing officer.]

(3)

[ (4) ] Stipulations.

(A)

The parties, by stipulation, may agree to any substantive or procedural matter.

(B)

A stipulation shall be filed in writing or entered on the record at the prehearing (or hearing).

(C)

The IHO may require additional development of stipulated matters.

(g)

[ (f) ] Pleadings.

(1)

In a formal appeal all pleadings, including the Petition for Administrative Hearing, shall contain:

(A)

the name of the party making the pleading;

(B)

the names of all other known parties;

(C)

a concise statement of the facts alleged and relied upon;

(D)

a statement of the type of relief, action, or order desired;

(E)

any other matter required by law;

(F)

a certificate of service, as required by these rules; and

(G)

the signature of the party making the pleading or the party's authorized representative.

(2)

Any pleading filed pursuant to a formal appeal may be amended up to 14 days prior to the hearing. Amendments filed after that time will be accepted at the discretion of the IHO.

(3)

Any pleading may adopt and incorporate, by specific reference thereto, any part of any document or entry in the official files and records of the Commission. All pleadings relating to any matter pending before the Commission shall be filed with the IHO through the [ Commissioner's ] Office for Administrative Hearings and Subrogation .

(4)

All pleadings shall be typed or printed on 8 1/2 by 11 inch paper with a one-inch margin. Reproductions are acceptable, provided all copies are clear and permanently legible.

(5)

Pleadings shall contain the name, address, and telephone number of the party filing the document or the name, telephone number, and business address of the authorized representative.

(6)

The party or the party's designated representative filing the pleading shall include a signed certification that a true and correct copy of the pleading has been served on every other party.

[ (g)

Discovery.]

[ (1)

Forms and scope of discovery.]

[ (A)

Discovery is the process by which a party may, prior to the hearing, obtain evidence which is relevant to the subject matter of the hearing.]

[ (B)

The parties are entitled to conduct the following forms of discovery:]

[ (i)

oral or written depositions of any party or non-party;]

[ (ii)

requests for admission;]

[ (iii)

interrogatories; and]

[ (iv)

requests for production or examination.]

[ (C)

Scope of discovery. Parties may obtain discovery regarding any matter which is relevant to the subject matter of the hearing or which is reasonably calculated to lead to the discovery of evidence which would be admissible at the hearing.]

[ (D)

All discovery requests should be directed to the party from which discovery is being sought.]

[ (E)

Copies of discovery requests and documents filed in response thereto shall be served on all parties and should not be filed with the IHO unless directed by the IHO to do so or when in support of objections, motions to compel, motions for protective orders, or motions to quash.]

[ (F)

All parties will be afforded a reasonable opportunity to file objections and motions to compel with the IHO regarding any and all discovery requests.]

[ (2)

Depositions.]

[ (A)

After the filing of a Petition for Administrative Hearing (TRC-505) any party may take the testimony of any person, including a party, upon oral or written examination.]

[ (B)

Reasonable notice must be served in writing by the party or the party's authorized representative proposing to take a deposition upon oral examination to every other party or the party's authorized representative. The notice shall state the name of the deponent, the time and the place of the taking of the deposition, and if the production of documents or tangible things is desired, a designation of the items to be produced by the deponent which describes each item with reasonable particularity. The notice shall also state the identity of persons who will attend other than the witness, parties, authorized representatives and their employees, and the officer taking the deposition. If any party intends to have any other persons attend, that party must give reasonable notice to all parties of the identity of such other persons.]

[ (C)

When the deponent is a party, notice proposing to take a deposition served upon the party or the party's authorized representative shall have the same effect as a subpoena served on the party. If the deponent is an agent or employee who is subject to the control of a party, notice which is served upon the party or the party's authorized representative shall have the same effect as a subpoena served on the deponent. A party or a party's agents, employees, or persons subject to that party's control may be compelled to produce designated documents or tangible things if the notice sets forth the individual items or categories of items to be produced with reasonable particularity.]

[ (D)

After the filing of a petition for administrative hearing (TRC-505), any party may take the testimony of any person, including a party, by deposition upon written questions. A party proposing to take depositions upon written questions shall serve them upon every other party or the party's authorized representative with written notice 10 days before the deposition is to be taken. The notice shall state the name and address of the deponent, the hearing in which the deposition is to be used, the name or descriptive title and address of the officer before whom the deposition is to be taken, and if the production of documents or tangible things is desired, a designation of the items to be produced by the deponent which describes each item with reasonable particularity.]

[ (E)

Any party may subpoena an individual who is not a party in order to take the testimony of that person upon oral or written examination. The procedure for issuance of subpoenas is set out at paragraph (6) of this subsection.]

[ (F)

Upon proof of service of a notice to take a deposition, written or oral, any officer authorized to take depositions and any certified shorthand reporter shall immediately issue and cause to be served upon the witness a subpoena directing him to appear before the officer at the time and place stated in the notice for the purpose of giving a deposition.]

[ (G)

A witness may be compelled by subpoena duces tecum to produce books, papers, documents, or tangible things within his care, custody or control. The subpoena duces tecum shall direct with particularity the witness to produce, at such time and place designated, documents or tangible things which constitute or contain evidence or information relating to any of the matters within the scope of the hearing.]

[ (3)

Requests for Admission.]

[ (A)

At any time after filing of the petition for administrative hearing, a party may serve upon any other party a written request for the admission, for purposes of the pending hearing only, of the truth of any matters within the scope of these rules set forth in the request that relate to statements or opinions of fact or of the application of law to fact, including the genuineness of any documents described in the request.]

[ (B)

Copies of documents shall be served with the request unless they have been or are otherwise furnished or made available for inspection and copying. Whenever a party is represented by an authorized representative, service of a request for admissions shall be made on the party's representative. A true copy of a request for admission or of a written answer or objection, together with proof of the service thereof, shall be filed promptly with the Commissioner's Office for Administrative Hearings.]

[ (C)

Each matter to which an admission is requested shall be separately set forth. The matter is admitted without necessity of an order unless, within 30 days after service of the request, or within such time as the IHO may allow, or as otherwise agreed by the parties, the party to whom the request is directed serves upon the party requesting the admission a written answer or objection addressed to the matter, signed by the party or the party's representative. If objection is made, the reason therefor shall be stated.]

[ (D)

The answer shall specifically deny the matter or set forth in detail the reasons that the answering party cannot truthfully admit or deny the matter. A denial shall fairly meet the substance of the requested admission, and when good faith requires that a party qualify his answer or deny only a part of the matter of which an admission is requested, he shall specify so much of it as is true and qualify or deny the remainder. An answering party may not give lack of information or knowledge as a reason for failure to admit or deny unless he states that he has made reasonable inquiry and that the information known or easily obtainable by him is insufficient to enable him to admit or deny.]

[ (E)

The IHO may permit withdrawal or amendment of responses and deemed admissions upon a showing of good cause for such withdrawal or amendment if the IHO finds that the parties relying upon the responses and deemed admissions will not be unduly prejudiced and that the presentation of the merits of the action will be subserved thereby. Any admission made by a party under this rule is for the purpose of the pending action only and neither constitutes an admission by the party for any other purpose nor may be used against that party in any other proceeding.]

[ (4)

Interrogatories.]

[ (A)

Any party may serve upon any other party written interrogatories to be answered by the party served, or the party's authorized representative.]

[ (B)

When a party has designated an authorized representative, service of interrogatories and answers to interrogatories shall be made on the representative.]

[ (C)

Interrogatories may relate to any matters which are relevant to the subject matter of the hearing, but the answers, subject to any objections as to relevance, may be used only against the party answering the interrogatories.]

[ (D)

The party upon whom the interrogatories have been served shall serve answers on the party submitting the interrogatories within the time specified by the party serving the interrogatories, which specified time shall not be less than 30 days after the service of the interrogatories. The IHO, on motion and notice for good cause shown, may enlarge or shorten the time for serving answers or objections.]

[ (E)

The number of questions including subsections in a set of interrogatories shall be limited so as not to require more than 30 answers. No more than two sets of interrogatories may be served by a party to any other party except by agreement or as permitted by the IHO.]

[ (5)

Requests for production or examination.]

[ (A)

Any party may serve on any other party a request to produce and permit the requesting party or the party's authorized representative to inspect or copy any designated documents which are relevant to the subject matter of the hearing and which are in the possession, custody, or control of the party to whom the request is directed.]

[ (B)

The request shall set forth the items to be inspected either by individual item or by category, and describe each item and category with reasonable particularity. The request shall specify a reasonable time, place, and manner for making the inspection and performing the related acts.]

[ (C)

The party upon whom the request is served shall serve a written response which shall state, with respect to each item or category of items, that inspection or other requested action will be permitted as requested, and he shall thereafter comply with the request, except only to the extent that he makes objections in writing to particular items, or categories of items, stating specific reasons why such discovery should not be allowed.]

[ (D)

A party who produces documents for inspection shall produce them as they are kept in the usual course of business, or shall organize and label them to correspond with the categories in the request.]

[ (E)

The request shall be served upon every party to the action. The party upon whom the request is served shall serve a written response and objections, if any, within 30 days after the service of the request. The time for making a response may be shortened or lengthened by the IHO upon a showing of good cause.]

[ (6)

Subpoenas.]

[ (A)

Any party may subpoena a witness for the purposes of taking their deposition by oral or written examination or to compel testimony at the hearing.]

[ (B)

A party may not obtain a subpoena without having petitioned the IHO for an order granting the issuance of a subpoena upon a showing of good cause as to the need for the subpoena.]

[ (C)

Upon a finding that good cause exists for the issuing of a subpoena, the IHO may enter an order granting the issuance of a subpoena.]

[ (D)

The party seeking the subpoena must then present the IHO order granting the issuance of a subpoena to a certified shorthand reporter or any officer authorized to issue subpoenas who shall immediately issue and cause to be served upon the witness a subpoena directing him to appear at the time and place stated in the order.]

[ (E)

All costs associated with the issuing of a subpoena are to be borne by the requesting party.]

[ (F)

The form of the subpoena and the service thereof shall be in conformance with the rules applicable to subpoenas in Texas Courts.]

[ (G)

If the witness fails to comply with the subpoena, the party requesting the subpoena may bring suit to enforce the subpoena in a district court either in Travis County or in the county in which the subject hearing will be held.]

[ (7)

Compelling Discovery.]

[ (A)

In the event of a discovery dispute, a party, upon reasonable notice to all other parties, may file a motion to compel or file a motion for protective order with the IHO. Such motions shall contain a sworn certificate by the party filing the motion that efforts to resolve the discovery dispute without the necessity of IHO intervention were attempted and failed.]

[ (B)

At the IHO's discretion, an order compelling discovery or a protective order may be issued to protect the movant from undue burden, unnecessary expense, harassment or annoyance, or invasion of personal, constitutional, or property rights. The IHO's authority extends to but is not limited by any of the following:]

[ (i)

ordering that requested discovery be answered or produced;]

[ (ii)

ordering that the requested discovery not be sought in whole or in part, that the extent or subject matter of discovery be limited, or that it not be undertaken at the time or place specified;]

[ (iii)

ordering that the discovery be undertaken only by such method, upon such terms and conditions, or at the time and place directed by the IHO; and]

[ (iv)

ordering that, for good cause shown, results of discovery be sealed or otherwise adequately protected, that its distribution be limited, or that its disclosure be restricted.]

[ (C)

Sanctions.]

[ (i)

When a party does not comply with the IHO order compelling discovery, the requesting party may, upon reasonable notice to all other parties, apply to the IHO for sanctions. A party may not request sanctions without having first obtained an order compelling discovery.]

[ (ii)

If a party, or an officer, director, or an authorized representative of a party, fails to comply with an order compelling discovery, the IHO may, after opportunity for hearing, make orders in response to such failure, including any of the following:]

[ (I)

preventing the disobedient party from further discovery of any kind, or of a particular kind;]

[ (II)

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

[ (III)

disallowing the disobedient party from supporting or opposing designated claims or defenses, or prohibiting the party from introducing designated matters into evidence; and]

[ (IV)

striking pleadings or parts of pleadings, staying further action until the order is obeyed, or dismissing the proceeding with or without prejudice.]

[ (iii)

The IHO may impose any of the sanctions listed above on a party who abuses the discovery process in seeking or resisting discovery or who files a request, response, or answer that is frivolous, oppressive, or made for the purpose of delay.]

[ (iv)

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

[ (v)

Unless permitted by law, party representatives shall not communicate with the IHO or the commissioner without the knowledge of all other parties. (The IHO may impose sanctions for impermissible communications.)]

[ (vi)

The IHO shall state the specific basis for any sanction in the record or in a written order. A sanctioned party has the right to appeal the sanction to the commissioner.]

(h)

Dismissal. After giving notice and hearing, the IHO may upon the motion of any party or the IHO's own motion, dismiss the appeal upon showing of any one of the following: [ Dismissal without Hearing. ]

[ (1)

The IHO may entertain motions for dismissal without a hearing for the following reasons: ]

(1)

[ (A) ] failure to prosecute;

(2)

[ (B) ] unnecessary duplication of proceedings or res judicata;

(3)

[ (C) ] withdrawal;

(4)

[ (D) ] moot questions;

(5)

[ (E) ] lack of jurisdiction;

(6)

[ (F) ] failure to raise a material issue in the pleading;

(7)

[ (G) ] failure of a party to appear at a scheduled hearing.

[ (2)

If the IHO finds that such motion should be granted the IHO will so order, and the commissioner may enter a final order of dismissal.]

(i)

Motions.

(1)

Unless otherwise provided by these rules, the following listed in subparagraphs (A)-(I) of this paragraph shall apply.

(A)

A party may move for appropriate relief before or during a hearing.

(B)

A party shall submit all motions in writing or orally at a hearing.

(C)

Written motions shall:

(i)

be filed no later than 15 days before the date of the hearing, except where good cause is stated in the motion, the IHO may permit a written motion subsequent to that time;

(ii)

state concisely the question to be determined;

(iii)

be accompanied by any necessary supporting documentation; and

(iv)

be served on each party.

(D)

An answer to a written motion shall be filed on the earlier of:

(i)

seven days after receipt of the motion; or

(ii)

on the date of the hearing.

(E)

On written notice to all parties or with telephone consent of all parties, the IHO may schedule a conference to consider a written motion.

(F)

The IHO may reserve ruling on a motion until after the hearing.

(G)

The IHO may issue a written decision or state the decision on the record.

(H)

If a ruling on a motion is reserved, the ruling shall be in writing and may be included in the IHO's decision.

(I)

The filing or pendency of a motion does not alter or extend any time limit otherwise established by these rules.

(2)

Continuance(s) may be granted by the IHO in accordance with applicable law. Motions for continuances shall be in writing or stated in the record and shall set forth the specific grounds upon which the party seeks the continuance.

(3)

Unless made during a prehearing or hearing, a party seeking a continuance, cancellation of a scheduled proceeding, or extension of an established deadline must file such motion no later than 10 days before the date or deadline in question. A motion filed less than 10 days before the date or deadline in question must contain a certification that the movant contacted the other party(ies) and whether or not it is opposed by any party(ies). Further, if a continuance to a certain date is sought, the motion must include a proposed date or dates and must indicate whether the party(ies) contacted agree on the proposed new date(s).

(j)

Hearing.

(1)

The IHO shall set the date and time for the hearing. [ The hearing must take place within 45 days of the request unless additional time is granted as authorized by law. ] The location shall be the Commission's regional or area office nearest the Appellant's residence or as agreed to by the parties.

(2)

Order of procedure at the hearing.

(A)

The appellant may state briefly the nature of the claim or defense, what the appellant expects to prove, and the relief sought. Immediately thereafter, the respondent may make a similar statement, and any other parties will be afforded similar rights as determined by the IHO. Each party is allowed 10 minutes for such statement.

(B)

Evidence shall then be introduced by the appellant. The respondent and any other parties shall have the opportunity to cross-examine each of the appellant's witnesses.

(C)

Cross-examination is not limited solely to matters raised on direct examination. Parties are entitled to redirect and recross-examination.

(D)

Unless the statement has already been made, the respondent may briefly state the nature of the claim or defense, what the respondent expects to prove, and the relief sought.

(E)

Evidence, if any, shall be introduced by the respondent. The appellant and any other parties shall have the opportunity to cross-examine each of the respondent's witnesses.

(F)

Any other parties may make statements and introduce evidence. The appellant and respondent shall have opportunity to cross-examine the other parties' witnesses.

(G)

The parties may present rebuttal evidence.

(H)

The parties may be allowed closing statements at the discretion of the IHO.

(I)

The IHO may permit deviations from this order of procedure in the interest of justice or to expedite the proceedings.

(J)

Parties shall provide four copies of each exhibit offered.

(3)

No evidence shall be admitted which is irrelevant, immaterial, or unduly repetitious.

(4)

Documentary evidence and official notice.

(A)

Documentary evidence may be received in the form of copies or excerpts if the original is not readily available. On request, parties shall be given an opportunity to compare the original and the copy or excerpts.

(B)

When numerous similar documents which are otherwise admissible are offered into evidence, the IHO may limit the documents received to those which are typical and representative. The IHO may also require that an abstract of relevant data from the documents be presented in the form of an exhibit, provided that all parties of record or their representatives be given the right to examine the documents from which such abstracts were made.

(C)

The following laws, rules, regulations, and policies listed in clauses (i)-(vi) of this subparagraph are officially noticed:

(i)

the Rehabilitation Act of 1973, as amended, 29 United States Code, §701 et seq.;

(ii)

Department of Education regulations, 34 Code of Federal Regulations, Part 361 [ §361.48 ];

(iii)

Texas Human Resources Code, Title 7, §111 et seq.;

(iv)

TRC State Plan for Vocational Rehabilitation Services;

(v)

TRC Rehabilitation Services Manual; and

(vi)

TRC Administrative Policies and Procedures Manual.

[ (D)

Prepared testimony. In all proceedings and after service of copies upon all parties of record at such time as may be designated by the IHO, the prepared testimony of a witness upon direct examination, either in narrative or question and answer form, may be incorporated in the record as if read or received as an exhibit, upon the witness's being sworn and identifying the same. Such witness shall be subject to cross-examination and the prepared testimony shall be subject to a motion to strike in whole or in part.]

(D)

[ (E) ] Exhibits.

(i)

Exhibits shall not exceed 8 1/2 by 11 inches (unless they are folded to that size). Maps, drawings, and other exhibits which are not the required size shall be rolled or folded so as not to unduly encumber the record. Exhibits not conforming to this rule may be excluded.

(ii)

Exhibits shall be limited to facts material and relevant to the issues involved in a particular proceeding.

(iii)

The original of each exhibit offered shall be tendered to the court reporter for identification.

(iv)

In the event an exhibit has been identified, objected to, and excluded, the IHO shall determine whether or not the party offering the exhibit withdraws the offer, and, if so, permit the return of the exhibit. If the excluded exhibit is not withdrawn it shall be given an exhibit number for identification, shall be endorsed by the IHO with a ruling, and shall be included in the record for the only purpose of preserving the exception.

(E)

[ (F) ] Offer of proof. When testimony on direct examination is excluded by ruling of the IHO, the party offering such evidence shall be permitted to make an offer of proof by dictating or submitting in writing the substance of the proposed testimony prior to the conclusion of the hearing. [ Such offer of proof shall be sufficient to preserve the point for review by the commissioner. ] The IHO may ask such questions of the witness as deemed necessary to satisfy that the witness would testify as represented in the offer of proof. [ An alleged error in sustaining an objection to questions asked on cross-examination may be preserved without making an offer of proof. ]

(5)

Failure to attend hearing and default. If, after receiving notice of a hearing, a party fails to attend a hearing, the IHO may proceed in that party's absence and, where appropriate, may issue a decision against the defaulting party.

(k)

Impartial Hearing Officer Decision.

(1)

Within 30 days of the hearing completion date, the IHO shall issue an opinion based on the provisions of the approved State plan, the applicable regulations, and the Act which shall contain separately stated:

(A)

findings of fact;

(B)

conclusions of law; and

(C)

opinion.

(2)

The [ Commissioner's ] Office for Administrative Hearings and Subrogation shall submit the IHO opinion to the Commissioner with a copy to each party.

§104.6. Motion for Reconsideration [ Action by the Commissioner ].

Either party to a hearing may file a motion for reconsideration with the Office for Administrative Hearings and Subrogation within 15 days after issuance of the decision of the impartial hearing officer. The motion for reconsideration must specify the matters in the decision of the impartial hearing officer which the party considers to be erroneous. The impartial hearing officer shall rule on the motion for reconsideration no later than 10 days after receipt of the motion. If the motion is granted, the IHO shall issue a decision upon reconsideration within an additional 15 days. If the impartial hearing officer fails to rule on the motion for reconsideration within 10 days, the motion is denied as a matter of law.

[ (a)

The Commissioner cannot delegate the responsibility for making any final Commission order to any other officer or employee of the Commission.]

[ (b)

Within 20 days of the mailing of the IHO's opinion the Commissioner will decide whether or not to formally review the IHO opinion by studying the opinion and the official case record. The Commissioner shall notify the appellant in writing of his or her intent to review within 20 days of the mailing of the IHO opinion.]

[ (1)

If the Commissioner fails to provide the required written notice, the IHO opinion is final.]

[ (2)

If the Commissioner decides not to formally review the IHO's opinion, the opinion of the IHO becomes final. In that case, the Commissioner will issue an order making the opinion of the IHO final.]

[ (3)

If the Commissioner decides to formally review the IHO's opinion, the Commissioner will issue an order to that effect and written notice of this order will be sent to the Appellant by certified mail, return receipt requested.]

[ (4)

The parties will then have 15 days in which to submit any additional relevant evidence. The 15-day period begins on the date of the order that informs the parties that the Commissioner will review the opinion of the IHO.]

[ (5)

Within 30 days of the mailing of the Commissioner's order to review the IHO's opinion the Commissioner shall issue a final order and provide a full report to all parties in writing of the reasons for the order including findings of fact and conclusions of law separately stated.]

[ (c)

The Commissioner's order reviewing the IHO's opinion will be based on the following standards of review.]

[ (1)

The Commissioner may not overturn or modify an opinion of an IHO, or part of an opinion that supports the position of the Appellant unless the Commissioner concludes, based on clear and convincing evidence, that the opinion of the IHO is clearly erroneous on the basis of being contrary to federal or state law, including policy.]

[ (2)

Review shall include all applicable laws, rules, regulations, policies, and procedures.]

[ (3)

Review may be made on all questions of law, fact, and written policy and procedure.]

[ (4)

The review may result in affirming the opinion of the IHO in whole or in part or reversing or remanding the case to the IHO for further proceedings.]

[ (5)

The review may result in reversing or remanding the opinion of the IHO when the record of the hearing or opinion contains any one or more of the following, and the opinion is found to be:]

[ (A)

in violation of constitutional, statutory, regulatory, or written policy provisions;]

[ (B)

in excess of the statutory authority of the commission;]

[ (C)

made upon unlawful procedure;]

[ (D)

affected by other error of law, regulation, or written policy;]

[ (E)

not reasonably supported by the evidence; or]

[ (F)

arbitrary, capricious, or characterized by abuse of or clearly unwarranted exercise of discretion.]

[ (6)

When none of the conditions in paragraph (5) of this subsection are present in the record of the hearing or the opinion, an order affirming the opinion of the IHO shall be issued.]

Finality of the Decision of the Commission [ Motions for Rehearing ].

The decision of the impartial hearing officer under §104.6 of this title (relating to Motion for Reconsideration) is the final decision of the Commission. A decision dismissing the case under §104.3(h)(1) of this title (relating to General Provisions) or §104.5(j)(5) of this title (relating to Formal Appeal and Mediation) becomes the final decision of the Commission if a timely motion for reconsideration is not filed.

[ (a)

A motion for rehearing is prerequisite to a judicial appeal. A motion for rehearing must be filed by a party within 20 days after the date the party receives notice of the commissioner's final decision or order.]

[ (b)

Replies to a motion for rehearing must be filed with the commission within 15 days after the date the motion for rehearing is filed.]

[ (c)

Commission action on the motion for rehearing must be taken within 30 days of receipt of the motion for rehearing. If agency action is not taken within the 30-day period, the motion for rehearing is overruled by operation of law 30 days after the date the motion for rehearing is received by the commission.]

[ (d)

The commission may, by written order, extend the period of time for filing the motions and replies and taking agency action, except that an extension may not extend the period for commission action beyond 90 days after the motion for rehearing is received by the commission.]

[ (e)

In the event of an extension, the motion for rehearing is overruled by operation of law on the date fixed by the order, or in the absence of a fixed date, 90 days after the motion for rehearing is received by the commission.]

Civil Action/Judicial Review [ Judicial Review of Final Order ]. (a)

General. Any party aggrieved by a final decision of an impartial hearing officer may bring a civil action for review of such decision. The action may be brought in any State court of competent jurisdiction or in a district court of the United States of competent jurisdiction without regard to the amount in controversy. In any such action the court will receive the records relating to the hearing, will hear additional evidence at the request of a party to the action; and basing the decision of the court on the preponderance of the evidence, will grant such relief as the court determines to be appropriate.

(b)

Exhaustion of administrative remedies, including a Motion for Reconsideration, is a prerequisite to judicial review.

(c)

A party seeking judicial review of the final Commission decision shall commence his civil action no later than 30 days after the date of the final decision.

(d)

Implementation. If a party brings a civil action to challenge a final decision of a hearing officer under §104.3(h)(1) of this title (relating to General Provisions) or §104.6 of this title (relating to Motion for Reconsideration), the final decision involved shall be implemented pending review by the court. [ Pursuant to these rules and 29 United States Code §722(c)(5)(J) the district courts of Travis County, Texas, have jurisdiction to hear appeals of final orders of the Commission. The standard of review will be by substantial evidence. A party may seek judicial review of the final order of the Commission by appealing to the Travis County District Courts within 30 days of receipt of notice that a party's motion for rehearing has been overruled. ]

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 February 22, 1999.

TRD-9901083

Charles Schiesser

Chief of Staff

Texas Rehabilitation Commission

Earliest possible date of adoption: April 4, 1999

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


Chapter 106. Contract Administration

The Texas Rehabilitation Commission (TRC) proposes the repeal of §106.35 and new §106.35, acquisition of client goods and services.

The section is being repealed and replaced to simplify the process of appeals by contractors who believe that some adverse action relating to their contract has been taken by the commission.

Charles E. Harrison, Jr., Deputy Commissioner for Financial Services, has determined that for the first five-year period the section is 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 section is in effect the public benefit anticipated as a result of enforcing the section will be a simplified process of appeals by contractors who believe that some adverse action relating to their contract has been taken by the commission. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section 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.

Subchapter A. Acquisition of Client Goods and Services

40 TAC §106.35

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

The repeal is 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.

§106.35. Appeals.

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 February 22, 1999.

TRD-9901084

Charles Schiesser

Chief of Staff

Texas Rehabilitation Commission

Earliest possible date of adoption: April 4, 1999

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


The new section is 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.

§106.35. Appeals.

(a)

Appeals based upon final decision letter.

(1)

General. After the commission has issued a final decision letter to the contractor implementing an adverse action taken by the commission pursuant to §106.32 of this title (relating to Adverse Actions), the contractor has the right to appeal. Except as provided in subsection (b) of this section, a copy of the final decision letter must be included with the appeal, and the appeal must be received by the commission within 60 days after issuance of the final decision letter. Appeals and requests for reconsideration under this section must be sent to the commission by certified mail--return receipt requested.

(2)

Procedures. Appeals must be in writing and submitted to the appropriate deputy commissioner. Written materials that the contractor wishes to have considered may be submitted with the appeal. The appeal should state whether the contractor requests a personal meeting to discuss the appeal, and if the contractor requests, a meeting will be scheduled with a representative of the commission. At the meeting, the contractor may be represented by a person of his or her selection, the contractor will be provided with an opportunity to present evidence and information to support his or her position, and the contractor and the commission may agree to employ a mediator at the commission's expense. A written decision will be provided to the contractor within 30 days after conclusion of the meeting, or if no meeting is held, within 45 days after the commission receives the appeal, unless the appropriate deputy commissioner extends the time.

(3)

Record. The record of an appeal shall consist of a copy of the written appeal; a copy of the final decision letter described in paragraph (1) of this subsection, or if no final decision letter was issued, a copy of the contractor's request for final decision letter described in subsection (b) of this section; a copy of the written decision issued by the commission described in paragraph (2) of this subsection; and if applicable, a copy of any mediation agreement that was executed by the commission and the contractor.

(4)

Request for reconsideration. After the decision on an appeal is issued, the contractor may submit in writing a request for reconsideration. Requests are to be directed to the Assistant Commissioner, Buyer Support Services, and must be received by the commission within 20 days after the decision on the appeal is issued. The request for reconsideration will be decided by or on behalf of the Commissioner. The decision will be based on the record of the appeal described in paragraph (3) of this subsection, a summary prepared by the commission representative of the information provided by the contractor and the evidence accepted by the commission representative at the meeting described in paragraph (2) of this subsection, any written material submitted by the contractor along with his or her request for reconsideration, and the commission representative's response to the request for reconsideration.

(A)

The request for reconsideration shall:

(i)

specifically point out any errors in the record;

(ii)

specify all relief requested; and

(iii)

state all reasons why the relief should be granted.

(B)

The commission representative shall file his or her response to the request for reconsideration not later than 20 days after the commission's receipt of the request.

(C)

The commission shall issue a decision on the request for reconsideration no later than 45 days after receipt of the request for reconsideration. The decision may affirm, reverse or modify the final decision letter. The decision on the request for reconsideration is the final decision of the commission. If the commission does not rule on the request for reconsideration within 45 days, the written decision on the appeal which is described in paragraph (2) of this subsection becomes the final decision of the commission. The Commission and/or his or her designee may extend any time period by ten days upon written request of the contractor or commission representative.

(b)

Obtaining a final decision letter. If the contractor believes that an adverse action has been taken against him before a final decision letter has been issued, the contractor may contact the appropriate deputy commissioner in writing, describe the adverse action which has been taken, and request a final decision letter. Requests for a final decision letter must be submitted to the commission by certified mail--return receipt requested. If the commission does not issue a final decision letter within 30 days after receipt of the request by the deputy commissioner, the contractor may, at his or her option, appeal within 60 days of receipt of the request by the deputy commissioner. A copy of the request for a final decision letter, along with a U.S. Postal Service or equivalent notice showing receipt of the request by the commission, must be included with the appeal.

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

Filed with the Office of the Secretary of State, on February 22, 1999.

TRD-9901085

Charles Schiesser

Chief of Staff

Texas Rehabilitation Commission

Earliest possible date of adoption: April 4, 1999

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