TITLE 1.ADMINISTRATION

Part 5. GENERAL SERVICES COMMISSION

Chapter 111. EXECUTIVE ADMINISTRATION DIVISION

The General Services Commission proposes amendments to Title 1, T.A.C., Subchapter A - Administration, §§111.1 through 111.5 in order to revise statutory citations, delete definitions, streamline the protests/dispute resolution/hearing procedure by directing all protests to the procurement director, and improve the readability of the language in the rules. New rules are also proposed for §111.6 - Petition for Adoption of Rules pursuant to Texas Government Code, §2001.021; and §111.7 - Negotiation and Mediation of Certain Contract Disputes pursuant to Texas Government Code, §2260.052(c). Amendments to Subchapter C - Cost of Copies of Public Information, §111.62 are being proposed in order to delete obsolete language. The amendments and new rules are a part of the periodic rule review process mandated by Texas Government Code, §2001.039 (relating to Agency Review of Existing Rules).

Ann Dillon, General Counsel, has determined for the first five year period the rules are in effect, there will be no adverse effect to state or local government as a result of enforcing these rules.

Ann Dillon, General Counsel, further determines that for each year of the first five-year period the amendments are in effect, the public benefit anticipated as a result of enforcing these rules will be streamlined procedures, the deletion of obsolete language; and new procedures for petition by an interested person or organization for adoption of rules, and procedures for the more timely and efficient resolution of contract disputes between contractors and the commission pursuant to the Texas Government Code, Chapter 2260. There will be no effect on small or large businesses and/or persons.

Comments on the proposals may be submitted to Ann Dillon, General Counsel, General Services Commission, P.O. Box 13047, Austin, TX 78711-3047. Comments must be received no later than thirty days from the date of publication of the proposal to the Texas Register.

Subchapter A. ADMINISTRATION

1 TAC §§111.1 - 111.7

The amendment and new rules are proposed under the authority of the Texas Government Code, Title 10, Subtitle A, §2001.021, Texas Government Code, Title 10, Subtitle D, §§2152.060, 2152.105, 2155.076, Texas Government Code, Title 10, Subtitle F, §2260.052, and Texas Government Code, Chapter 552, Subchapter F, which provides the General Services Commission with the authority to promulgate rules necessary to implement the sections.

The following code is affected by these rules: Government Code, Title 10, Subtitle D, Government Code, Title 10, Subtitle F, Chapter 2260, and Texas Government Code, Chapter 552, Subchapter F.

§111.1.Organization.

(a)

The commission is composed of six members appointed by the governor to set policy, and employ and direct an executive director. The commissioners retain and exercise all authority and responsibility assigned to them by law and not delegated to the executive director.

(b)

The executive director manages the day-to-day business of the commission, employs staff, and carries out other duties and responsibilities assigned by law or delegated by the commission.

(c)

A delegation of authority to the executive director must be made by the commission in an open meeting. The commission may review, modify, or ratify a delegation at any open meeting. A change in membership of the commission does not void an existing delegation of authority; it remains in effect until another one is approved by a majority vote [ quorum ] of the commission at an open meeting .

(d)

All decisions of the commission shall be by majority vote of commissioners present and voting.

§111.2.Definitions.

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

(1)

Act--The State Purchasing and General Services Act, Chapter 2151, et seq., Texas Government Code [ Texas Civil Statutes, Article 601b ].

(2)

Best interests of the state--Most advantageous to the state in light of all relevant circumstances.

(3)

Commission--The General Services Commission.

(4)

Competitive bidding--The process of inviting and obtaining bids from competing sources in response to advertised competitive specifications, by which an award is made as authorized by the relevant statute [ made to the lowest and best bidder ] meeting the specifications. The process contemplates giving potential bidders a reasonable opportunity to bid, and requires that all bidders be placed on the same plane of equality. Each bidder must bid on the same advertised specifications, terms, and conditions in all the items and parts of a contract. The purpose of competitive bidding is to stimulate competition, prevent favoritism, and secure the best goods and services at the lowest practicable price, for the benefit of the state. Competitive bidding cannot occur where contract specifications, terms, or conditions prevent or unduly restrict competition, favor a particular vendor, or increase the cost of goods or services without providing a corresponding benefit to the state.

(5)

Electronic data interchange (EDI)--Exchange of information electronically between business parties in a structured format, including, but not limited to, computer direct or indirect electronic information exchange, exchange of computer tapes and disks, and telefacsimile transmission.

(6)

Local government--A county, municipality, school district, special district, junior college district, or other legally constituted political subdivision of the state.

(7)

Minor technicality--A requirement in a bid invitation which, if waived or modified by the commission when evaluating bids, would not give a bidder an unfair advantage over other bidders or result in a material change in the contract.

(8)

Nonresident bidder--A bidder whose principal place of business is not in Texas, but does not include a bidder whose majority owner or parent company has its principal place of business in Texas.

[ (9)

Payment bond--A deposit, pledge, or contract of guaranty supplied by a successful bidder to protect the state against loss due to the bidder's failure to pay material suppliers and subcontractors. Acceptable forms of payment bonds are: cashier's check, certified check, or irrevocable letter of credit issued by a financial institution subject to the laws of Texas; a surety or blanket bond from a company chartered or authorized to do business in Texas; United States treasury bond; or certificate of deposit.]

[ (10)

Performance bond--A deposit, pledge, or contract of guaranty supplied by a successful bidder to protect the state against loss due to the bidder's inability to complete the contract as agreed. Acceptable forms of performance bonds are those listed in the definition of payment bond.]

(9)

[ (11) ] Principal place of business in Texas--A permanent business office located in Texas from which a bid is submitted and from which business activities are conducted other than submitting bids to governmental agencies, where at least one employee works for the business entity submitting bids.

10

[ (12) ] Texas resident bidder--A bidder with its principal place of business in Texas, including a bidder whose majority owner or parent company has its principal place of business in Texas.

§111.3.Protests/Dispute Resolution/Hearing.

(a)

Any actual or prospective bidder, offeror, or contractor who is aggrieved in connection with the solicitation, evaluation, or award of a contract may formally protest to the procurement director [ division director (the director) in whose division the action is (was) being processed ]. Such protests must be in writing and received in the procurement [ executive ] director's office within 10 working days after such aggrieved person knows, or should have known, of the occurrence of the action which is protested. Formal protests must conform to the requirements of this subsection and subsection (c) of this section, and shall be resolved in accordance with the procedure set forth in subsections (d) and (e) of this section. Copies of the protest must be mailed or delivered by the protesting party to the using agency and other interested parties. For the purposes of this section, "interested parties" means all vendors who have submitted bids or proposals for the contract involved.

(b)

In the event of a timely protest or appeal under this section, the state shall not proceed further with the solicitation or with the award of the contract unless the executive director, after consultation with the using agency and the procurement [ appropriate division ] director, makes a written determination that the award of contract without delay is necessary to protect the best [ substantial ] interests of the state.

(c)

A formal protest must be sworn and contain:

(1)

a specific identification of the statutory or regulatory provision(s) that the action complained of is alleged to have violated;

(2)

a specific description of each act alleged to have violated the statutory or regulatory provision(s) identified in paragraph (1) of this subsection;

(3)

a precise statement of the relevant facts;

(4)

an identification of the issue or issues to be resolved;

(5)

argument and authorities in support of the protest; and

(6)

a statement that copies of the protest have been mailed or delivered to the using agency and other identifiable interested parties.

(d)

The procurement director shall have the authority, prior to appeal to the executive director of the commission, to settle and resolve the dispute concerning the solicitation or award of a contract. The procurement director may solicit written responses to the protest from other interested parties.

(e)

If the protest is not resolved by mutual agreement, the procurement director will issue a written determination on the protest.

(1)

If the procurement director determines that no violation of rules or statutes has occurred, he shall so inform the protesting party, the using agency, and other interested parties by letter which sets forth the reasons for the determination.

(2)

If the procurement director determines that a violation of the rules or statutes has occurred in a case where a contract has not been awarded, he shall so inform the protesting party, the using agency, and other interested parties by letter which sets forth the reasons for the determination and the appropriate remedial action.

(3)

If the director determines that a violation of the rules or statutes has occurred in a case where a contract has been awarded, he shall so inform the protesting party, the using agency, and other interested parties by letter which sets forth the reasons for the determination, which may include ordering the contract void.

(f)

The director's determination on a protest may be appealed by the protesting [ an interested ] party to the executive director of the commission. An appeal of the director's determination must be in writing and must be received in the executive director's office no later than 10 working days after the date of the director's determination. The appeal shall be limited to review of the director's determination. Copies of the appeal must be mailed or delivered by the protesting [ appealing ] party to the using agency and other interested parties and must contain a certified statement [ an affidavit ] that such copies have been provided.

(g)

The executive director may confer with general counsel in his review of the matter appealed [ The general counsel shall review the protest, director's determination, and the appeal and prepare a written opinion with recommendation to the executive director. ] The executive director may, in his discretion, refer the matter to the commissioners for their consideration at a regularly scheduled open meeting or issue a written decision on the protest.

(h)

When a protest has been appealed to the executive director under subsection (f) of this section and has been referred to the commissioners by the executive director under subsection (g) of this section, the following requirements shall apply : [ . ]

(1)

Copies of the appeal and [ , ] responses of interested parties, if any, [ and general counsel recommendation ] shall be mailed to the commissioners . [ , and copies of the general counsel's recommendation shall be mailed to the using agency, the appealing party, and other interested parties. ]

(2)

All interested parties who wish to make an oral presentation at the open meeting are requested to notify the commission general counsel at least 48 hours in advance of the open meeting.

(3)

The commissioners may consider oral presentations and written documents presented by staff and interested parties. The chairman shall set the order and amount of time allowed for presentations.

(4)

The commissioners' determination of the appeal shall be by duly adopted resolution reflected in the minutes of the open meeting, and shall be final.

(i)

Unless good cause for delay is shown or the commission determines that a protest or appeal raises issues significant to procurement practices or procedures, a protest or appeal that is not filed timely will not be considered.

(j)

A decision issued either by the commissioners in open meeting, or in writing by the executive director, shall be the final administrative action of the commission.

§111.4.Ethical Standards.

(a)

This section states the ethical standards of conduct required of commission employees, vendors, potential vendors, and employees of other agencies when acting under authority delegated from the commission.

(b)

A former employee who ceases service or employment with the commission on or after January 1, 1992, may not represent any person or receive compensation for services rendered on behalf of any person regarding a particular matter in which the former employee participated during the period of employment, either through personal involvement or because the case or proceeding was a matter within the employee's official responsibility.

(c)

An employee may not:

(1)

participate in work on a commission contract knowing that the employee, or member of their immediate family has an actual or potential financial interest in the contract, including prospective employment;

(2)

solicit or accept anything of value from an actual or potential vendor;

(3)

be employed by, or agree to work for, a vendor or potential vendor;

(4)

knowingly disclose confidential information for personal gain.

(d)

Subsection (b) of this section applies only to an employee who is compensated, as of the last date of state employment, at or above the amount prescribed by the General Appropriations Act for step 1, salary group 17, of the position classification salary schedule, including an employee who is exempt from the state's position classification plan.

(e)

For subsections (b)-(d) of this section:

(1)

"Participated" means to have taken action as an employee through decision, approval, disapproval, recommendation, giving advice, investigation, or similar action.

(2)

"Particular matter" means a specific investigation, application, request for a ruling or determination, rulemaking proceeding, contract, claim, charge, or other proceeding.

(f)

A vendor or potential vendor may not[ : ] offer, give, or agree to give an employee anything of value.

(g)

When an actual or potential violation of subsections (b)-(f) of this section is discovered, the person involved shall promptly file a written statement concerning the matter with an appropriate supervisor. The person may also request written instructions and disposition of the matter.

(h)

If an actual violation of subsections (b)-(g) of this section occurs or is not disclosed and remedied, the employee involved may be either reprimanded, suspended, or dismissed. The vendor or potential vendor may have a pending bid or proposal rejected, be barred from receiving future contracts and/or have an existing contract canceled.

§111.5.Complaints.

Actual consumers, service recipients or persons contracting with the commission shall be provided notice of the commission's name, the mailing address and the telephone number where complaints may be directed to the commission's Customer Service Representative. Notice of this information [ to such consumers, service recipients or persons contracting with the commission ] shall be effective if provided by any of the following methods:

(1)

[ By ] Notice - typed or stamped notice placed on or attached to each invoice, billing statement, contract or agreement between the commission and consumers, service recipients or persons contracting with the commission.

(2)

[ By ] Notice - posting notice at locations on the commission's premises accessible to the commission's consumers, service recipients or persons contracting with the commission.

(3)

[ By ] Notice - written notice from the executive director of the commission to the directors of all other state agencies and entities that are consumers, service recipients or persons contracting with the commission.

§111.6.Petition for Adoption of Rules.

(a)

Any interested person or organization may petition the commission requesting the adoption or amendment of a rule.

(b)

For the purpose of interpreting this section, the term "rule" shall have the same meaning as contained in Government Code, Chapter 2001, §2001.003.

(c)

Petitions for adoption of rules must be submitted in writing and directed to the commission's executive director.

(d)

The petitioner may either hand deliver the petition to the commission's central office at 1711 San Jacinto Boulevard, Austin, Texas, 78701, or mail the petition to P.O. Box 13047, Austin, Texas 78711-3047.

(e)

For purposes of calculating days under this section, the date of submission of a petition under this section shall be the date the petition is hand delivered to the commission, or if the petition was sent by mail or carrier, the date it is date-stamped according to regular agency incoming mail procedures.

(f)

The petition must include the following minimum requirements:

(1)

specify or otherwise make clear that the petition is made pursuant to the provisions of the Administrative Procedure Act;

(2)

clearly state the body or substance of the rule requested for adoption, and, if appropriate, relate the requested rule to an adopted rule or rules of the commission;

(3)

contain the full name and address of the petitioner; and

(4)

be signed by the petitioner.

(g)

The executive director or the executive director's designee, shall:

(1)

acknowledge receipt of the petition in writing and include in the letter the date the petition was received; and

(2)

communicate with the petitioner, if necessary, to clarify the requested rule or to clarify other relevant information contained in the petition.

(h)

Not later than the 60th day after the date of submission of a petition under this section, the executive director shall either:

(1)

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

(2)

initiate rulemaking procedures and inform the petitioner of the date rule action by the commission is scheduled pursuant to Government Code, Title 10, Chapter 2001.

(i)

The executive director shall provide copies of all petitions, whether denied or approved, to the commissioners prior to scheduled commission meetings for review.

§111.7.Negotiation and Mediation of Certain Contract Disputes.

(a)

The commission adopts by reference the rules of the Office of the Attorney General in Title 1, Part 3, Texas Administrative Code, Chapter 68 relating to Negotiation and Mediation of Certain Contract Disputes. The Office of the Attorney General rules are located at the Office of the Secretary of State's internet website: www.sos.state.tx.us/tac/index.html.

(b)

The rules set forth a process to permit parties to structure a negotiation or mediation in a manner that is most appropriate for a particular dispute regardless of contract's complexity, subject matter, dollar amount, or method and time of performance.

(c)

The adoption of this rule is required by the Texas Government Code, Chapter 2260, §2260.052(c).

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 August 11, 2000.

TRD-200005663

Ann Dillon

General Counsel

General Services Commission

Earliest possible date of adoption: September 24, 2000

For further information, please call: (512) 463-3960


Subchapter C. COST OF COPIES OF PUBLIC INFORMATION

1 TAC §111.62

The amendment and new rules are proposed under the authority of the Texas Government Code, Title 10, Subtitle A, §2001.021, Texas Government Code, Title 10, Subtitle D, §§2152.060, 2152.105, 2155.076, Texas Government Code, Title 10, Subtitle F, §2260.052, and Texas Government Code, Chapter 552, Subchapter F, which provides the General Services Commission with the authority to promulgate rules necessary to implement the sections. Cross Reference to Statute. The following codes are affected by these rules: Government Code, Title 10, Subtitle D, Government Code, Title 10, Subtitle F, Chapter 2260, and Texas Government Code, Chapter 552, Subchapter F.

§111.62.Definitions.

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

(1)

Actual cost--The sum of all direct costs plus a proportional share of overhead or indirect costs. Actual cost should be determined in accordance with generally accepted methodologies. [ To determine actual costs, governmental bodies may utilize the cost methodology adopted by the Council on Competitive Government. ]

(2)

Client/Server System--A combination of two or more computers that serve a particular application through sharing processing, data storage, and end-user interface presentation. PCs located in a LAN environment containing file servers fall into this category as do applications running in an X-window environment where the server is a UNIX based system.

(3)

Commission--The General Services Commission.

(4)

Governmental Body--As defined by §552.003 of the Public Information Act, means:

(A)

a board, commission, department, committee, institution, agency, or office that is within or is created by the executive or legislative branch of state government and that is directed by one or more elected or appointed members;

(B)

a county commissioners court in the state;

(C)

a municipal governing body in the state;

(D)

a deliberative body that has rulemaking or quasi-judicial power and that is classified as a department, agency, or political subdivision of a county or municipality;

(E)

a school district board of trustees;

(F)

a county board of school trustees;

(G)

a county board of education;

(H)

the governing board of a special district;

(I)

the governing body of a nonprofit corporation organized under Chapter 76, Acts of the 43rd Legislature, First Called Session, 1933 (Article 1434a, Texas Civil Statutes), that provides a water supply or wastewater service, or both, and is exempt from ad valorem taxation under the Tax Code, §11.30; and

(J)

the part, section, or portion of an organization, corporation, commission, committee, institution, or agency that spends or that is supported in whole or in part by public funds; and

(K)

does not include the judiciary.

(5)

Mainframe Computer--A computer located in a controlled environment and serving large applications and/or large numbers of users. These machines usually serve an entire organization or some group of organizations. These machines usually require an operating staff. IBM and UNISYS mainframes, and large Digital VAX 9000 and VAX Clusters fall into this category.

(6)

Midsize Computer--A computer smaller than a Mainframe Computer that is not necessarily located in a controlled environment. It usually serves a smaller organization or a sub-unit of an organization. IBM AS/400 and Digital VAX/VMS multi-user single-processor systems fall into this category.

(7)

Nonstandard copy- Under §§111.61 through 111.71 of this title, a [ A ]copy of public information that is made available to a requestor in any format other than a standard paper copy. Microfiche, microfilm, diskettes, magnetic tapes, CD-ROM are examples of nonstandard copies. Paper copies larger than 8 1/2 by 14 inches (legal size) are also considered nonstandard copies.

(8)

Standalone PC--An IBM compatible PC, Macintosh or Power PC based computer system operated without a connection to a network.

(9)

Standard paper copy-- Under §§111.61 through 111.71 of this title, a copy of public information that is a [ A ] printed impression on one side of a piece of paper that measures up to 8 1/2 by 14 inches. Each side of a piece of paper on which an impression is made is counted as a single copy. A piece of paper that is printed on both sides is counted as two copies.

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 August 11, 2000.

TRD-200005664

Ann Dillon

General Counsel

General Services Commission

Earliest possible date of adoption: September 24, 2000

For further information, please call: (512) 463-3960


Part 15. TEXAS HEALTH AND HUMAN SERVICES COMMISSION

Chapter 355. MEDICAID REIMBURSEMENT RATES

Subchapter J. PURCHASED HEALTH SERVICES

2. MEDICAID HOME HEALTH PROGRAM

1 TAC §355.8021

The Health and Human Services Commission (HHSC) proposes an amendment to §355.8021 concerning reimbursement methodology for home health services. Section 355.8021 is being amended to change the reimbursement methodology for skilled nursing visits, home health aide visits, physical therapy, and occupational therapy services provided by enrolled home health agencies. Currently, these services are reimbursed according to a reasonable cost methodology and are cost settled using final cost settlements from Medicare. Effective October 1, 2000, the Medicare program is scheduled to begin reimbursing home health services utilizing a prospective payment system (PPS). Since Medicaid will no longer be able to rely on Medicare's cost reports, the Medicaid reimbursement methodology will be changed from cost reimbursement to a fee schedule.

Don Green, Chief Financial Officer, has determined that for each year of the first five years the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. This amendment does not have any foreseeable implications relating to cost or revenues of local governments.

Mr. Green has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of enforcing the section will be to provide services to Medicaid recipients that are appropriately reimbursed. There will be no effect on small business or micro-businesses to comply with this section as proposed. This was determined by interpretation of the rule that small businesses and micro-businesses will not be required to alter their business practices in order to comply with the rule as proposed. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There will be no impact on local employment.

A public hearing will be held at 1:30 p.m., Central Daylight Savings Time, on Monday, August 28, 2000, in the Public Hearing Room, Building 3, first floor of the Riata Crossing Facility, 12555 Riata Vista Circle, Austin, Texas 78727-6404, to accept comments on the proposal.

Comments on the proposal may be submitted to Jeff Phelps, Program Administrator, Medicaid Reimbursement Division, Texas Health and Human Services Commission, P.O. Box 13247, Austin, Texas 78711-3247 or at (512) 424-6657, within 30 days of publication of this proposal in the Texas Register . To comply with federal regulations, a copy of the proposal is being sent to each Texas Department of Human Services (DHS) office where it will be available for public review upon request.

The amendment is proposed under the Human Resources Code, §32.021 and the Texas Government Code, §531.021, which provide the Health and Human Services Commission with the authority to adopt rules to administer the state's medical assistance program.

The proposed amendment affects Chapter 32 of the Human Resources Code and Chapter 531 of the Government Code.

§355.8021.Reimbursement Methodology for Home Health Services.

(a)

Reimbursement methodology for skilled nursing visits, home health aid visits, physical therapy and occupational therapy services provided by [ a ] enrolled home health agencies [ agency ]. Participating providers are reimbursed the maximum allowable fee for services established by the Health and Human Services Commission. The maximum allowable fee is based upon the lesser of the following:

(1)

the billed amount; or [ Except for expendable medical supplies and DME, authorized home health services provided for eligible Medicaid recipients are reimbursed the reasonable cost of supplying the service, applying the same standards, cost reporting period, and cost reimbursement principles currently used in computing reimbursement for comparable services under Title XVIII Medicare. ]

(2)

the fee schedule established by the department: [ Reasonable cost will be based on annual reports covering a 12-month period of operation (based on a provider's reporting year) required by Medicare. ]

(A)

the fee schedule established by the department is determined from a representative sample of provider; and

(B)

participating providers must, at the request of the department, provide information needed to determine the fee schedule.

(b)

Reimbursement methodology for expendable medical supplies provided by enrolled home health agencies and DME providers/suppliers. Participating providers are reimbursed the maximum allowable fee for expendable medical supplies established by the department. The maximum allowable fee is based upon the lesser of the following:

(1)

the billed amount; or

[ (2)

the Medicare fee schedule as defined in §29.301 of this title (relating to General); or]

(2)

[ (3) ] the expendable medical supply acquisition fee as defined in §29.301 of this title (relating to General) .

(c)

(No change.)

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

Filed with the Office of the Secretary of State, on August 14, 2000.

TRD-200005681

Marina Henderson

Executive Deputy Commissioner

Texas Health and Human Services Commission

Earliest possible date of adoption: September 24, 2000

For further information, please call: (512) 458-7236


Chapter 371. MEDICAID FRAUD AND ABUSE PROGRAM INTEGRITY

Subchapter E. OPERATING AGENCY RESPONSIBILITIES RULE

1 TAC §371.1000

The Health and Human Services Commission (HHSC) proposes to amend 1 T.A.C. §371.1000, which requires a health and human services agency that operates part of the Medicaid program to re-enroll health care providers by September 1, 1999.

Background and Summary of Factual Basis for the Rules

The rule change was prompted by the establishment of an electronic method of re-enrollment currently supported through an Internet web site operated by the National Heritage Insurance Company. Section 10 of H.B. 2896 authorized HHSC to extend the re-enrollment period if an electronic method of re-enrollment is established and to extend that date if HHSC determines a significant number of providers have not met the re-enrollment deadline.

Section-by-Section Explanation

The current rule requires re-enrollment to be accomplished by September 1, 1999. The proposed amendment revises this date, consistent with § 10 of House Bill No. 2896, 76th Leg., to December 31, 2000.

Public Benefit

Don Green, Chief Financial Officer, has determined that during the first five years that the proposed rules are in effect, the public will benefit from adoption of the amendment because the amendment will accommodate electronic re-enrollment of providers and validate re-enrollments occurring after September 1, 1999. The amendment will also ensure that providers that have not re-enrolled to date are given the benefit of electronic re-enrollment and the extension of time to re-enroll.

Fiscal Note

Don Green, Chief Financial Officer, has determined that for the first five years that the proposed rules are in effect, there will be no additional costs to health and human services agencies.

Small and Micro-business Impact Analysis

The proposed amendment will not result in additional costs to persons required to comply with the rules, nor does the amendment have any anticipated adverse effect on small or micro-businesses. The amendment will not affect local employment.

Regulatory Analysis

The Health and Human Services Commission has determined that the proposed amendment is not a "major environmental rule" as defined by § 2001.0225, Government Code. "Major environmental rule" is defined to mean a rule the specific intent of which is to protect the environment or reduce risks to human health from environmental exposure and that may adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state. The proposed rule is not specifically intended to protect the environment or reduce risks to human health from environmental exposure.

Takings Impact Assessment

The Health and Human Services Commission has conducted a takings impact assessment for these proposed rules under Texas Government Code, §2007.043. HHSC has determined that this action does not restrict or limit an owner's right to their property that would otherwise exist in the absence of governmental action and therefore does not constitute a taking. The proposed amendment is administrative in nature and does not impose any new regulatory requirements. The proposed rule is reasonably taken to fulfill requirements of state law.

Public Comment

Public comment may be submitted in writing to Steve Aragon, General Counsel, Health and Human Services Commission, by mail addressed to P.O. Box 13247, Austin, Texas 78711, or by facsimile to (512) 424-6587. Comments must be submitted by 5:00 p.m., September 25, 2000. Further information may be obtained by calling Steve Aragon at (512) 424-6603.

Statutory Authority

The amendment is proposed under the Texas Government Code, chapter 351, §531.033, which authorizes the Commissioner of Health and Human Services to adopt rules necessary to carry out the Health and Human Services Commission's duties under chapter 531.

The amendment affects chapter 531 of the Texas Government Code and chapter 32 of the Texas Human Resources Code.

§371.1000. Provider Re-enrollment or Provider Contract Modification.

By [ September 1, 1999, ] December 31, 2000, each agency operating part of the Medicaid program must, at the agency's discretion, either re-enroll each provider in the Medicaid program under a new contract approved by the Health and Human Services Commission or modify each existing provider contract using language approved by the Health and Human Services Commission.

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 August 14, 2000.

TRD-200005701

Marina S. Henderson

Executive Deputy Commissioner

Texas Health and Human Services Commission

Earliest possible date of adoption: September 24, 2000

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