TITLE social-services-and-assistance

Part I. Texas Department of Human Services

Chapter 19. Nursing Facility Requirements for Licensure and Medicaid Certification

Subchapter AA. Vendor Payment

40 TAC §19.2612

The Texas Department of Human Services (DHS) proposes new §19.2612, concerning quality incentive payment, in its Nursing Facility Requirements for Licensure and Medicaid Certification chapter. The purpose of the new section is to reward Medicaid nursing facilities which provide high quality services. The rule allows DHS to establish a quality incentive payment system under which nursing facilities may receive monetary quality incentives, on a sliding scale, based on the level of quality in their facilities. Quality will be measured in two arenas: resident outcomes and regulatory compliance.

Eric M. Bost, commissioner, has determined that for the first five years the section is in effect there will be fiscal implications for state government as a result of enforcing or administering the section. The fiscal impact cannot be determined until the appropriations for Fiscal Year 2000 and 2001 have been determined. There will be no fiscal implications for local government as a result of enforcing or administering the new section.

Mr. Bost 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 higher quality of services within the Medicaid nursing facilities. There will be no adverse economic effect on large or small businesses. The quality incentive payments will be in addition to the regular Medicaid nursing facility rate. There is no anticipated economic cost to persons who are required to comply with the proposed section.

Questions about the content of this proposal may be directed to Susan Syler at (512) 438-3111 in DHS's Long Term Care Policy Section. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-155, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

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

The new section implements the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

§19.2612.Quality Incentive Payment.

For services delivered after September 1, 1999, the department may make Quality Incentive payments to facilities according to reimbursement rules developed by the Health and Human Services Commission. The Department of Human Services will determine the qualifying facilities.

(1)

The Board of Human Services will review the adopted plan at least biennially.

(2)

Incentive payments will be based on:

(A)

specific resident care domains selected from the Center for Health Systems Research and Analysis (CHSRA) Quality Indicators; and

(B)

regulatory compliance.

(3)

The incentive payment is in addition to the daily vendor rate paid to the provider.

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 April 30, 1999.

TRD-9902566

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Proposed date of adoption: August 15, 1999

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


Part II. Texas Rehabilitation Commission

Chapter 104. Informal Appeals, and Mediation by Applicants/Clients of Determinations by Agency Personnel that Affect the Provision of Vocational Rehabilitation Services

40 TAC §104.5

The Texas Rehabilitation Commission (TRC) proposes an amendment to §104.5, concerning Informal Appeals, and Mediation by Applicants/Clients of Determinations by Agency Personnel that Affect the Provision of Vocational Rehabilitation Services.

The section is being amended to replace the word "opinion" with "decision" in subsection (k)(1) and (C).

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 the replacement of the word "opinion" with "decision". 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.

The amendment 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.

§104.5. Formal Appeal and Mediation.

(a)

The formal appeal process commences with the filing of a Petition for Administrative Hearing with the Office for Administrative Hearings and Subrogation.

(b)

Role of Office for Administrative Hearings and Subrogation. Upon receipt of the Petition for Administrative Hearing, the 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;

(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 in accordance with the Rehabilitation Act 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;

(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)

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 (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;

(F)

must have 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)-(j) of this section, except subsection (j)(4)(F), 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)

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)

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;

(xiv)

mediation; and

(xx)

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 be recorded or transcribed.

(E)

The IHO may, after acquiring jurisdiction, issue an order requiring a prehearing "statement of the case." The parties shall 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 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.

(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)

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)

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 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.

(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:

(1)

failure to prosecute;

(2)

unnecessary duplication of proceedings or res judicata;

(3)

withdrawal;

(4)

moot questions;

(5)

lack of jurisdiction;

(6)

failure to raise a material issue in the pleading;

(7)

failure of a party to appear at a scheduled hearing.

(i)

Motions.

(1)

Unless otherwise provided by these rules, the following 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 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 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;

(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)

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)

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. 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.

(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 a decision [ 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)

decision [ opinion ].

(2)

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

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 May 3, 1999.

TRD-9902587

Charles Schiesser

Chief of Staff

Texas Rehabilitation Commission

Earliest possible date of adoption: June 13, 1999

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


Part XIX. Texas Department of Protective and Regulatory Services

Chapter 700. Child Protective Services

Subchapter R. Cost-Finding Methodology for 24-Hour Child-Care Facilities

40 TAC §700.1802

The Texas Department of Protective and Regulatory Services (TDPRS) proposes an amendment to §700.1802, concerning cost-finding analysis, in its Child Protective Services chapter. Rules for the cost-finding methodology for 24-hour child care facilities currently include therapy costs in its recommended payment rates for Levels of Care 3 through 6. The purpose of the amendment is to require contractors to access Medicaid for Medicaid-allowable therapy with certain exceptions. The current payment rate for Levels of Care 3 through 6 will not change as a result of this rule change.

Cindy Brown, Budget and Analysis Division Director, has determined that for the first five-year period the proposed section will be in effect there will be fiscal implications for state government as a result of enforcing or administering the section. As the state is currently not accessing Medicaid funding for these services, this rule change will allow state access to these federal funds. The expected increase in state matching costs cannot be projected at this time, but it should not be material. There will be no fiscal implications for local government as a result of enforcing or administering the amendment.

Ms. Brown 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 that children in TDPRS conservatorship who reside in TDPRS contracted 24-hour child care facilities will have access to an additional resource for therapy services. There will be no adverse effect on small businesses because the policy will result in contracted 24-hour child care facilities having access to an additional resource for providing therapy services to children in their care. The effect on small businesses is the same for businesses other than small businesses. There is no anticipated economic cost to persons who are required to comply with the proposed section.

Questions about the content of the proposal may be directed to Clarice Cefai at (512) 438-5330 in TDPRS's Budget and Analysis Section. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-104, Texas Department of Protective and Regulatory Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

The amendment is proposed under the Human Resources Code (HRC), Chapter 40, which describes the services authorized to be provided by the Texas Department of Protective and Regulatory Services, specifically §40.029 granting rulemaking authority to TDPRS, §40.052 regarding delivery of services, §40.0563 relating to the use of federal funds, and §40.058 relating to contracts and agreements.

The amendment implements the HRC, Chapter 40, which authorizes the department to enter into agreements with federal, state, or other public or private agencies or individuals to accomplish the purposes of the programs authorized by the HRC and which authorizes the department to enter into contracts as necessary to perform any of its powers or duties.

§700.1802.Cost-finding Analysis.

(a)-(b)

(No change.)

(c)

To develop rate recommendations for Board consideration for Levels of Care 2 through 6 and emergency shelters, TDPRS analyzes the information submitted in provider cost reports and related documentation in the following ways.

(1)-(8)

(No change.)

(9)

TDPRS includes therapy costs in its recommended payment rates for emergency shelters. TDPRS only includes therapy costs in its recommended payment rates for Levels of Care 3 through 6 [ and for emergency shelters ] if the provider cannot access Medicaid .

(A)

The provider must access Medicaid for therapy for children in their care unless:

(i)

the child is not eligible for Medicaid; or

(ii)

the necessary therapy is not a service covered by Medicaid; or

(iii)

service limits have been exhausted and the provider has been denied an extension; or

(iv)

there are no Medicaid providers available that meet the needs identified in the service plan within 45 miles to provide the therapy; or

(v)

it is essential and in the child's best interest for a non- Medicaid provider to provide therapy to the child and arrange for a smooth coordination of services for a transitional period of time not to exceed six weeks or six sessions. Any exception beyond the six weeks or six sessions must be approved by TDPRS prior to the provision of services.

(B)

Only if one of the conditions in subparagraph (A) of this paragraph apply are the associated costs to be covered by the level of care payment and considered allowable for inclusion on the provider's cost report.

(10)-(17)

(No change.)

(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 April 30, 1999.

TRD-9902570

C. Ed Davis

Deputy Director, Legal Services

Texas Department of Protective and Regulatory Services

Proposed date of adoption: September 1, 1999

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


Chapter 725. General Licensing Procedures

The Texas Department of Protective and Regulatory Services (TDPRS) proposes amendments to §725.2024 and §725.3044, concerning requesting an administrative review and application, in its General Licensing Services chapter. The purpose of the amendment to §725.2024 is to clarify procedures for requesting administrative reviews of actions or decisions made by Licensing staff. The purpose of the amendment to §725.3044 is to clarify which facilities are exempt from application fees and licensing fees and eliminate inconsistencies regarding timeframes for notifying applicants regarding the acceptance of their applications.

Cindy Brown, Budget and Analysis Division Director, has determined that for the first five-year period the proposed amendment to §725.2024 will be in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Ms. Brown has determined that for the first five-year period the proposed amendment to §725.3044 will be in effect there will be fiscal implications for state government as a result of enforcing or administering the section. The effect on state government for the first five-year period the proposal will be in effect is an estimated increase in revenue of $105 in fiscal year (FY) 1999; $1,225 in FY 2000; $1,225 in FY 2001; $1,225 in FY 2002; and $1,225 in FY 2003. There will be no fiscal implications for local government as a result of enforcing or administering either amendment.

Ms. Brown also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of enforcing the sections will be to (1) clarify which facilities are exempt from application and license fees, (2) clarify the procedures for accepting applications, and (3) eliminate inconsistencies in timeframes for requesting administrative reviews. The amendment to §725.2024 will have no adverse impact on small businesses because the proposed section clarifies information in the existing rule regarding procedures related to Licensing regulations. The amendment to §725.3044 will have an adverse economic effect on small businesses. In accordance with the Human Resources Code, Chapter 42, this amendment requires that non-profit 24-hour child care facilities that charge no fees for their services, non-profit 24-hour child care facilities that provide care for children in TDPRS's managing conservatorship, licensed foster family homes, and licensed foster group homes pay a $35 application fee. Because the fee is nominal, the effect on small businesses and large businesses is expected to be the same. There is no anticipated economic cost to persons who are required to comply with proposed §725.2024. The anticipated economic cost to persons who are required to comply with proposed §725.3044 is an additional cost of $35 per facility in fiscal year (FY) 1999; $35 per facility in FY 2000; $35 per facility in FY 2001; $35 per facility in FY 2002; and $35 per facility in FY 2003.

Questions about the content of the proposal may be directed to Char Bateman at (512) 438-2247 in TDPRS's Licensing Division. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-136, Texas Department of Protective and Regulatory Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

Subchapter U. Day Care Licensing Procedures

40 TAC §725.2024

The amendment is proposed under the Human Resources Code (HRC), Title 2, Chapter 42, which authorizes the department to administer general child-placing and child care licensing programs.

The amendment implements the Human Resources Code, §§42.001- 42.077.

§725.2024.Requesting an Administrative Review.

If an applicant or a holder of a license/certificate/registration/listing disagrees with a decision or action by licensing staff and wishes to request an administrative review, the requestor must describe the decision or action in dispute. The specific request must be in writing to a licensing supervisor or administrative staff. The request may be given by telephone or in person, but must be followed up with written notification. The request for an administrative review must be made within 15 [ 14 ] calendar days of notification of the disputed licensing decision or action.

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 April 30, 1999.

TRD-9902571

C. Ed Davis

Deputy Director, Legal Services

Texas Department of Protective and Regulatory Services

Proposed date of adoption: August 1, 1999

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


Subchapter EE. Agency and Institutional Licensing Procedures

40 TAC §725.3044

The amendment is proposed under the Human Resources Code (HRC), Title 2, Chapter 42, which authorizes the department to administer general child-placing and child care licensing programs.

The amendment implements the Human Resources Code, §§42.001- 42.077.

§725.3044.Application.

(a)

Each governing body planning to operate a facility subject to licensing or certification must complete an application and send it to licensing staff. Facilities subject to licensing must attach a $35 non-refundable application fee plus $35 (or $50 for a child-placing agency or maternity home) provisional license fee to the department's Licensing Fee Schedule and send these to the department. The provisional license fee may be refunded if the department does not issue the provisional license.

(b)

Facilities that require certification are exempt from application fees and all fees for licenses.

(c)

[ (b) The requirements do not apply to: ] Facilities have to pay application fees, but not fees for licenses if they are:

[ (1)

facilities that require certification; ]

(1)

[ (2) ] non-profit 24-hour child care facilities that:

(A)

charge no fees for their services; or

(B)

provide care for children in the department's managing conservatorship.

(2)

[ (3) ] licensed foster family homes and foster group homes.

[ (4)

licensed operating facilities that are changing the corporate structure only (no real change in the facility's ownership). ]

(d)

[ (c) ] The applicant is entitled to a written notice from the licensing representative if the application is incomplete or compliance is not substantiated.

(e)

[ (d) ] An applicant who pays the initial fees and later withdraws the application, but reapplies within 30 days, does not have to pay new fees.

(f)

[ (e) ] Within 21 calendar days [ 15 workdays ] of receiving the application, the department notifies the applicant in writing that:

(1)

the application is complete and accepted for filing, or

(2)

the application is incomplete. The notification letter must explain what is needed to complete it.

(g)

[ (f) ] The applicant may authorize the department by telephone to change or add to an incomplete application. Staff making the changes must date and initial them and send the applicant a copy with the letter notifying him that the application is complete and accepted for filing.

(h)

(g) Within two months of the date that a completed application is accepted for filing, the department decides to issue or deny a license.

(i)

[ (h) ] The applicant may appeal any dispute about the amount of time the department took to decide that an application was complete or to approve or deny an application. To appeal, the applicant must submit a written request within 30 days after the department's time limit expires. The applicant must send the request stating the nature of the dispute to the director of licensing. If the department exceeded the time limit without establishing good cause, the appeal is decided in the applicant's favor. In this case, the department must reimburse the application fee.

(j)

[ (i) ] The requirements regarding an application received after revocation or denial of a license are as follows.

(1)

If Texas Department of Protective and Regulatory Services (TDPRS) denies an application for a license because of non-compliance with standards or violation of the child care or maternity home licensing law, time limits for an appeal must have ended and the facility must have closed [ and remained closed ] before a new application for a license can be accepted. If a facility ceases operation before the end of the time to request an appeal, and if that facility waives in writing the right to request an appeal, TDPRS [ licensing ] staff accept a completed application. If the facility begins operation before the provisional license is issued, TDPRS [ licensing ] staff deny the application. An application fee and provisional license fee must be sent to TDPRS when a completed application is sent [ to licensing staff ]. The cost of reimbursing TDPRS for publishing the notice of revocation, as required by the Human Resources Code, Chapter 42, §42.077, must be added to the application fee.

(2)

A person whose license or certification is revoked may not apply for any license or certification under this section before the second anniversary of the date on which the revocation by TDPRS or court order takes effect. The cost of reimbursing TDPRS for publishing the notice of revocation, as required by the Human Resources Code, Chapter 42, §42.077, must be added to the application fee at the time the facility reapplies.

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 April 30, 1999.

TRD-9902572

C. Ed Davis

Deputy Director, Legal Services

Texas Department of Protective and Regulatory Services

Proposed date of adoption: August 1, 1999

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