TITLE 40.SOCIAL SERVICES AND ASSISTANCE

Part 1. TEXAS DEPARTMENT OF HUMAN SERVICES

Chapter 19. NURSING FACILITY REQUIREMENTS FOR LICENSURE AND MEDICAID CERTIFICATION

The Texas Department of Human Services (DHS) proposes the REPEAL of §19.205, concerning supplemental licensure information; §19.1105, concerning documentation requirements for dietary consultant; and §19.1911, concerning contents of the clinical record; proposes AMENDMENTS to §19.1, concerning basis and scope; §19.101, concerning definitions; §19.201, concerning criteria for licensing; §19.204, concerning application requirements; §19.209, concerning exclusion from licensure; §19.210, concerning change of ownership; §19.216, concerning license fees; §19.301, concerning applicable codes and standards; §19.311, concerning fire service and access; §19.314, concerning fire alarms, detection systems, and sprinkler systems; §19.321, concerning heating, ventilating, and air-conditioning systems (HVAC); §19.326, concerning safety operations; §19.340, concerning mechanical requirements; §19.342, concerning miscellaneous details; §19.403, concerning notice of rights and services; §19.408, concerning grievances; §19.419, concerning directives and durable powers of attorney for health care; §19.502, concerning transfer and discharge in Medicaid-Certified facilities; §19.602, concerning incidents of abuse and neglect reportable to the Texas Department of Human Services (DHS) by facilities; §19.703, concerning social services general requirements; §19.1109, concerning food intake; §19.1206, concerning physician signatures; §19.1601, concerning infection control; §19.1921, concerning general requirements for a nursing facility; §19.2004, concerning determinations and actions pursuant to inspections; §19.2006, concerning reporting incidents and complaints; §19.2112, concerning administrative penalties; §19.2310, concerning nursing facility ceases to participate; §19.2322, concerning allocation, reallocation, and decertification requirements; §19.2403, concerning utilization review process; §19.2500, concerning Preadmission Screening and Resident Review (PASARR); §19.2601, vendor payment (items and services included); and §19.2604, vendor payment information; and proposes NEW §19.205, concerning probationary license; and §19.1911, concerning contents of the clinical record, in its Nursing Facility Requirements for Licensure and Medicaid Certification chapter.

The purpose of the proposal is to comply with legislation from the 76th legislative session, which requires DHS to establish a probationary license; allow an exclusion from licensure when a trustee has been appointed to a facility and trust fund monies are expended, other than for the trustee's salary; increase the trust fund to $10 million; require facilities to disclose drug testing policies; require facilities to offer flu vaccinations to employees and residents and pneumonia vaccinations to residents; require facilities to search the Employee Misconduct Registry, in addition to the Nurse Aide Registry, before hiring an employee; prohibit retaliation against volunteers; and require facilities to inform residents of policies regarding advance directives and establish a $500 administrative penalty for failure to do so. DHS also developed more specific rules regarding administrative penalties, which will provide greater consistency in terms of administering them. In addition, a change to the Social Security Act requires changes to Medicaid rules regarding facilities which voluntarily withdraw from the Medicaid program. The department also made clarifying changes to the Life Safety Code (construction) section of the rules.

Eric M. Bost, commissioner, has determined that for the first five-year period the sections are in effect there will be fiscal implications for state government as a result of enforcing or administering the sections. The effect on state government for the first five-year period the sections will be in effect is an estimated additional cost $0 in fiscal year (FY) 2000; $93,214 in FY 2001; $466,148 in FY 2002; $466,148 in FY 2003; and $466,148 in FY 2004. There will be no fiscal implications for local government as a result of enforcing or administering the sections.

Mr. Bost also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of enforcing the sections will be stronger nursing facilities, particularly ones which require facilities to inform the public about facility drug testing and advance directive policies; to offer flu vaccinations to employees and residents and pneumonia vaccinations to residents; to search the Employee Misconduct Registry, in addition to the Nurse Aide Registry, before hiring an employee; and to prohibit retaliation against volunteers. There will be an economic effect on large, small, or micro businesses that operate nursing facilities that are required to comply with the proposed sections. The rule requiring that facilities offer their employees flu vaccinations will cost all facilities approximately $5 per employee for those employees who accept the vaccination. This cost should be offset by the benefits derived from having healthy employees reporting to work during flu season. The increase in the cap on the nursing and convalescent trust fund means an increase in the amount nursing facilities pay into the fund, from $3.04 to $12.38 per bed. Both of these rule changes resulted from legislation, so there does not appear to be a way to lessen the effect.

Questions about the content of this proposal may be directed to Susan Syler at (512) 438-3111 in DHS's Long Term Care Section. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-085, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714- 9030, within 30 days of publication in the Texas Register .

Under §2007.003(b) of the Texas Government Code, the department has determined that Chapter 2007 of the Government Code does not apply to this rule. Accordingly, the department is not required to complete a takings impact assessment regarding this rule.

Subchapter A. BASIS AND SCOPE.

40 TAC §19.1

The amendment is proposed under the Health and Safety Code, Chapter 242, which authorizes the department to license and regulate nursing facilities.

The amendment implements the Health and Safety Code, §§242.001 - 242.268.

§19.1. Basis and scope.

(a)

(No change.)

(b)

Scope. The Nursing Facility Requirements for Licensure and Medicaid Certification contain the requirements that an institution must meet in order to be licensed as a nursing facility and also to qualify to participate in the Medicaid program. The requirements serve as a basis for survey activities for licensure and certification.

(1)-(3)

(No change.)

(4)

Additional documents that a facility may need for reference include, but are not limited to:

(A)-(G)

(No change.)

(H)

Food Establishment Rules [ Service Guidelines ] (TDH);

(I) -(J)

(No change.)

(K)

Methicillin-Resistant [ Methicillin-Resistent ] Staphylococcus Aureus: A Protocol for Infection Control (TDH); and

(L)

(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 February 18, 2000.

TRD-200001252

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 2, 2000

For further information, please call: (512) 438-3108


Subchapter B. DEFINITIONS

40 TAC §19.101

The amendment is proposed under the Health and Safety Code, Chapter 242, which authorizes the department to license and regulate nursing facilities.

The amendment implements the Health and Safety Code, §§242.001 - 242.268.

§19.101. Definitions.

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

(1)-(23)

(No change.)

(24)

Controlling person - - A person with the ability, acting alone or in concert with others, to directly or indirectly, influence, direct, or cause the direction of the management, expenditure of money, or policies of a nursing facility or other person. [ A controlling person does not include a person, such as an employee, lender, secured creditor, or landlord, who does not exercise any influence or control, whether formal or actual, over the operation of a facility. ] A controlling person includes:

(A)-(B)

(No change.)

(C)

any other individual who, because of a personal, familial, or other relationship with the owner, manager, landlord, tenant, or provider of a nursing facility, is in a position of actual control or authority with respect to the nursing facility, without regard to whether the individual is formally named as an owner, manager, director, officer, provider, consultant, contractor, or employee of the facility. This does not include an employee, lender, secured creditor, or landlord, or other person who does not exercise formal or actual influence or control over the operation of an assisted living facility.

(25)-(152)

(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 February 18, 2000.

TRD-200001253

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 2, 2000

For further information, please call: (512) 438-3108


Subchapter C. NURSING FACILITY LICENSURE APPLICATION PROCESS

40 TAC §§19.201, 19.204, 19.205, 19.209, 19.210, 19.216

The amendments and new section are proposed under the Health and Safety Code, Chapter 242, which authorizes the department to license and regulate nursing facilities.

The amendments and new section implement the Health and Safety Code, §§242.001 - 242.268.

§19.201. Criteria for Licensing.

(a)-(b)

(No change.)

(c)

No person may apply for a probationary license, a license, change of ownership, increase in capacity, or renewal of a nursing facility license without making a disclosure of information as required in this section.

(d)-(j)

(No change.)

§19.204. Application Requirements.

(a)

Applications. All applications must be made on forms prescribed by and available from the Texas Department of Human Services (DHS).

(1)

Each application must be completed in accordance with DHS instructions, and it must be signed and notarized.

(2)

Changes to information required in the application must be reported to DHS, as required by §19.1918 of this title (relating to Disclosure of Ownership).

(b)-(d)

( No change.)

§19.205. Probationary License.

The initial license issued to a license holder who has not previously held a license is a probationary license and is effective for one year. A permanent license may be issued only after DHS finds that the license holder and any other person listed in §19.201(f) of this title (relating to Criteria for Licensing) continues to meet the nursing facility requirements and submits an application requesting a permanent license with the applicable license fee. The facility must also be able to pass an inspection unless an inspection is not required as provided by §242.047, Health and Safety Code.

§19.209. Exclusion from Licensure.

(a)

The Texas Department of Human Services, after providing notice and opportunity for a hearing, may exclude a person from eligibility for a license if the person or any person described in §19.201(e) of this title (relating to Criteria for Licensing) has substantially failed to comply with the rules in this chapter.

[ (b) ]

Exclusion of a person must extend for at least two years, but not more that ten years.

(b)

A license holder or controlling person who operates a nursing facility or an assisted living facility for which a trustee was appointed and for which emergency assistance funds, other than funds to pay the expenses of the trustee, were used is subject to exclusion from eligibility for the:

(1)

issuance of an original license for a facility for which the person has not previously held a license; or

(2)

renewal of the license of the facility for which the trustee was appointed.

§19.210. Change of Ownership.

(a)

During the license term, a license holder may not transfer the license as a part of the sale or other transfer of ownership of the facility. Prior to the sale or other transfer of ownership of the facility, the license holder must notify the Texas Department of Human Services (DHS) that a change of ownership is about to take place. A change of ownership is a [ change ]:

(1)

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

(2)

change in the federal tax payer identification number ; or [ . ]

(3)

relinquishment by the license holder of the management of the facility.

(b)-(d)

(No change.)

§19.216. License Fees.

(a)

Basic fees.

(1)

Probationary license. The license fee is $125 plus $5 for each unit of capacity or bed space for which a license is sought.

(2)

[ (1) ] Initial and renewal license. The license fee is $250 plus $10 for each unit of capacity or bed space for which a license is sought. The fee must be paid with each initial and renewal of license application.

(3)

[ (2) ] Increase in bed space. An approved increase in bed space is subject to an additional fee of $10 for each unit of capacity or bed space.

(4)

[ (3) ] Change of administrator. A facility must report a change of administrator within 30 days of the effective date of the change by submitting a change of administrator application and a $20 fee to the Texas Department of Human Services's (DHS's) Facility Enrollment Section [ that hires a new administrator must notify the Texas Department of Human Services (DHS), Long Term Care-Regulatory, Facility Enrollment Section, not later than the 30th day after the date on which the change became effective by submitting a change of administrator application and paying a $20 change of administrator fee to DHS ].

(5)

[ (4) ] Background information fee. The background information fee is $50.

(b)

Trust fund fee.

(1)

(No change.)

(2)

DHS charges and collects an annual fee from each facility licensed under the Texas Health and Safety Code, Chapter [ Chapters ] 242[ , 247, and 252 ] each calendar year if the amount of the nursing and convalescent trust fund is less than $10,000,000 [ $500,000 ]. The fee is based on a monetary amount specified for each licensed unit of capacity or bed space , not to exceed $20 annually, and is in an amount sufficient to provide not more than $10,000,000 [ $500,000 ] in the trust fund. In calculating the fee, the amount will be rounded to the next whole cent.

(3)

DHS may charge and collect a fee more than once a year only if necessary to ensure that the mount in the nursing and convalescent trust fund is sufficient to allow required disbursements.

(c)

(No change.)

Filed with the Office of the Secretary of State, on February 18, 2000.

TRD-200001255

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 2, 2000

For further information, please call: (512) 438-3108


40 TAC §19.205

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Department of Human Services or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeal is proposed under the Health and Safety Code, Chapter 242, which authorizes the department to license and regulate nursing facilities.

The repeal implements the Health and Safety Code, §§242.001 - 242.268.

§19.205. Supplemental Licensure Information.

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 18, 2000.

TRD-200001254

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 2, 2000

For further information, please call: (512) 438-3108


Subchapter D. FACILITY CONSTRUCTION

40 TAC §§19.301, 19.311, 19.314, 19.321, 19.326, 19.340, 19.342

The amendments are proposed under the Health and Safety Code, Chapter 242, which authorizes the department to license and regulate nursing facilities.

The amendments implement the Health and Safety Code, §§242.001 - 242.268.

§19.301. Applicable Codes and Standards.

(a)-(b)

(No change.)

(c)

The following codes, standards, or guidelines generally govern their subject areas for existing construction:

(1)-(8)

(No change.)

(9)

All boilers not exempted by the Texas Health and Safety Code, §755.022, must be inspected and certified for operation by the Texas Department of Licensing and Regulation.

§19.311. Fire Service and Access.

(a)

The facility must be served by a paid or volunteer fire department.

(1)

The fire department must provide written assurance to the licensing agency that the fire department can respond to an emergency at the facility within an appropriately prompt time for the travel conditions involved.

(2)

The facility must have an annual inspection by the local fire marshal and maintain documentation of such an inspection at the facility.

(b)-(d)

(No change.)

§19.314. Fire Alarms, Detection Systems, and Sprinkler Systems.

Fire alarms, detection systems, and sprinkler systems must be as required by the Life Safety Code, the National Fire Protection Association (NFPA) 72, and NFPA 13.

(1)-(3)

(No change.)

(4)

Smoke detector sensitivity must be checked within one year after installation and every alternate year thereafter in accordance with NFPA 72. Documentation, including as-built installation drawings, operation and maintenance manuals, and a written sequence of operation must be available for examination by the Texas Department of Human Services (DHS).

(5)

[ (4) ] The fire alarm system must be designed so that whenever the general alarm is sounded by activation of any device (such as manual pull, smoke sensor, sprinkler, or kitchen range hood extinguisher) the following will occur automatically:

(A)

smoke and fire doors which are held open by an approved device must be released to close;

(B)

air handlers (air conditioning/heating distribution fans) serving three or more rooms or any means of egress must shut down immediately;

(C)

smoke dampers must close; and

(D)

the alarm-initiating location must be clearly indicated on the fire alarm control panel(s) and all auxiliary panels.

(6)

[ (5) ] Consistent fire alarm bells or horns must be located throughout the building for audible coverage. Flashing alarm lights (visual alarms) must be installed to be visible in corridors and public areas including dining rooms and living rooms.

(7)

[ (6) ] A master control panel which indicates location of alarm and trouble conditions (by zone or device) must be visible at the main nurse station. All control panels must be listed in accordance with the provisions of the Underwriters Laboratories, Inc. (UL) for intended use, such as manual, automatic, and water-flow activation. Alarm and trouble zoning must be by smoke compartments and by floors in multi-story facilities.

(8)

[ (7) ] Remote annunciator panels, indicating location of alarm initiation by zone or device and common trouble signals, must be located at auxiliary or secondary nurses stations on each floor or major subdivision of single story facilities and indicate the alarm condition of adjacent zones and the alarm conditions at all other nurse stations.

(9)

[ (8) ] Manual pull stations must be provided at all exits, living rooms, dining rooms, and at or near the nurse stations.

(10)

[ (9) ] The NFPA 13 sprinkler system must be monitored for flow and tamper conditions by the fire alarm system.

(11)

[ (10) ] The kitchen range hood extinguisher must be interconnected with the fire alarm system. This interconnection may be a separate zone on the panel or combined with other initiating devices located in the same zone as the range hood is located.

(12)

[ (11) ] Partial sprinkler systems provided only for hazardous areas must be interconnected to the fire alarm system and comply with the Life Safety Code. Each partial system must have a valve with a supervisory switch to sound a supervisory signal, water-flow switch to activate the fire alarm, and an end- of-line test drain.

§19.321. Heating, Ventilating, and Air-conditioning Systems (HVAC).

(a)

The heating system must be capable of maintaining a temperature of not less than 71 degrees Fahrenheit at the resident level in all resident-use areas.

(1)

Auxiliary heating devices permanently installed, such as heat strips in ducts, electric ceiling-mounted heating units, and electric baseboards, may be used to augment a central heating system as approved by the Texas Department of Human Services (DHS). See §19.705 of this title (relating to Environment).

(2)

All gas heating systems must be checked prior to the heating season for proper operation and safety by persons who are licensed or approved by the State of Texas to inspect such equipment. A record of this service must be maintained by the facility. Any unsatisfactory conditions must be corrected promptly.

(b)-(n)

(No change.)

§19.326. Safety Operations.

(a)

The facility must have a written emergency preparedness and response plan . [ with procedures ] Procedures to be followed in an internal or external disaster [ and for the care of casualties ] should be attached to the plan . The plan must address, at a minimum, the eight core functions of emergency management, which are: direction and control; warning (how the facility will be notified of emergencies and who they will notify); communication (with whom and by what mechanism); sheltering arrangements; evacuation (destinations, routes); transportation; health and medical needs; and resource management (supplies, staffing, emergency equipment, records). Plans should address those natural, technological, and man-made emergencies that could affect the facility and [ Plans dealing with natural disasters, such as hurricanes, floods, and tornadoes, ] must be coordinated with the local emergency management coordinator. Information about the local emergency management coordinator may be obtained from the office of the local mayor or county judge.

(1)-(6)

(No change.)

(b)-(e)

(No change.)

(f)

Emergency generators, if required or provided, must be maintained in operating condition at all times. These must be inspected and run, under load, for at least 30 minutes each week. A signed or initialed record or log must be kept on file by the facility. The log should document maintenance performed, time taken to transfer load, and length of run times. The condition and proper operation of the emergency egress lighting should also be checked at this time.

(g)-(p)

(No change.)

§19.340. Mechanical Requirements.

The design of the mechanical systems must be done by or under the direction of a registered professional (mechanical) engineer approved by the Texas State Board of Registration for Professional Engineers to operate in Texas, and the parts of the plans and specifications covering mechanical design must bear the legible seal of the engineer. Building services pertaining to utilities; heating, ventilating, and air-conditioning systems; vertical conveyors; and chutes must be in accordance with the Life Safety Code. Required plumbing fixtures must be in accordance with the Life Safety Code and §19.334 of this title relating to Architectural Space Planning and Utilization) in specific use areas.

(1)

Plumbing.

(A)-(O)

(No change.)

(P)

All boilers not exempted by the Texas Health and Safety Code §755.022 must be inspected and certified for operation by The Texas Department of Licensing and Regulation.

(2)

Heating, ventilating, and air-conditioning systems.

(A)-(B)

(No change.)

(C)

Systems using liquefied petroleum gas fuel must meet the requirements of the Railroad Commission of Texas and NFPA 58 Liquefied Petroleum Gases [ 54 ].

(D)-(P)

(No change.)

(3)-(4)

(No change.)

§19.342. Miscellaneous Details.

(a)

Safety related details. A high degree of safety for the occupants is needed to minimize accidents which are more apt to occur with the elderly and/or infirm residents in a nursing facility. Consideration must be given to the fact that many will have impaired vision, hearing, spatial perception, and ambulation.

(1)-(6)

(No change.)

(7)

Grab bars must be provided at all residents' toilets, showers, tubs, and sitz baths. The bars must be 1- 1/4 to 1-1/2 inches in diameter and must have 1-1/2 [ 1/2 ] inch clearance to walls. Bars must have sufficient strength and anchorage to sustain a concentrated load of 250 pounds. Grab bar standards must comply with standards adopted under the Americans with Disabilities Act of 1990.

(8)

Handrails must be provided on both sides of corridors used by residents. A clear distance of 1- 1/2 [ 1/2 ] inches must be provided between the handrail and the wall. Handrails must be securely mounted to withstand downward forces of 250 pounds. Handrails may be omitted on wall segments less than 18 inches. Handrails must be mounted 33 inches to 36 inches above the floor, and must comply with standards adopted under the Americans with Disabilities Act.

(9)-(10)

(No change.)

(b)

(No change.)

Filed with the Office of the Secretary of State, on February 18, 2000.

TRD-200001256

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 2, 2000

For further information, please call: (512) 438-3108


Subchapter E. RESIDENT RIGHTS

40 TAC §§19.403, 19.408, 19.419

The amendments are proposed under the Health and Safety Code, Chapter 242, which authorizes the department to license and regulate nursing facilities.

The amendments implement the Health and Safety Code, §§242.001 - 242.268.

§19.403. Notice of Rights and Services.

(a)

(No change.)

(b)

The facility must also inform the resident, upon admission and during the stay, in a language the resident understands, of the following:

(1)-(2)

(No change.)

(3)

the Human Resources Code, Title 6, Chapter 102; or a written list of the rights and responsibilities contained in the Human Resources Code, Title 6, Chapter 102; [ and ]

(4)

a written description of the services available through the Office of the State Long Term Care Ombudsman, Texas Department on Aging. This information must be made available to each facility by the ombudsman program. Facilities are responsible for reproducing this information and making it available to residents, their families, and legal representatives ; and [ . ]

(5)

a written statement describing the facility's policy for the drug testing of employees who have direct contact with residents.

(c)-(l)

(No change.)

§19.408. Grievances.

(a)

(No change.)

(b)

A nursing facility may not retaliate or discriminate against a resident or a volunteer because [ if ] the resident, the resident's guardian , a volunteer, or any other person:

(1)

makes a complaint or files a grievance concerning the facility.

(2)

reports a violation of law, including a violation of laws or regulations regarding nursing facilities; or

(3)

initiates or cooperates in an investigation or proceeding of a governmental entity relating to care, services, or conditions at the nursing facility.

§19.419. Directives and Durable Powers of Attorney for Health Care.

(a)

(No change.)

(b)

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

(1)

the facility must maintain written policies regarding the implementation of advance directives. The policies must include a clear and precise statement of any procedure the facility is unwilling or unable to provide or withhold in accordance with an advance directive;

(2)

[ 1 ] upon admission, all individuals must be provided with the following written information:

(A)

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

(B)

the nursing facility's policies respecting the implementation of these rights including the written policies regarding the implementation of advance directives; [ . ]

(3)

[ (2) ] the nursing facility must document in the resident's clinical record whether or not the individual has executed an advance directive;

(4)

[ (3) ] the nursing facility must not condition the provision of care or otherwise discriminate against an individual based on whether or not the individual has executed an advance directive;

(5)

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

(6)

[ (5) ] the facility must provide, individually or with others, for education for staff and the community on issues concerning advance directives. For the community, this may include, but is not limited to, newsletters, articles in the newspaper, local news reports, or commercials. For educating staff, this may include, but is not limited to, in-service programs;

(7)

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

(8)

[ (7) ] when an individual is in a comatose or otherwise incapacitated state, and therefore is unable to receive information or articulate whether he has executed an advance directive : [ , the family, surrogate, or other concerned person must receive the information concerning advance directives. The facility must provide this information to the resident once he is no longer incapacitated; and ]

(A)

written information regarding advance directives, including facility policies regarding the implementation of advance directives, must be provided in the following order of preference, to:

(i)

the resident's legal guardian;

(ii)

a person responsible for the resident's health care decisions;

(iii)

the resident's spouse;

(iv)

the resident's adult child;

(v)

the resident's parents; or

(vi)

the person admitting the resident.

(B)

if the facility is unable, after diligent search, to locate an individual listed under subparagraph (A) of this paragraph, the facility is not required to give notice;

(9)

if a resident, who was incompetent or otherwise incapacitated and unable to receive information regarding advance directives, including written policies regarding the implementation of advance directives, later becomes able to receive the information, the facility must provide the written information at the time the individual becomes able to receive the information; and

(10)

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

(c)

Failure to inform the resident of facility policies regarding the implementation of advance directives will result in an administrative penalty of $500.

(d)

[ (c) ] Nursing facilities that provide services to children must ensure that:

(1)

prior to admission to the facility, the primary physician, who has been providing care to the child, has discussed advance directives with the family or guardian and documented this discussion; and

(2)

the decision made by the family or guardian regarding advance directives is addressed in the comprehensive care plan (see §19.802 of this title (relating to Comprehensive Care Plans)).

Filed with the Office of the Secretary of State, on February 18, 2000.

TRD-200001257

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 2, 2000

For further information, please call: (512) 438-3108


Subchapter F. ADMISSION, TRANSFER, AND DISCHARGE RIGHTS IN MEDICAID-CERTIFIED FACILITIES

40 TAC §19.502

The amendment is proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs; the Health and Safety Code, Chapter 242, which authorizes the department to license and regulate nursing facilities; 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 amendment implements the Health and Safety Code, §§242.001 - 242.268, and the Human Resources Code, §§22.001 - 22.024 and §§32.001 - 32.040.

§19.502. Transfer and Discharge in Medicaid-certified Facilities.

(a)

(No change.)

(b)

Transfer and discharge requirements. The facility must permit each resident to remain in the facility and must not transfer or discharge the resident from the facility unless:

(1)-(6)

(No change.)

(7)

the facility ceases to operate or participate in the program which pays for the resident's care. If the facility voluntarily withdraws from participation in Medicaid, but continues to provide nursing facility services:

(A)

the facility's voluntary withdrawal from Medicaid is not an acceptable basis for the transfer or discharge of residents who were residing in the facility on the day before the effective date of the withdrawal (including those residents who were not entitled to Medicaid assistance as of such day);

(B)

for individuals who begin residence in the facility after the effective date of the withdrawal, the facility must provide notice orally and in a prominent manner in writing on a separate page of the admission agreement at the time the resident begins residence and document receipt in writing, signed by the individual, and separate from other documents signed by the individual of the following information:

(i)

The facility is not participating in the Medicaid program with respect to these residents.

(ii)

The facility may transfer or discharge these residents if they are unable to pay the charges of the facility, even though the resident may have become eligible for Medicaid nursing facility services.

(c)-(e)

(No change.)

(f)

Contents of the notice. For nursing facilities, the written notice specified in subsection (d) of this section must include the following:

(1)-(4)

(No change.)

(5)

the name, address, and telephone number of the regional representative of the Office of the State Long Term Care Ombudsman, Texas Department on Aging, and of the toll-free number of the Texas Long Term Care Ombudsman, 1-800-252-2412 [ or 1-800-252-2312 ];

(6)

in the case of a resident with mental illness or mental retardation, the address and phone number of the state mental health/mental retardation authority, which is: Texas Department of Mental Health and Mental Retardation, P.O. Box 12668, Austin, Texas 78711-2668, 1-800-252-8154 [ (512) 323-3282 ]; and the phone number of the agency responsible for the protection and advocacy of persons with mental illness or mental retardation and/or related conditions, which is: Advocacy Incorporated, 7800 Shoal Creek Boulevard, Suite 175-E, Austin, Texas 78757, 1-800-252-9108 [ (512) 454-4819 ].

(g)-(j)

(No change.)

Filed with the Office of the Secretary of State, on February 18, 2000.

TRD-200001258

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 2, 2000

For further information, please call: (512) 438-3108


Subchapter G. RESIDENT BEHAVIOR AND FACILITY PRACTICE

40 TAC §19.602

The amendment is proposed under the Health and Safety Code, Chapter 242, which authorizes the department to license and regulate nursing facilities.

The amendment implements the Health and Safety Code, §§242.001 - 242.268.

§19.602.Incidents of Abuse and Neglect Reportable to the Texas Department of Human Services (DHS) by Facilities.

(a)

Any facility staff member who has cause to believe that the physical or mental health or welfare of a resident has been or may be adversely affected by abuse, neglect, or exploitation caused by another person must report the abuse, neglect, or exploitation . [ , which includes conduct or conditions resulting in serious accidental injury to residents or hospitalization of residents. Conduct or conditions means a facility practice, actions/inaction by staff or circumstances within a facility resulting in: ]

[ (1)

serious accidental injury to residents; or ]

[ (2)

hospitalization of residents. ]

(b)

(No change.)

(c)

Each employee of a facility must sign a statement which states:

(1)

(No change.)

(2)

under the Health and Safety Code, Title 4, §242.133, the employee has a cause of action against a facility, its owner(s) or employee(s) if he is suspended, terminated, disciplined, or discriminated or retaliated against as a result of:

(A)

reporting to the employee's supervisor, the administrator, DHS, or a law enforcement agency a violation of law, including a violation of laws or regulations regarding nursing facilities; or [ any action described in subsections (a) and (b) of this section to DHS or a law enforcement agency; ]

[ (B)

reporting the abuse or neglect or other complaint to the person's supervisors; or ]

(B)

[ (C) ] for initiating or cooperating in any investigation or proceeding of a governmental entity relating to care, services, or conditions at the nursing facility.

(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 February 18, 2000.

TRD-200001259

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 2, 2000

For further information, please call: (512) 438-3108


Subchapter H. QUALITY OF LIFE

40 TAC §19.703

The amendment is proposed under the Health and Safety Code, Chapter 242, which authorizes the department to license and regulate nursing facilities.

The amendment implements the Health and Safety Code, §§242.001 - 242.268.

§19.703.Social Services General Requirements.

(a)

The facility must provide medically-related social services to attain the highest practicable physical, mental, or psychosocial well- being of each resident. See also §19.901 of this title (relating to Quality of Care) for information concerning psychosocial functioning.

(1)

(No change.)

(2)

A facility of 120 beds or less must employ or contract with a qualified social worker (or in lieu thereof, a social worker who is licensed by the Texas State Board of Social Work Examiners [ as prescribed by the Human Resources Code, Chapter 50, §50.016(a)) ], and who meets the requirements of subsection (b)(2) of this section) to provide social services a sufficient amount of time to meet the needs of the residents.

(b)

A qualified social worker is an individual who is licensed, including a temporary or provisional license [ or provisionally licensed ], by the Texas State Board of Social Work Examiners as prescribed by Chapter 50 of the Human Resources Code, and who has at least:

(1)-(2)

(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 February 18, 2000.

TRD-200001260

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 2, 2000

For further information, please call: (512) 438-3108


Subchapter L. DIETARY SERVICES

40 TAC §19.1105

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Department of Human Services or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeal is proposed under the Health and Safety Code, Chapter 242, which authorizes the department to license and regulate nursing facilities.

The repeal implements the Health and Safety Code, §§242.001 - 242.268.

§19.1105.Documentation Requirements for Dietary Consultant.

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 18, 2000.

TRD-200001261

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 2, 2000

For further information, please call: (512) 438-3108


40 TAC §19.1109

The amendment is proposed under the Health and Safety Code, Chapter 242, which authorizes the department to license and regulate nursing facilities.

The amendment implements the Health and Safety Code, §§242.001 - 242.268.

§19.1109.Food Intake.

Food intake of residents must be monitored and recorded as follows.

(1)

Deviations from normal food and fluid intake must be recorded in the clinical records. See also §19.1911(12)(B)(vi) [ §19.1911(12)(b)(vi) ] of this title (relating to Contents of the Clinical Record) for information concerning dietary intake and clinical records.

(2)

(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 February 18, 2000.

TRD-200001262

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 2, 2000

For further information, please call: (512) 438-3108


Subchapter M. PHYSICIAN SERVICES

40 TAC §19.1206

The amendment is proposed under the Health and Safety Code, Chapter 242, which authorizes the department to license and regulate nursing facilities.

The amendment implements the Health and Safety Code, §§242.001 - 242.268.

§19.1206.Physician Signatures.

Signature stamps and faxed signed documents are acceptable if used as described in §19.1912(f)(2) [ §19.1912(g)(2) ] of this title (relating to Additional Clinical Record Service Requirements).

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 18, 2000.

TRD-200001263

Paul Leche

General Counsel

Texas Department of Human Services

Earliest possible date of adoption: April 2, 2000

For further information, please call: (512) 438-3108


Subchapter Q. INFECTION CONTROL

40 TAC §19.1601

The amendment is proposed under the Health and Safety Code, Chapter 242, which authorizes the department to license and regulate nursing facilities.

The amendment implements the Health and Safety Code, §§242.001 - 242.268.

§19.1601.Infection Control.

The facility must establish and maintain an infection control program designed to provide a safe, sanitary, and comfortable environment and to help prevent the development and transmission of disease and infection.

(1)

(No change.)

(2)

Preventing spread of infection.

(A)

When the infection control program determines that a resident needs isolation to prevent the spread of infection, the facility must isolate the resident. Residents with communicable disease must be provided acceptable accommodations according to current practices and policies for infection control. See §19.1(b)(4)(I) [ §19.1(b)(7)(K) ] of this title (relating to Basis and Scope) for information concerning the Centers for Disease Control Guidelines publications.

(B)-(E)

(No change.)

(3)

Vaccinations. Facilities are required to offer vaccinations in accordance with an immunization schedule adopted by the Texas Department of Health.

(A)

Pneumococcal vaccine for residents. The facility must offer pneumococcal vaccination to all residents 65 years of age or older who have not received this immunization and to residents younger than 65 years of age, who have not received this vaccine, but are candidates for vaccination because of chronic illness. Pneumococcal vaccine must be offered both to residents who currently reside in the facility and to new residents upon admission. Vaccination must be completed unless the vaccine is medically contraindicated by a physician or the resident refuses the vaccine. Vaccine administration must be in accordance with the recommendations of the Advisory Committee on Immunization Practices of the Centers for Disease Control and Prevention at the time of the vaccination.

(B)

Influenza vaccinations for residents and employees. The facility must offer influenza vaccine to residents and employees in contact with residents, unless the vaccine is medically contraindicated by a physician or the employee or resident has refused the vaccine.

(i)

Influenza vaccinations for all residents and employees in contact with residents must be completed by November 30 of each year. Employees hired or residents admitted after this date and during the influenza season (through February of each year) must receive influenza vaccinations, unless medically contraindicated by a physician or the employee or resident refuses the vaccine.

(ii)

Vaccine administration must be in accordance with the recommendations of the Advisory Committee on Immunization Practices of the Centers for Disease Control and Prevention at the time of the most recent vaccination.

(C)

Documentation of receipt or refusal of vaccination. Immunization records must be maintained for each employee in contact with residents and must show the date of the receipt or refusal of each annual influenza vaccination. The medical record for each resident must show the date of the receipt or refusal of the annual influenza vaccination and the pneumococcal vaccine.

(4)

[ (3) ] Linens. Personnel must handle, store, process, and transport linens so as to prevent the spread of infection. [ See also §19.1726 of this title (relating to Linen). ]

(5)

[ (4) ] The Quality Assessment and Assurance Committee as described in §19.1917 of this title (relating to Quality Assessment and Assurance) will monitor the infection control program.

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 18, 2000.

TRD-200001264

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 2, 2000

For further information, please call: (512) 438-3108


Subchapter T. ADMINISTRATION

40 TAC §19.1911

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Department of Human Services or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeal is proposed under the Health and Safety Code, Chapter 242, which authorizes the department to license and regulate nursing facilities.

The repeal implements the Health and Safety Code, §§242.001 - 242.268.

§19.1911.Contents of the Clinical Record.

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 18, 2000.

TRD-200001265

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 2, 2000

For further information, please call: (512) 438-3108


40 TAC §19.1911, §19.1921

The new section and the amendment are proposed under the Health and Safety Code, Chapter 242, which authorizes the department to license and regulate nursing facilities.

The new section and the amendment implement the Health and Safety Code, §242.001-242.268.

§19.1911.Contents of the Clinical Record.

The clinical record of each resident must contain:

(1)

Sufficient information to identify and care for the resident, to include at a minimum:

(A)

full name of resident;

(B)

full home/mailing address;

(C)

social security number;

(D)

health insurance claim numbers, if applicable;

(E)

date of birth; and

(F)

clinical record number, if applicable.

(2)

A record of the resident's assessments.

(3)

The comprehensive, interdisciplinary plan of care and services provided (see also §19.802 of this title (relating to Comprehensive Care Plans)).

(4)

The results of any preadmission screening and annual resident review conducted by the Texas Department of Human Services (DHS) or the Texas Department of Mental Health and Mental Retardation (TXMHMR).

(5)

Progress notes from all health care practitioners involved in the resident's care.

(6)

Any directives or durable powers of attorney as described in §19.419 of this title (relating to Directives and Durable Powers of Attorney for Health Care).

(7)

Discharge information in accordance with §19.803 of this title (relating to Discharge Summary (Discharge Plan of Care)) and a physician discharge summary, to include, at least, dates of admission and discharge, admitting and discharge diagnoses, condition on discharge, and prognosis, if applicable.

(8)

At admission or within 14 days, documentation of an initial medical evaluation, including history, physical examination, diagnoses and an estimate of discharge potential and rehabilitation potential and documentation of an annual medical examination.

(9)

Authentication of any hospital diagnoses.

(A)

This may be in the form of a signed hospital discharge summary, a signed report from the resident's hospital or attending physician, or a transfer form signed by the physician.

(B)

The facility is allowed 14 workdays after admission to receive this information from the hospital or transferring facility. If the author of such reports is not the resident's attending physician, then the attending physician must acknowledge the report in writing by co-signing the report at his or her next scheduled visit.

(10)

The physician's signed and dated orders, including medication, treatment, diet, restorative and special medical procedures, and routine care to maintain or improve the resident's functional abilities (required for the safety and well-being of the resident). Changes cannot be made either on a handwritten or computerized physician's order sheet after the orders have been signed by the physician unless space allows for additional orders below the physician's signature, including space for the physician to sign and date again.

(11)

Arrangements for the emergency care of the resident in accordance with §19.1204 of this title (relating to Availability of Physician for Emergency Care).

(12)

Observations made by nursing personnel according to the time frames specified in §19.1010 of this title (relating to Nursing Practices). Facility staff must ensure that the observations show at least the following:

(A)

items as specified on the Resident Assessment Instrument and the Texas Nursing Facility Client Assessment Review and Evaluation (CARE) form; and

(B)

current information including:

(i)

PRN medications and results;

(ii)

treatments and any notable results;

(iii)

physical complaints, changes in clinical signs and behavior, mental and behavioral status, and all incidents or accidents;

(iv)

flow sheets which may include bathing, restraint observation and/or release documentation, elimination, fluid intake, vital signs, ambulation status, positioning, continency status and care, and weight;

(v)

the resident's ability to participate in activities of daily living as defined in §19.1010(e)(1) of this title (relating to Nursing Practices); and

(vi)

dietary intake to include deviations from normal diet, rejection of substitutions, and physician's ordered snacks and/or supplemental feedings.

(13)

The date and hour all drugs and treatments are administered.

(14)

Documentation of special procedures performed for the safety and well-being of the resident must be included in the clinical record.

§19.1921.General Requirements for a Nursing Facility.

(a)-(d)

(No change.)

(e)

Each licensed facility must conspicuously and prominently post the information listed in paragraphs (1)-(11) [ (1)-(10) ] of this subsection in an area of the facility that is readily and customarily available to the public. The posting must be in a manner that each item of information is directly visible at a single time. In the case of a licensed section that is part of a larger building or complex, the posting must be in the licensed section or public way leading thereto. Any exceptions must be approved by the Texas Department of Human Services (DHS). The following items must be posted:

(1)-(9)

(No change.)

(10)

for a facility which advertises, markets, or otherwise promotes that it provides services to residents with Alzheimer's disease and related disorders, a disclosure statement describing the nature of its care or treatment of residents with Alzheimer's disease and related disorders in accordance with §19.204(b)(4) [ §19.204(c)(8) ] of this title (relating to Application [ Applicant Disclosure ] Requirements).

(11)

at each entrance to the facility, a sign in English and Spanish, that it is unlawful to carry a handgun on the premises. The sign must appear in contrasting colors with block letters at least one inch in height and be displayed in a conspicuous manner, clearly visible to the public.

(f)

For facilities serving residents with Alzheimer's disease and related disorders, failure to post the required disclosure statement, as specified in subsection (e)(10) [ (e)(6) ] of this section, will result in an administrative penalty in accordance with §19.2112 of this title (relating to Administrative Penalties).

(g)-(l)

(No change.)

(m)

Before a facility hires an employee, the facility must search the employee misconduct registry established under §253.007, Health and Safety Code, and the DHS nurse aide registry to determine whether the individual is designated in either registry as having abused, neglected, or exploited a resident or a consumer of a facility. Both registries can be contacted at 1-800-452-3934.

(1)

A facility may not employ a person who is listed in either registry as having abused, neglected, or exploited a resident or a consumer of a facility.

(2)

A facility must notify its employees in writing at the time of employment:

(A)

about the employee misconduct registry; and

(B)

that a person may not be employed if listed on the registry.

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 18, 2000.

TRD-200001266

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 2, 2000

For further information, please call: (512) 438-3108


Subchapter U. INSPECTIONS, SURVEYS, AND VISITS

40 TAC §19.2004, §19.2006

The amendments are proposed under the Health and Safety Code, Chapter 242, which authorizes the department to license and regulate nursing facilities.

The amendments implement the Health and Safety Code, §242.001-242.268.

§19.2004.Determinations and Actions Pursuant to Inspections.

(a)-(b)

(No change.)

[(c)

Violations found during complaint investigations will be discussed with the facility management at the exit conference. If deficiencies are cited, a list of the deficiencies will be sent to the facility within 10 working days. The source of the complaint will not be revealed.]

(c)

[ (d) ] At the conclusion of an inspection , [ or ] survey, or investigation, the violations will be discussed in an exit conference with the facility's management. A written list of the violations will be left with the facility at the time of the exit conference; any additional violation that may be determined during review of field notes or preparation of the official final list [ (when the official final list was not issued at the exit conference) ] will be communicated to the facility in writing within ten working days of the exit conference . DHS will give the facility an additional exit conference regarding the additional violations. [ , and the facility will have ten working days to reply before the additional violation is made a part of the permanent record. Copies of any narratives or similar papers written to further describe the conditions will be furnished to the facility. ]

(d)

[ (e) ] Upon receipt of the final statement of violations, the facility will have 10 working days to submit an acceptable plan of correction to the regional director, except plans of correction under §19.2112(i) of this title (relating to Administrative Penalties). An acceptable plan of correction must address the following areas:

(1)

how corrective action will be accomplished for those residents affected by the violation(s);

(2)

how the facility will identify other residents with the potential to be affected by the same violation(s);

(3)

what measures will be put into place or systemic changes made to ensure the violation(s) will not recur; and

(4)

how the facility will monitor its corrective actions to ensure that the violation(s) are being corrected and will not recur.

(e)

[ (f) ] A clear and concise summary in nontechnical language of each licensure inspection or complaint investigation will be provided by DHS at the time the report of contact or similar document is provided.

§19.2006.Reporting Incidents and Complaints.

(a)

Each incident or complaint report must reflect the reporting person's belief that a resident has been or will be abused or neglected and must contain the following information:

(1)

the address or phone number of the person making the report so that the Texas Department of Human Services (DHS) can contact the person for any additional information, except for an anonymous report;

(2)

[ (1) ] the name and address of the resident;

(3)

[ (2) ] the name and address of the person responsible for the care of the resident, if available;

(4)

[ (3) ] information required by DHS guidelines, when the report is an incident; and

(5)

[ (4) ] any other relevant information. Relevant information includes the reporter's or complainant's basis or cause for reporting and his or her belief that a resident's physical or mental health or welfare has been or may be adversely affected by abuse or neglect caused by another person or persons, and any other information DHS considers relevant for the report.

(b)-(c)

(No change.)

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

Filed with the Office of the Secretary of State, on February 18, 2000.

TRD-200001267

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 2, 2000

For further information, please call: (512) 438-3108


Subchapter V. ENFORCEMENT

2. LICENSING REMEDIES

40 TAC §19.2112

The amendment is proposed under the Health and Safety Code, Chapter 242, which authorizes the department to license and regulate nursing facilities.

The amendment implements the Health and Safety Code, §242.001-242.268.

§19.2112.Administrative Penalties.

(a)-(e)

(No change.)

(f)

Administrative penalties may be levied for each violation found in a single survey. Each day of a continuing violation constitutes a separate violation. The administrative penalties for each day of a continuing violation cease on the date the violation is corrected. A violation that is the subject of a penalty is presumed to continue on each successive day until it is corrected. The date of correction alleged by the facility in its written plan of correction will be presumed to be the actual date of correction unless it is later determined by DHS that the correction was not made by that date or was not satisfactory.

(1)

Table of administrative penalties. The following table contains the gradations of penalties in accordance with the relative seriousness of the violation. [ The penalties for a violation of the requirement to post notice of the suspension of admissions, additional reporting requirements found at §19.601(a) of this title (relating to Resident Behavior and Facility Practice), or residents' rights cannot exceed $1,000 a day for each violation, unless the violation of a resident's right also violates a rule in Subchapter H, Quality of Life, or Subchapter J, Quality of Care. ]

Figure: 40 TAC §19.2112(f)(1)

[ Figure: 40 TAC §19.2112(f) ]

(2)

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

(A)

Severity.

(i)

Substantial compliance means a level of violation that has the potential for causing no more than a minor negative impact on the resident.

(ii)

Minimal impact means a level of violation that places the resident's health and safety at risk resulting in minor harm with limited consequences or effects.

(iii)

Negative outcome means a level of violation that places the resident's health and safety at risk of actual harm that has the potential for long-term effects.

(iv)

Immediate threat means a level of violation that places the resident's health and safety at risk of, or is likely to cause, serious harm or death, or has caused serious harm, injury, or death.

(B)

Scope.

(i)

Isolated means one or a very limited number of residents are affected or one or a very limited number of staff are involved, or the situation has occurred only occasionally or in a very limited number of locations.

(ii)

Pattern means more than a very limited number of residents are affected, or more than a very limited number of staff are involved, or the situation has occurred in several locations, or the same residents have been affected by repeated occurrences of the same deficient practice. The effect of the deficient practice is not found to be pervasive throughout the facility.

(iii)

Widespread means a large number of residents in the facility have the potential to be affected and the survey team identifies the deficient practice as pervasive throughout the facility or a systemic failure in the facility has affected or could affect a large number of residents across the facility and is, therefore, considered pervasive.

(g)

The penalties for a violation of the requirement to post notice of the suspension of admissions, additional reporting requirements found at §19.601(a) of this title (relating to Resident Behavior and Facility Practice), or residents' rights cannot exceed $1,000 a day for each violation, unless the violation of a resident's right also violates a rule in Subchapter H of this chapter (relating to Quality of Life), or Subchapter J of this chapter (relating to Quality of Care).

(h)

[ (g) ] No facility will be penalized because of a physician's or consultant's nonperformance beyond the facility's control or if documentation clearly indicates the violation is beyond the facility's control.

(i)

[ (h) ] DHS may issue a preliminary report regarding an administrative penalty. Within 10 days of the issuance of the preliminary report, DHS will give the facility written notice of the recommendation for an administrative penalty. The notice will include:

(1)

a brief summary of the violations;

(2)

a statement of the amount of penalty recommended;

(3)

a statement of whether the violation is subject to correction under §19.2114 of this title (relating to Right to Correct) and if the violation is subject to correction, a statement of:

(A)

the date on which the facility must file a plan of correction (POC) to be approved by DHS; and

(B)

the date on which the POC must be completed to avoid assessment of the penalty; and

(4)

a statement that the facility has a right to a hearing on the violation, the amount of the penalty, or both.

(j)

[ (i) ] Within 20 days after the date on which written notice of recommended assessment of a penalty is sent to a facility, the facility must give DHS written consent to the penalty, make a written request for a hearing, or if the violation is subject to correction, submit a plan of correction in accordance with §19.2114 of this title. If the facility does not make a response within the 20-day period, DHS will assess the penalty.

(k)

[ (j) ] The procedures for notification of recommended assessment, opportunity for hearing, actual assessment, payment of penalty, judicial review, and remittance will be in accordance with Health and Safety Code, §§242.067 - 242.069. Hearings will be held in accordance with DHS's formal hearing procedures in Chapter 79 of this title (relating to Legal Services). Interest on penalties is governed by Health and Safety Code §242.069(g).

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 18, 2000.

TRD-200001268

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 2, 2000

For further information, please call: (512) 438-3108


Subchapter X. REQUIREMENTS FOR MEDICAID-CERTIFIED FACILITIES

40 TAC §19.2310, §19.2322

The amendments are proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs; the Health and Safety Code, Chapter 242, which authorizes the department to license and regulate nursing facilities; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The amendments implement the Health and Safety Code, §242.001-242.268, and the Human Resources Code, §§22.001-22.024 and 32.001-32.040.

§19.2310.Nursing Facility Ceases to Participate.

A nursing facility may lose its status as a participating facility if any of the following conditions are met:

(1)

the facility withdraws voluntarily from the program. The participation agreement for facilities which voluntarily withdraw from the program remains in effect with respect to services provided to residents residing in the facility the day before the effective date of the withdrawal, in accordance with §1919(c)(2)(F) of the Social Security Act. The owner and administrator must request withdrawal, in writing, from the Texas Department of Human Services (DHS) at least 30 days before the withdrawal date;

(2)-(5)

(No change.)

§19.2322.Allocation, Reallocation, and Decertification Requirements.

(a)-(d)

(No change.)

(e)

Exemptions. If the NFO meets all criteria, DHS may grant the following exemptions from the policy stated in subsection (c) of this section.

(1)-(4)

(No change.)

(5)

Teaching facilities. DHS may exempt a nursing facility from the procedures in subsection (c) of this section if the facility:

(A)

is affiliated with a state-supported medical school;

(B)

is located on land owned or controlled by the state-supported medical school; and

(C)

serves as a teaching facility for physicians and related health care professionals. [ Facilities approved and contracted to operate as teaching nursing facilities from March 1, 1989, through January 1, 1993, must continue to meet their affiliation agreements. ]

(6)-(9)

(No change.)

(f)-(j)

(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 February 18, 2000.

TRD-200001269

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 2, 2000

For further information, please call: (512) 438-3108


Subchapter Y. MEDICAL REVIEW AND RE-EVALUATION

40 TAC §19.2403

The amendment is proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs; the Health and Safety Code, Chapter 242, which authorizes the department to license and regulate nursing facilities; 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 amendment implements the Health and Safety Code, §242.001-242.268, and the Human Resources Code, §§22.001-22.024 and 32.001-32.040.

§19.2403.Utilization Review Process.

The Utilization Review Committee determines the need for nursing facility care by evaluating the recipient's medical and/or nursing needs based on facility documentation required by the Texas Department of Human Services (DHS). The medical necessity determination must be made before receiving vendor payment for service delivery, except as provided in §19.2408 of this title (relating to Retroactive Medical Necessity Determinations) and §19.2413 of this title (relating to Reconsideration of Medical Necessity Determination (MN) and Effective Dates).

(1)-(2)

(No change.)

(3)

To ensure that payments continue, the facility must submit all forms in a timely manner so that they are received by the Utilization Review Committee no later than the day after the expiration of the current form.

(A)-(D)

(No change.)

(E)

The Texas Department of Human Services (DHS) does not pay for the period of time between an expired form and the new effective date, unless the facility has requested and been granted a reconsideration of effective dates. See §19.2413 of this title (relating to Reconsideration of Medical Necessity Determination (MN) and Effective Dates).

(i)

(No change.)

(ii)

If the facility does not receive payment and there has been no reconsideration of effective dates granted, then restrictions apply as described in §19.2608 [ §19.1708 ] of this title (relating to Limitations on Provider Charges [ to Patients ]) when the reason for no payment is facility error.

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 18, 2000.

TRD-200001270

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 2, 2000

For further information, please call: (512) 438-3108


Subchapter Z. PREADMISSION SCREENING AND RESIDENT REVIEW (PASARR)

40 TAC §19.2500

The amendment is proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs; the Health and Safety Code, Chapter 242, which authorizes the department to license and regulate nursing facilities; 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 amendment implements the Health and Safety Code, §242.001-242.268, and the Human Resources Code, §§22.001-22.024 and 32.001-32.040.

§19.2500.Preadmission Screening and Resident Review (PASARR).

(a)-(e)

(No change.)

(f)

Limitations on provider charges. Nursing facilities which admit or retain individuals with a diagnosis of mental illness, mental retardation, or a related condition who have not been screened by DHS or who admit or retain individuals who do not need nursing facility services and who require specialized services will not be reimbursed for that individual, as described in §19.2608 [ §19.1708 ] of this title (relating to Limitations on Provider Charges [ to Patients ]).

(g)

(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 February 18, 2000.

TRD-200001271

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 2, 2000

For further information, please call: (512) 438-3108


Subchapter AA. VENDOR PAYMENT

40 TAC §19.2601, §19.2604

The amendments are proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs; the Health and Safety Code, Chapter 242, which authorizes the department to license and regulate nursing facilities; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The amendments implement the Health and Safety Code, §242.001-242.268, and the Human Resources Code, §§22.001-22.024 and 32.001-32.040.

§19.2601.Vendor Payment (Items and Services Included).

(a)-(c)

(No change.)

(d)

If a resident has requested and freely chosen to participate in an activity, or to have an item or service provided that is not included, or is different than that provided, in the daily vendor rate, then the resident may be charged for the activity, item, or service.

(1)

When documentation is present that supports the above criteria, and that is required by §19.404(d)(5) [ §19.404(g)(5) ] of this title (relating to Protection of Resident Funds), the amount may be paid from the resident's trust fund.

(2)

(No change.)

(e)-(f)

(No change.)

§19.2604.Vendor Payment Information.

(a)-(d)

(No change.)

(e)

Days are defined as 24-hour periods extending from midnight to midnight. Payment is computed in terms of whole days, even though the recipient may have been in a nursing facility only a fractional part of the day of entrance. ( See §19.2601(e) [ see §19.2601(m) ] of this title (relating to Vendor Payment (Items and Services Included)).

(f)-(h)

(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 February 18, 2000.

TRD-200001272

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 2, 2000

For further information, please call: (512) 438-3108


Part 3. TEXAS COMMISSION ON ALCOHOL AND DRUG ABUSE

Chapter 141. GENERAL PROVISIONS

40 TAC §§141.51 - 141.55

The Texas Commission on Alcohol and Drug Abuse proposes new §§141.51 - 141.55 concerning General Provisions. These sections contain information regarding notice of a claim, agency counterclaim, timetable for negotiations and contested case hearings, conduct of negotiations and mediation.

These new sections are proposed to establish a process for negotiating and mediating certain contract disputes as required in Chapter 2260 of the Government Code. These sections describe the process and timetable for filing a claim of breach of contract; explain the steps involved if the commission files a counterclaim; establish time limits for negotiations and contested case hearings; specify the steps that must be taken prior to a contested case hearing; spell out the circumstances under which a case may be submitted to the State Office of Administrative Hearings; describe how negotiations may be conducted; stipulate that mediation is an alternative and explain how that process will be conducted.

Jim McDade, Interim Executive Director, has determined that for the first five-year period the rules are in effect there will be no fiscal implications for state or local government as a result of enforcing the rules.

Mr. McDade has also determined that for each year of the first five years the rules are in effect the anticipated public benefit will be a well-defined process for settling certain contract disputes through negotiation or mediation. There is no additional effect on small businesses. There is no anticipated economic cost to persons required to comply with the proposed amendments; however, there may be costs involved for individuals who use the process described to address a contract dispute.

Comments on the proposal may be submitted to Tamara Allen, Rules Manager, Texas Commission on Alcohol and Drug Abuse, P.O. Box 80529, Austin, Texas, 78708-0529. Comments must be received no later than 30 days from the date the proposal is published in the Texas Register .

The new sections are proposed under the Texas Health and Safety Code, Title 6, Subtitle B, §461.012(a)(15) which provides the Texas Commission on Alcohol and Drug Abuse with the authority to adopt rules governing the functions of the commission, including rules that prescribe the policies and procedures followed by the commission in administering any commission programs.

The code affected by the proposed new sections is the Texas Health and Safety Code, Chapter 461.

§141.51.Notice of Claim.

(a)

To file a claim of breach of contract under Government Code, Chapter 2260, the contractor must deliver written notice of the claim to the commission's Executive Director.

(b)

The notice must be signed by the contractor's authorized representative and delivered by hand, certified mail return receipt requested, or other verifiable delivery service.

(c)

The claim must specifically describe:

(1)

the nature of the alleged breach of contract, including the date of the event which forms the basis of the claim and the contract provision(s) breached;

(2)

the damages claimed, including the amount and the method used to calculate them; and

(3)

the legal basis for filing the claim (i.e., breach of contract), including the relationship between the alleged breach and the damages claimed.

(d)

The contractor may submit supporting documentation with the notice of the claim.

(e)

The notice must be delivered no later than 180 calendar days after the date of the event that forms the basis of the claim.

(f)

Any amount(s) owed by the contractor shall be deducted from the total damages claimed. This includes amounts owed for work not performed or work not performed in substantial compliance with the terms of the contract. The total amount of damages (after deduction of amount owed by contractor) may not exceed the contracted amount or include consequential or similar damages, exemplary damages, any damages based on an unjust enrichment theory, attorney's fees or home office overhead.

§141.52.Agency Counterclaim.

(a)

The commission may file a counterclaim of breach of contract.

(b)

Written notice of counterclaim must be delivered to the representative of the contractor who signed the notice of claim of breach of contract.

(c)

The notice must be delivered by hand, certified mail return receipt requested, or other verifiable delivery service.

(d)

The notice must specifically describe:

(1)

the nature of the counterclaim;

(2)

a description of the damages or offsets, including the amount and the method used to calculate them; and

(3)

the legal theory supporting the counterclaim.

(e)

The notice of counterclaim must be delivered to the contractor no later than 90 calendar days after receipt of notice of the claim.

§141.53.Timetable for Negotiations and Contested Case Hearings.

(a)

The commission's Executive Director must examine the contractor's claim and the commission's counterclaim, if any, and initiate negotiations.

(b)

Except as provided in subsection (c) of this section, negotiations shall begin no more than 60 calendar days following the latest of:

(1)

the date of termination of the contract;

(2)

the completion date in the original contract; or

(3)

the date the notice of claim of breach of contract is received by the commission.

(c)

The commission may delay the negotiations until the 181st calendar day after the date of the event giving rise to the claim of breach of contract. The commission shall give the contractor written notice of the delay and notify the contractor when it is ready to begin negotiations.

(d)

The parties must complete the negotiations as a prerequisite to a contested case hearing no later than 270 days after the commission receives the notice of claim of breach of contract. The negotiation period may be extended through a written agreement signed by the authorized representatives of each party.

(e)

The parties may agree to mediate the dispute at any time before the 270th day after the commission receives the notice of claim of breach of contract, or before the expiration of any extension agreed to in writing by the parties.

(f)

If negotiations fail to resolve the dispute, the case may be submitted to the State Office of Administrative Hearings (SOAH).

(1)

The contractor may file a request for contested case hearing with the commission if a complete settlement agreement has not been reached 270 calendar days after the date the claim is delivered to the commission, or after the expiration of any extension agreed to in writing by the parties.

(2)

The parties may agree to submit the case to SOAH before the 270th day if they have reached a partial settlement or if an impasse has been reached in the negotiations and proceeding to a contested case hearing would serve the interests of justice.

(3)

The parties may continue to negotiate or mediate after a request for contested case hearing is referred to the SOAH.

§141.54.Conduct of Negotiations.

(a)

Any limitations on the settlement authority of the representatives participating in the negotiations must be disclosed by the parties as soon as possible. To the extent possible, the parties shall select negotiators who are knowledgeable about the dispute and who are in a position to reach agreement or can credibly recommend approval of an agreement.

(b)

Negotiation may be conducted by any method, technique, or procedure authorized under the contract or agreed upon by the parties. The contractor and the commission may conduct negotiations with the assistance of one or more neutral third parties.

(c)

The parties may choose to mediate the dispute according to §141.55 of this title (relating to Mediation).

(d)

To facilitate meaningful negotiation, the parties must exchange relevant documentation that supports their claims, defenses, counterclaims or positions.

(e)

Any settlement reached during the negotiation must be put in writing and signed by representatives of the contractor and the commission. The agreement must describe any procedures that must be followed to secure final approval.

(f)

The final settlement must be documented in writing and signed by representatives of the contractor and the commission with authority to bind the respective party. If the settlement does not resolve all issues raised by the claim and counterclaim, the agreement must specifically identify the issues that are not resolved.

(g)

Unless the contractor and the commission agree otherwise, each party shall be responsible for its own costs.

§141.55.Mediation.

(a)

The contractor and the commission may agree to mediate a claim through an impartial third party. Mediation is a forum in which an impartial person facilitates communication between parties to promote reconciliation, settlement, or understanding, but does not impose his own judgment on the issues

(b)

The mediation is governed by the provisions of the Governmental Dispute Resolution Act, Government Code, Chapter 2009.

(c)

The commission and the contractor select an impartial third party that is acceptable to both. The impartial third party must:

(1)

possess the qualifications required under Civil Practice and Remedies Code, §154.052;

(2)

be subject to the standards and duties prescribed by Civil Practice and Remedies Code, §154.053; and

(3)

have the qualified immunity prescribed by Civil Practice and Remedies Code, §154.055, if applicable.

(d)

A mediation conducted under this section is confidential in accordance with Government Code, §2009.054.

(e)

A final settlement agreement signed by the commission under this section is subject to or excepted from required disclosure in accordance with Government Code, Chapter 552.

(f)

Unless the contractor and the commission agree otherwise, the costs of the mediator shall be divided equally between the parties and each party shall be responsible for its own costs.

(g)

Any limitations on the settlement authority of the representatives participating in the negotiations must be disclosed by the parties before mediation begins.

(h)

Any settlement reached during the mediation must be put in writing and signed by representatives of the contractor and the commission. The agreement must describe any procedures that must be followed to secure final approval.

(i)

The final settlement must be documented in writing and signed by representatives of the contractor and the commission with authority to bind the respective party. If the settlement does not resolve all issues raised by the claim and counterclaim, the agreement must specifically identify the issues that are not resolved.

(j)

If mediation does not resolve the claim to the satisfaction of the contractor, the contractor may file a request that the claim be referred to the State Office Of Administrative Hearings pursuant to subchapter C, Chapter 2260, Government Code. The request for referral must be filed according to the timetable described in §141.53 of this title (relating to Timetables for Negotiations and Contested Case Hearings).

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 16, 2000.

TRD-200001220

Karen Pettigrew

General Counsel

Texas Commission on Alcohol and Drug Abuse

Earliest possible date of adoption: April 2, 2000

For further information, please call: (512) 349-6794


Part 20. TEXAS WORKFORCE COMMISSION

Chapter 800. GENERAL ADMINISTRATION

Subchapter D. INCENTIVE AWARD RULES

40 TAC §§800.101, 800.102, 800.112 - 800.115, 800.118, 800.120

The Texas Workforce Commission (Commission) proposes new §800.120 relating to the Workforce Investment Act (WIA) Local Incentive Awards, and proposes amendments to §800.101 relating to Scope and Purpose, §800.102 relating to Definitions, §800.112 relating to Criteria for Award, §800.113 relating to Non-Monetary Incentive Awards, §800.114 relating to Monetary Incentive Awards, §800.115 relating to Incentive Policy Adjustment Model, and §800.118 relating to Distribution of Incentive Awards.

BACKGROUND AND PURPOSE

Sections 800.101, 800.102, 800.112, 800.113, 800.114, and 800.118 are amended to provide a uniform use of terms. Sections 800.101 and 800.102 are amended to remove references to the Job Training Partnership Act (JTPA) since the State has fully implemented WIA which replaces the JTPA. Section 800.102 is also amended to replace the definition for caseload reduction and add definitions for exemplary performance, local coordination, regional cooperation, and workforce area. The definition of core outcome measures is amended to include performance measures approved by the Legislative Budget Board. The use of the term "active TANF cases" in the definition of caseload reduction was included to clarify that caseload reduction will be evaluated based on the number of families who received Temporary Assistance for Needy Families (TANF) assistance during specific time periods. The definition for local coordination emphasizes the importance of local workforce development boards (Boards) coordinating their services with services provided by the Commission but not funded through the Boards, as well as services funded by sources other than the Commission. The list of grants contained in the proposed definition provides examples of such programs and is not intended to be an exhaustive list of all possible programs. Section 800.113 is amended to clarify that five is the maximum number of non-monetary awards available each fiscal year.

As provided by WIA (29 U.S.C. §2801 et seq. ) and the federal regulations governing the program (specifically 20 C.F.R. 665.300 et seq. ), the State is responsible for oversight of WIA programs administered by the Boards and, as appropriate, awarding incentive awards for outstanding performance by the Boards. The State has developed §800.120, the WIA incentive awards policy, to meet these statutory and regulatory requirements. A provision is included in §800.120 which provides that in determining eligibility for an incentive award, the Commission may consider whether a Board reached a specified minimum expenditure level during the previous program year. It is anticipated that a similar provision will be added to the eligibility requirements for all awards of state reserve WIA funds.

The purpose of these rules is to establish Board eligibility criteria for incentive awards reflective of the WIA principles and the principles of Texas' vision as outlined in the Texas Strategic Five-Year State Workforce Investment Plan for Title I of the Workforce Investment Act of 1998 and the Wagner-Peyser Act for the Period of July 1, 1999-June 30, 2000--Transition Plan (State Plan).

The WIA principles are streamlining services, empowering individuals, universal access, increased accountability, strong role for Boards and the private sector, and state and local flexibility. The four principles of Texas' vision are limited and efficient state government, local control, personal responsibility, and support for strong families.

Randy Townsend, Chief Financial Officer, has determined that for the first five years the rules are in effect, the following statements shall apply:

there are no additional estimated costs to the State and to local governments expected as a result of enforcing or administering the rules;

there are no estimated reductions in costs to the State or to local governments expected as a result of enforcing or administering the rules;

there are no estimated losses or increases in revenue to the State or to local governments as a result of enforcing and administering the rules;

there are no foreseeable implications relating to costs or revenues to the State or to local governments as a result of enforcing or administering the rules; and

there are no anticipated costs to persons who are required to comply with the rules as proposed.

Randy Townsend, Chief Financial Officer, has determined that there is no anticipated adverse impact on small businesses as a result of enforcing or administering these rules because small businesses (including micro-businesses) are not required to do anything as a result of these rules.

Jean Mitchell, Director of Workforce Development, has determined that the public benefit anticipated as a result of the rules as proposed shall be to encourage and reward outstanding performance by Boards and thereby improve the quality of workforce services provided in their communities.

Mark Hughes, Director of Labor Market Information, has determined that there is no foreseeable negative impact upon employment conditions in this state as a result of these proposed rules.

COMMENTS

Comments on the proposed rules may be submitted to Barbara Cigainero, Workforce Development Division, Texas Workforce Commission, 101 East 15th Street, Room 130BT, Austin, Texas 78778; Fax Number (512) 463-3424; or E-mail to barbara.cigainero@twc.state.tx.us.

Comments must be received by the Commission no later than 30 days from the date this proposal is published in the Texas Register .

The new rules are proposed under Texas Labor Code §301.061 which provides the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Texas Workforce Commission programs.

The proposal affects the Texas Labor Code, Title 4.

§800.101. Scope and Purpose.

(a)

The purpose of the incentive is to reward Local Workforce Development Boards (Boards) [ (boards) ] that meet the stated goals of the Commission to increase the local control of workforce development programs and to put Texans to work. The Board [ board ] is responsible for providing strategic planning for the workforce [ local ] area for all workforce development programs consolidated into the Texas Workforce Commission (Commission). The development of an integrated and coherent workforce development system at the local level is the primary focus of Boards [ boards ]. Thus, this policy seeks to recognize Boards [ boards ] for achieving high performance as a system, as well as high performance on behalf of the populations annually targeted by the Commission during the budget process. Incentives will emphasize accountability, high performance, continuous improvement and support the State [ state ] in achieving workforce development goals.

(b)

[ This rule incorporates by reference the existing rule for performance standards for the Job Training Partnership Act Program cited in §§805.160 - 805.165 of this title (relating to Performance Standards). ] State variation of performance standards established by the U. S. Department of Labor and/or state standards shall be published in the Texas Register on an annual basis and in a numbered TWC Letter.

§800.102. Definitions.

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

(1)

[ (7) ] Caseload Reduction -- The caseload reduction measure is calculated by first determining the annual monthly average number of active Temporary Assistance for Needy Families (TANF) cases for each county in a workforce area for each of two consecutive years. The annual monthly average number of active TANF cases for each county within the workforce area are averaged to determine the annual monthly average TANF caseload for each Board. This procedure is then repeated for the second year. This results in an annual monthly average number of active TANF cases for each Board for each year. Finally, the percentage of change between the two annual monthly averages is calculated by subtracting year two from year one; dividing the difference by year one, and then; multiplying the result by 100. This caseload reduction method does not mirror that promulgated by the Administration for Children and Families (ACF), U.S. Department of Health and Human Services, in calculating the State's caseload reduction factor used to determine the State's federally required participation rate. [ The number of percentage points by which the annual average monthly number of families receiving TANF cash assistance has declined in a Local Workforce Development Area (LWDA) during the performance period as specified in TWC Letter ID/NO WD 88-97, "Incentive Policy Adjustment Model." ]

(2)

[ (1) ] Core Outcome Measures -- Workforce Development Program performance measures adopted by the Governor and developed and recommended through the Texas Council on Workforce and Economic Competitiveness (TCWEC) , or as otherwise approved by the Legislative Budget Board . TCWEC Core Outcome Measures have been adjusted to allow for a follow-up period of six months in lieu of the one-year period established by TCWEC.

(3)

[ (2) ] Earnings Gains Measure -- The average earnings of persons employed during the post-placement follow-up periods (six months) compared to the average earnings of the same persons six months prior to program entry.

(4)

[ (3) ] Employment Measure -- The annual percentage of individuals who entered unsubsidized employment subsequent to participation in job preparation services, who remained employed (by the same or another employer) six months after entering employment.

(5)

Exemplary Performance -- Achievement by a Board on WIA performance measures in meeting one or more of the following criteria:

(A)

exceeding contract performance measures;

(B)

exceeding Commission-designated Full Service Texas Workforce Center certification standards;

(C)

implementing an innovative and successful system integration as identified in a One-Stop Innovation Plan; or

(D)

demonstrating exemplary performance through other means as determined by the Commission.

(6)

High Performance Achievement -- The top five Boards [ boards ] as ranked by performance outcomes, adjusted for regional economic conditions according to the model cited in § 800.115 of this title (relating to Incentive Policy Adjustment Model).

(7)

[ (9) ] Incentive Award Pool -- Funding that the Commission shall reserve during the annual budget process in sufficient amount to use to reward Boards [ boards ] for high performance achievement.

(8)

Local Coordination -- Boards providing leadership to ensure cooperation to achieve the most effective customer service results for its population through one or more of the following:

(A)

Memorandums of Understanding with required partners that achieve active implementation and integration of related services;

(B)

Memorandums of Understanding with partners required by WIA §121(b)(1) but not required by 40 TAC §801.27(b) that include active implementation and integration of related services;

(C)

ongoing and regular communication and training on best practices and benchmarks in building systems or delivering services; or

(D)

demonstrating local coordination through other means as determined by the Commission, including but not limited to demonstrating coordination with demonstration grants, Welfare-to-Work competitive grants, youth opportunity grants, self-sufficiency grants, and skills development grants.

(9)

[ (8) ] Local Workforce Development Boards -- A Board [ board ] that is certified by the Governor of the State of Texas, has a plan approved by the Governor of the State of Texas, and is operating multiple workforce development programs through an executed contract with the Commission.

(10)

Regional Cooperation -- Boards working together as a cooperative unit to provide excellence in customer service as a region through one or more of the following:

(A)

submitting joint plans or agreements;

(B)

engaging in ongoing and regular communication regarding best practices and working together to implement those practices by sharing ideas, data, staff, and other resources;

(C)

providing opportunities for joint training, conferences, and staff interaction; or

(D)

demonstrating regional cooperation through other means as determined by the Commission.

(11)

[ (4) ] Skill Attainment Measure -- The annual measure specified by the Commission based upon the percentage of individuals who completed skill attainment activities and acquired a skill as recognized by the State [ state ] or an industry in the form of an achievement as specified below:

(A)

Board certification of youth and adult competency levels set in consultation with area employers and, where appropriate, educational agencies, labor organizations and community-based organizations based on such factors as entry level skills and other hiring requirements; [ board certification of youth/adult competency levels as specified by Job Training Partnership Act§106a(5); ]

(B)

a high school diploma;

(C)

GED certificate;

(D)

postsecondary [ post secondary ] education degree;

(E)

occupational license;

(F)

occupational certification; or

(G)

other certifications recognized by the State [ state ].

(12)

Workforce area -- Local Workforce Development Area designated by the Governor as provided in Texas Government Code §2308.252.

(13)

[ (5) ] Workforce Development Programs -- Job-training, employment and employment-related educational programs and functions as listed in Texas Labor Code §302.021.

§800.112. Criteria for Award.

(a)

To encourage system building and accountability in meeting the needs of employers and jobseekers, the State [ state ] will apply four outcome measures to establish a high performance recognition. The four outcome measures are:

(1)-(4)

(No change.)

(b)

Each Board [ board ] will be evaluated on these core outcome measures for high performance recognition.

(c)

In order to be eligible to receive an incentive, a Board [ board ] must be within 90% of the variance range established for each contract performance measure.

§800.113. Non-Monetary Incentive Awards.

(a)

(No change.)

(b)

To be eligible for a non-monetary incentive award, a certified Board [ board ] must be one of the five outstanding Boards in the state and must have demonstrated exceptional performance in [ performers for any ] one of the four specified core outcome measures.

(c)

(No change.)

(d)

A Board [ board ] may be recognized as an outstanding performer under more than one measure.

§800.114. Monetary Incentive Awards.

(a)

Amounts from the Incentive Award Pool may be distributed to Boards [ boards ] based on high performance achievement to a targeted population, and may be used to carry out innovative workforce investment activities consistent with state and federal requirements as determined by the Commission.

(b)

A targeted population will be annually identified by the Commission in the budget process. The first three measures set out in §800.112 of this title (relating to Criteria for Award) will be applied to this targeted population, while the fourth measure will be applied as written. Monetary incentives will reward up to five top performing Boards [ boards ] based on high performance in meeting these four measures.

(c)

(No change.)

§800.115. Incentive Policy Adjustment Model.

(a)-(b)

(No change.)

(c)

The adjustment rates shall be calculated for each of the workforce areas [ LWDAs ]. The calculated rates shall be used to produce adjusted performance standard rates for each of the workforce areas [ LWDAs ].

(d)

(No change.)

§800.118. Distribution of Incentive Awards.

The monetary Incentive Award Pool will be awarded to the top five Boards [ boards ] meeting or exceeding their targeted performance measures for the targeted populations.

§800.120. WIA Local Incentive Awards.

(a)

Allocation of Funding. The Commission shall determine annually the total amount of funds to be allocated from funds available through WIA §128(a) and §133(a)(1) for local incentive awards, taking into consideration availability of funds, number of workforce areas eligible for local incentive awards funds, and other factors as identified by the Commission.

(b)

Eligibility Criteria for WIA Local Incentive Awards.

(1)

A Board may be considered for a local incentive award for exemplary performance in one or more of the following areas:

(A)

regional cooperation among workforce areas;

(B)

local coordination of activities carried out under WIA; and

(C)

exemplary performance on local performance measures established by the Commission.

(2)

In determining the amount of funds awarded to a Board, the Commission may consider such factors as:

(A)

the amount of formula WIA funds allocated to the eligible Board relative to the formula allocations to the other Boards;

(B)

for awards made during PY 2000, whether the Board can demonstrate that on July 1 it had expended 60 percent of the prior year WIA allocated funds;

(C)

for awards made during PY 2001 and succeeding program years, whether the Board can demonstrate that it has met all expenditure requirements for eligibility for awards from State activity funds found in Subchapter B of Chapter 800 of this title (relating to Allocations and Funding);

(D)

performance improvement relative to the previous year;

(E)

changes in economic conditions, population characteristics, and service delivery system in the workforce area;

(F)

the eligible Board's performance for each contract performance measure compared with other Boards;

(G)

performance in those areas considered most critical in accomplishing overall system goals;

(H)

monitoring reports and resolution activities;

(I)

achievement of goals outlined in a One-Stop Innovation Plan; and

(J)

additional criteria consistent with implementation of WIA.

(c)

Application for WIA Local Incentive Awards.

(1)

Only those Boards making a written application shall be considered for local incentive awards.

(2)

The Commission shall issue instructions annually which shall include the amount of funds available for awards, the maximum number of awards and instructions for submitting applications for local incentive awards.

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 18, 2000.

TRD-200001236

J. Randel (Jerry) Hill

General Counsel

Texas Workforce Commission

Earliest possible date of adoption: April 2, 2000

For further information, please call: (512) 463-8812