TITLE 40.SOCIAL SERVICES AND ASSISTANCE

Part 1. TEXAS DEPARTMENT OF HUMAN SERVICES

Chapter 4. MEDICAID PROGRAMS--CHILDREN AND PREGNANT WOMEN

Subchapter A. ELIGIBILITY REQUIREMENTS

40 TAC §4.1002

The Texas Department of Human Services (DHS) proposes an amendment to §4.1002, concerning application procedures, in its Medicaid Programs--Children and Pregnant Women chapter. The purpose of the amendment is to allow expedited processing of Medicaid applications from pregnant women. The new process will allow for the postponement of certain verifications for up to 30 days and allow telephone interviews. This change is based on a new state law, House Bill 2896, passed by the 76th Legislature.

Eric M. Bost, Commissioner, has determined that for the first five-year period the proposed section will be in effect, there will be no fiscal implications for state or local governments as a result of enforcing or administering the section. This change will cause a slight increase in the number of recipient months. The number of additional recipient months cannot be determined.

Mr. Bost also has determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of enforcing the section is that pregnant women will be certified for Medicaid sooner allowing them access to the prenatal care necessary to have a healthy baby. There will be no adverse economic effect on large, small, or micro-businesses because this change will allow pregnant women to access prenatal care sooner resulting in fewer complications with their pregnancies. There is no anticipated economic cost to persons who are required to comply with the proposed section.

Questions about the content of this proposal may be directed to Mary Haifley at (512) 438-2599 in DHS's Texas Works Department. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-157, 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 Section 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.

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

The amendment implements the Human Resources Code, §§32.001- 32.042.

§4.1002.Application Procedures.

Applicants for Medicaid programs follow the application procedures for Temporary Assistance for Needy Families (TANF) described in §3.301(a)(1) through 3.301(a)(3); §3.301(a)(5); §3.301(b); §3.301(c) of this title (relating to Responsibilities of Clients and the Texas Department of Human Services (DHS)); §3.302 of this title (relating to Definitions Relating to the Application Process); §3.303(a) of this title (relating to Receipt of Application--Acceptability Factors); §3.304(a) of this title (relating to Application Interview); and §3.307(a) of this title (relating to Authorized Representative), with the following exceptions:

(1)-(2)

(No change.)

(3)

Applications for Medicaid from pregnant women will be processed in an expedited manner and allow for telephone interviews and postponement of certain verifications for up to 30 days, if necessary.

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 March 2, 2000.

TRD-200001656

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 16, 2000

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


Part 5. VETERANS LAND BOARD

Chapter 176. VETERANS HOMES

40 TAC §176.7

The Veterans Land Board proposes an amendment to §176.7, concerning Admissions Requirements.

The amendment, as proposed, will eliminate the requirement that only Medicaid eligible veterans may apply for admission to a state veterans home, reduce the required residency period from two years to one year, provide for the admission of the veteran's spouse or the unmarried surviving spouse of a veteran, and eliminate the requirement that service have occurred after September 16, 1940.

Mr. David Gloier, Executive Secretary of the Veterans Land Board, has determined that for the first five year period the amendment is in effect there will be no fiscal implications for state or local government or small businesses as a result of enforcing or administering the rule as proposed.

Mr. Gloier has also determined that for each year of the first five years the amendment is in effect the public benefit anticipated as a result of enforcing the amended rule will be as follows: (1) Admission to a state veterans home will be based on a medical necessity for long term care, as opposed to being solely based on Medicaid eligibility; (2) The required length of residency in Texas for non-Texas veterans will be reduced to one year; (3) The spouse of a living veteran will be eligible for admission to a veterans home, thus preventing the break up of families, along with the unmarried surviving spouse of a veteran who died or is identified as missing in action; and (4) Veterans who served on active duty prior to September 16, 1940, will be eligible for admission to a state veteran's home.

There is no anticipated economic cost to individuals who are required to comply with the rule as proposed.

Comments on the proposal may be submitted to Ms. Melinda Tracy, Legal Services Division, General Land Office, 1700 North Congress Ave., Room 626, Austin, Texas 78701; facsimile number (512) 463-6311.

The amendment is proposed under the provisions of Natural Resources Code, §164.002(b), which authorizes the Veterans Land Board to change the definition of a veteran as necessary or appropriate to protect the best interest of the program.

The amendment does not effect any statute, code or article.

§176.7. Admissions Requirements.

(a)

Except as provided in subsection (d) of this section, admission [ Admission ] to a state veterans home shall be limited to Texas Veterans. [ During the biennium ending August 31, 1999, admission will also be dependent on: ]

[ (1)

The veteran meeting institutional Medicaid eligibility criteria including financial, age, disability, citizenship and resident requirements as determined by TDHS;]

[ (2)

The veteran passing the institutional risk criteria as administrated by TDHS;]

[ (3)

A determination that the veteran has a medical necessity by National Heritage Insurance Company (NHIC); and]

[ (4)

The veteran being eligible to receive and receiving USDVA aid and attendance payments.]

(b)

For purposes of this program, a [ A ] Texas Veteran is someone who:

(1)

is at least 18 years of age and a citizen of the United States of America ;

[ (2)

is a citizen of the United States of America;]

[ (3)

is a bona fide resident of Texas at the time of application for admission to said home;]

(2)

[ (4) ] Meets the following service requirements:

(A)

has served not less than 90 continuous days on active duty in the Army, Navy, Air Force, Coast Guard, Marine Corps, [ or ] United States Public Health Service or reserve component of one of the listed branches of service , unless discharged earlier because of a service-connected disability, [ which service must have been after September 16, 1940, ] and who has not been dishonorably discharged from military service; or [ have completed at least 20 years of active or reserve military service in any of the above branches of service, as computed when determining the person's eligibility to receive retirement pay; ]

(B)

has enlisted or received an appointment in the Texas National Guard, who has completed all initial active duty training required as a condition of the enlistment or appointment, and who on the date of filing the application has not been dishonorably discharged from the Texas National Guard; and

[ (5)

has not been dishonorably discharged from military service;]

(3)

[ (6) ] was a bona fide resident of Texas at the time of enlistment, induction, commissioning, appointment or drafting; or has resided in Texas continuously for at least one year [ two years ] immediately before applying for admission. For purposes of determining if a veteran has resided in Texas for one year [ two continuous years ], the Board may require an affidavit from the veteran or the veteran's guardian, setting forth residence addresses for this one-year [ two-year ] period. In addition, the veteran, and/or guardian may be required to furnish documentary evidence of such residence, including, but not limited to driver's licenses, voter registrations, tax receipts, W-2 forms, etc.

(4)

The term also includes:

(A)

the unmarried surviving spouse of a veteran who died or who is identified as missing in action if the deceased or missing veteran meets the requirements in this section, with the exception that the deceased or missing veteran need not have served 90 continuous days under subsection (b)(2)(A) of this section, and if the deceased or missing veteran was a bona fide resident of Texas at the time of the enlistment, induction, commissioning, appointment or drafting; and

(B)

the spouse of a living Texas veteran.

(c)

Admission will also be dependent on a determination that the veteran has a medical necessity requiring long-term care.

(d)

Notwithstanding any provision above to the contrary, no more than 25% of the occupants at any one time may be veteran-related family members; i.e. spouses and/or surviving spouses.

(e)

In considering admission applications, where possible, preference should be given to veterans who would otherwise meet institutional Medicaid eligibility criteria, as determined by the Texas Department of Human Services, but state Medicaid payments may not be used as part of the veteran's payment for care and residence costs.

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 March 6, 2000.

TRD-200001709

Larry R. Soward

Chief Clerk, General Land Office

Veterans Land Office

Earliest possible date of adoption: April 16, 2000

For further information, please call: (512) 305-9129


Part 6. TEXAS COMMISSION FOR THE DEAF AND HARD OF HEARING

Chapter 181. GENERAL RULES OF PRACTICE AND PROCEDURE

Subchapter A. GENERAL PROVISIONS

40 TAC §181.46

The Texas Commission for the Deaf and Hard of Hearing proposes new §181.46. The rule is proposed to establish the procedure for filing a complaint with the Commission.

David W. Myers, Executive Director, has determined that for each year of the first five years the rule is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rule.

Mr. Myers has also determined that for each year of the first five years the rule is in effect the public benefit anticipated as a result of this rule will be a better understanding of how to file a complaint with the agency. There will be no effect on small businesses. There is no anticipated economic hardship to persons required to comply with the rule as proposed.

Comments on this proposed rule may be submitted to Billy Collins, Texas Commission for the Deaf and Hard of Hearing, P.O. Box 12904, Austin, Texas 78711-2904.

The rule is proposed under the Human Resources Code, §81.006(b) (3), which provides the Texas Commission for the Deaf and Hard of Hearing with the authority to adopt rules for administration and programs.

No other statute, code or article is affected by this proposed rule.

§181.46.Filing a Complaint.

Complaints may be filed with the agency in writing via mail, e-mail or by facsimile and directed to the agency's designated Customer Service Representative or to the Executive Director.

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 28, 2000.

TRD-200001501

David Myers

Executive Director

Texas Commission for the Deaf and Hard of Hearing

Earliest possible date of adoption: April 16, 2000

For further information, please call: (512) 407-3250


Part 9. TEXAS DEPARTMENT ON AGING

Chapter 260. AREA AGENCY ON AGING ADMINISTRATIVE REQUIREMENTS

The Texas Department on Aging proposes the repeal of the existing §260.1 and simultaneously proposes a new §260.1, relating to Area Agency on Aging Administrative Responsibilities.

The purpose of this new rule is to ensure Area Agencies on Aging have the information and direction necessary to fulfill the obligations of their contracts with the Texas Department on Aging. This knowledge will ensure proper administrative oversight of the programs funded through the Older Americans Act and the State of Texas for the benefit of older persons in Texas.

The proposed new section outlines the responsibilities of contractors for the administration of an Area Agency on Aging. The new rule as proposed includes subjects relating to the required structure of an Area Agency on Aging, the requirements for proper program accountability, guidance for the review of providers, instructions regarding record maintenance and retention, directions for improving the visibility of the Area Agency on Aging and the Texas Department on Aging, and other pertinent program requirements.

The Texas Department on Aging staff will recommend to the Board on Aging the addition of a requirement to recognize the Department as a primary funding source in all electronic media advertising and information, including but not limited to, television, radio, and the internet, including all web pages. This would be accomplished by using the phrase, whether written or spoken, "Funded by the Texas Department on Aging." This addition would be an expansion of subsection (i) of this rule. Comments regarding this proposed addition should be made during this review period.

Subsection (e)(2) of this proposed new section requires records to be maintained for a minimum period of five years following the end of the federal fiscal year to which the record pertains. This period appears to be in excess of that required under the Uniform Grant Management Standards. The beginning of the period required by the Uniform Grant Management Standards varies depending upon when the final program reports are filed by the Texas Department on Aging for a program year with the federal government. The five year period required in subsection (e)(2) will adequately cover the maximum length of time that would be required for records retention in the event the final federal filing is made at the last available date. This will eliminate the need for the Texas Department on Aging to notify all Area Agencies on Aging of when the retention period begins for each program year.

Frank Pennington, Director of Program and Fiscal Accountability, has determined that for the first five-year period the repeal and new section are in effect there will be no fiscal implications for state government as a result of enforcing or administering the repeal or the new section. There may be minimal fiscal implications for local governments if it is determined an additional telephone line must be installed to meet the requirement in §260.1(h)(3). However, the exact amount is undeterminable because the exact cost is dependent on the current telephone system at each Area Agency on Aging and the cost of any new incoming telephone line that may be necessary. There will be no effect on small business.

Mr. Pennington also has determined that for each year of the first five years the rule is in effect the public benefit anticipated will be a program for older persons that is administered in the most effective manner possible. Parts of this rule will ensure improved visibility of Area Agencies on Aging to foster access to services and benefits. Additionally, the Area Agencies on Aging will have a clearer understanding of their program responsibilities and authorities for the benefit of all older persons in Texas.

Comments on the repeal and the new rule may be submitted to Frank Pennington, Director of Program and Fiscal Accountability, Texas Department on Aging, P. O. Box 12786, Austin, Texas 78711. All comments must be written and delivered via mail, in person, or facsimile. E-mail and verbal comments cannot be accepted. All comments must be received within 30 calendar days following the date of publication of this proposed repeal and new rule in the Texas Register .

40 TAC §260.1

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

The repeal is proposed under Texas Human Resources Code §101.021, which provides the Texas Department on Aging with the authority to promulgate rules governing the operation of the Department.

Texas Human Resources Code, Chapter 101, Subchapter B, §§101.021 - 101.031, relating to Powers and Duties of Board are affected and implemented by this proposed action.

§260.1. Area Agency on Aging Administrative Responsibilities.

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 March 2, 2000.

TRD-200001657

Gary Jessee

Program Specialist

Texas Department on Aging

Earliest possible date of adoption: April 16, 2000

For further information, please call: (512) 424-6857


The new section is proposed under Texas Human Resources Code §101.021, which provides the Texas Department on Aging with the authority to promulgate rules governing the operation of the Department.

Texas Human Resources Code, Chapter 101, Subchapter B, §§101.021 - 101.031, relating to Powers and Duties of Board is affected and implemented by this proposed action.

§260.1. Area Agency on Aging Administrative Responsibilities.

(a)

Purpose. This chapter establishes the responsibilities of the area agency on aging in developing and maintaining an organized and efficient system of administration that demonstrates accountability and compliance with all terms and conditions of the contract.

(b)

Structure.

(1)

Organizational Structure. The organizational structure of the area agency on aging shall be reflected through job descriptions, staffing plans and organizational charts which demonstrate its ability to effectively administer OAA programs and other programs funded by the Department.

(2)

Titles. Each individual selected to perform the duties of the director shall be identified on the staffing pattern and in job descriptions as either director, area agency on aging, or as manager, area agency on aging.

(3)

Staff Resources. All positions shall be budgeted based on the projected percentage of time to be spent performing the duties of an identified service(s), and documentation will be maintained to support the actual time spent performing the duties of an identified service(s).

(4)

Conflicts of Interest. An area agency on aging, its employees, volunteers working within programs of the area agency on aging, its advisory board/committee members and its governing boards shall seek to avoid conflicts-of-interest, in fact and perception, and provide proper notification when potential conflicts-of-interest do occur. Subtitle C, Chapter 171, Local Government Code shall apply to those persons and entities covered under that title for all purposes.

(A)

An area agency on aging shall ensure no current employee, current board member, aging advisory committee member nor representative of the office of the state long-term care ombudsman, paid or volunteer, holds a substantial financial interest, directly or indirectly, in the profits of any entity from which services or goods are contracted or otherwise procured by the area agency on aging or any long-term care facility, nor derives personal profit, directly or indirectly, from any entity which would conflict in any manner or degree with the performance of responsibilities of the employee, board member, advisory committee member or any representative of the office of state long-term care ombudsman, paid or volunteer.

(B)

No current employee, current board member or aging advisory committee member, unless covered under Subtitle C, Chapter 171, Local Government Code, who exercises any functions or responsibilities in the review or award of any contract or the procurement of services or goods on behalf of the area agency on aging, shall:

(i)

participate in any decision relating to the contract or procurement of services or goods in which he/she has a direct or indirect substantial personal financial interest; or

(ii)

have a substantial financial interest, directly or indirectly, in the contract or procurement of services or goods or the proceeds thereof.

(C)

No representative of the office of the state long-term care ombudsman, paid or volunteer, directly or indirectly, shall:

(i)

have direct involvement in the licensing or certification of a long-term care facility or of a provider of a long-term care service;

(ii)

have a family member residing in a long-term care facility to which the representative is assigned or provides advocacy;

(iii)

have ownership or direct investment interest in a long-term care service;

(iv)

be employed by or participate in the management of a long-term care facility; or

(v)

receive or have the right to receive, directly or indirectly, remuneration under a compensation arrangement with an owner or operator of a long-term care facility.

(D)

Area agencies on aging shall include a requirement in all Requests for Proposal (RFP) for services to the elderly and requests for vendor enrollment that any potential conflicts-of-interest be identified in the RFP response. The notification of potential conflicts-of-interest shall include:

(i)

the person for which a potential conflict-of-interest exists;

(ii)

the relationship to any current or former board member, current or former aging advisory committee member, or current or former employee; and

(iii)

the nature of the potential conflict-of-interest.

(E)

The person for whom the potential conflict-of-interest exists shall certify that he/she will abide by all rules established in this subsection.

(c)

Accountability.

(1)

The area agency on aging shall meet programmatic and fiscal performance targets (units, persons, unit cost) as outlined in the approved budget, as amended, within a five percent variance allowed for units and persons.

(2)

The area agency on aging shall submit fiscal and programmatic reports required by the Department in a timely, complete and accurate manner.

(3)

Extensions may be negotiated for reports by Department contract managers according to the circumstances for the request.

(4)

All requests for extension must be made in writing or through electronic notification to the Program and Fiscal Accountability's Help Desk and requested on or before the due date of the report for which a request is made.

(5)

The Department may grant up to two requests for extension per report. An area agency on aging may be granted no more than six extensions per federal fiscal year.

(6)

The area agency on aging shall comply with the terms of all applicable interagency agreements, including, but not limited to, those agreements that are legislatively mandated or entered into by the Department on behalf of area agencies on aging.

(d)

Provider Review.

(1)

An area agency on aging shall conduct reviews of provider program and fiscal activities on a regular and systematic basis. Reviews shall be conducted through a desk audit and on-site review. A risk assessment will be conducted annually to determine the necessity of an on-site review.

(2)

The area agency on aging shall conduct a risk assessment and on-site review utilizing programmatic and fiscal monitoring work papers developed and furnished by the Department.

(3)

The area agency on aging shall measure customer satisfaction through an annual customer satisfaction survey sample of program participants/clients.

(4)

The area agency on aging will develop and follow policies and procedures for imposing penalties and/or sanctions upon contractors/subcontractors for non-performance of the contract agreement or non-compliance with service delivery requirements.

(e)

Records. The area agency on aging must provide for the development, maintenance, and retention of records in accordance with the Uniform Grant Management Standards, Subpart C and as follows:

(1)

establish written procedures to adequately assure proper development, maintenance and retention of all financial records, supporting documents, statistical records and all other records relating to its performance;

(2)

maintain all records for a minimum of five years following the end of the federal fiscal year to which the record pertains and until any pending litigation, claim or audit findings, issuance or proposed disallowed costs or other disputes have been resolved. A multi-site area agency on aging may maintain all records at a designated central location;

(3)

give the Department, the Comptroller General of the United States and the State of Texas through any authorized representatives, the access to and right to examine all records, books, papers, contracts, client records, unless specifically prohibited by law, or other documents related to Department funded programs. Such examination may require access to papers, billings, vouchers or other documents not directly related to the area agency on aging if the purpose of such access is to review charges to any indirect costs pool. Such right of access shall continue as long as such records are in existence.

(4)

the area agency on aging shall require that subcontractors/service providers adhere to paragraphs (1), (2) and (3) of this subsection, as applicable. It is not required that subcontractors/service providers' records be kept at the area agency on aging.

(f)

Targeting.

(1)

Area agencies on aging shall target service delivery in accordance with the OAA, as amended.

(2)

The area agency on aging shall require that subcontractors/service providers adhere to paragraph (1) of this subsection.

(g)

Visibility.

(1)

Each area agency on aging shall use the logo designed by the Department to assure that a uniform, statewide symbol for area agencies on aging designation for public information purposes is employed.

(2)

The logo below shall be used whenever an area agency on aging develops printed material.

Figure: 40 TAC §260.1(g)(2)

(h)

Uniform Telephone Listings.

(1)

The telephone number of each area agency on aging, the area agency on aging's information and assistance toll-free number and the area agency on aging's nursing home ombudsman toll-free number shall appear in each telephone directory published by the provider of local telephone service for residents in any geographical area that lies in whole or in part in the planning and service area served by the area agency on aging.

(2)

The listings shall appear in the unclassified sections and government sections of the phone book. If the area agency on aging serves a major metropolitan area, it shall list its toll-free number(s) in the classified section of the telephone directory(ies).

(3)

The listing shall begin with the words "Area Agency on Aging," and the phone shall be answered "Area Agency on Aging."

(i)

The area agency on aging shall cite the Texas Department on Aging as its primary funding source using the phrase, "Funded by the Texas Department on Aging" on all printed material.

(j)

Identification of Area Agency on Aging Facilities. A sign will be predominantly displayed outside the location used as the Area Agency on Aging.

(1)

This sign will adhere to local ordinances concerning signs.

(2)

The sign will conform to the uniform logo requirements identified in this chapter.

(k)

Emergency Management.

(1)

When a disaster occurs, the area agency on aging will notify the Department of its need to provide for emergency management activities, provide information to the Department regarding the impact of the disaster on the elderly population in its service area, provide emergency management services in accordance with current AoA disaster relief guidelines and collect pertinent data necessary to submit reimbursement requests for disaster services.

(2)

The area agency on aging shall consult with the appropriate agencies that have an interest or role in meeting the needs of the elderly in planning for, during, and after natural, civil defense and/or man-made disasters. To accomplish this, the area agencies on aging shall:

(A)

appoint an emergency management coordinator;

(B)

participate in planning activities with other entities and organizations that are charged to meet the needs of disaster victims in emergency situations, as appropriate;

(C)

require by contract stipulation that service providers develop plans for emergency management; and

(D)

provide technical assistance as necessary to subcontractor/service provider staff regarding emergency management activities.

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 March 2, 2000.

TRD-200001658

Gary Jessee

Program Specialist

Texas Department on Aging

Earliest possible date of adoption: April 16, 2000

For further information, please call: (512) 424-6857


40 TAC §260.2

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

The Texas Department on Aging proposes the repeal of the existing §260.2 and simultaneously proposes a new §260.2, relating to Area Agency on Aging Fiscal Responsibilities.

The purpose of this new rule is to ensure Area Agencies on Aging have the information and direction necessary to fulfill the obligations of their contracts with the Texas Department on Aging. This knowledge will ensure proper fiscal administration and oversight of the programs funded through the Older Americans Act and the State of Texas for the benefit of older persons in Texas.

The proposed new section outlines the fiscal responsibilities of contractors for the financial administration of an Area Agency on Aging. The new rule as proposed includes subjects relating to purchasing, audit requirements, the development and approval of an indirect costs allocation plan, contract certifications, budget submissions, contracting, funding match requirements, and other pertinent fiscal requirements.

Frank Pennington, Director of Program and Fiscal Accountability, has determined that for the first five-year period the repeal and new section are in effect there will be no fiscal implications for state or local governments as a result of enforcing or administering the repeal or the new section. There will be no effect on small businesses.

Mr. Pennington also has determined that for each year of the first five years the rule is in effect the public benefit anticipated will be a program for older persons that is administered in the most fiscally effective manner possible. This rule will ensure strong accountability of all Area Agencies on Aging in the administration of programs as well as service delivery. Area Agencies on Aging will have a clearer understanding of their fiscal responsibilities and authorities for the benefit of all older persons in Texas.

Comments on the repeal and the new rule may be submitted to Frank Pennington, Director of Program and Fiscal Accountability, Texas Department on Aging, P. O. Box 12786, Austin, Texas 78711. All comments must be written and delivered via mail, in person, or facsimile. E-mail and verbal comments cannot be accepted. All comments must be received within 30 calendar days following the date of publication of this proposed repeal and new rule in the Texas Register .

The proposed repeal is proposed under Texas Human Resources Code §101.021, which provides the Texas Department on Aging with the authority to promulgate rules governing the operation of the Department.

Texas Human Resources Code, Chapter 101, Subchapter B, §§101.021 - 101.031, relating to Powers and Duties of Board are affected and implemented by this proposed action.

§260.2. Area Agency on Aging Fiscal Responsibilities.

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 March 2, 2000.

TRD-200001660

Gary Jessee

Program Specialist

Texas Department on Aging

Earliest possible date of adoption: April 16, 2000

For further information, please call: (512) 424-6857


The new section is proposed under Texas Human Resources Code §101.021, which provides the Texas Department on Aging with the authority to promulgate rules governing the operation of the Department.

Texas Human Resources Code, Chapter 101, Subchapter B, §§101.021 - 101.031, relating to Powers and Duties of Board are affected and implemented by this proposed action.

§260.2. Area Agency on Aging Fiscal Responsibilities.

(a)

Purpose. An area agency on aging shall demonstrate and maintain fiscal integrity in order to comply with the requirements of the Governing Documents as listed in §254.3 of this title (relating to Governing Documents); all Texas Department on Aging Rules; the Department's policies related to the Cash Management Improvement Act, 31 Code of Federal Regulations Part 205, a Treasury-State agreement; and with all state and local laws as pertains to the financial operation of an area agency on aging. Policies, procedures, standards, program instructions, and technical assistance memorandums shall be promulgated by the Department, as necessary, in order to support and interpret these rules and laws. The Department shall be the final authority in determining how these interpretations shall pertain to programs for older persons. The area agency on aging shall comply with the following financial criteria.

(b)

Purchases. All purchases of service, materials, equipment and goods made with grant funds shall follow the criteria of allowability as prescribed in the Uniform Grant Management Standards, as adopted by the Governor's Office of Budget and Planning, including OMB Circulars A-87 or A-122, as applicable, and the following.

(1)

All purchases shall have been made by actual receipt of the service or merchandise or issuance of a purchase contract, voucher, or other legal document that binds both parties to the transaction, no later than the last day of the grant period for which funds have been budgeted and encumbered.

(2)

Actual receipt of the service or merchandise and payment shall be made prior to the due date of the closeout report for the grant period for which funds have been budgeted and encumbered.

(3)

Any service or merchandise placed on order in a fiscal program year, in accordance with subsection (a) of this section and not meeting the criteria in subsection (b) of this section, shall be paid for with funds awarded for the fiscal year in which the service or merchandise was actually received and/or payment made.

(c)

Independent Audit.

(1)

An area agency on aging receiving more than $300,000 in federal or state funding from all sources shall provide an audit in accordance with the standards for financial and compliance audits contained in the Standards for Audit of Governmental Organizations, Programs, Activities and Functions, issued by the U.S. General Accounting Office; the Single Audit Act of 1984, including all updates and revisions; the provisions of OMB Circular A-133, Audits of States, Local Governments, and Nonprofit Organizations, as applicable, and the Uniform Grant Management Standards.

(2)

The audit shall cover the entire organization and be conducted in accordance with generally accepted auditing standards. Additionally, audits shall be conducted in accordance with audit guidelines promulgated by the Department, or the Single Audit Manager's Forum (SAMF) or other authoritative source with prior written approval from the Department.

(3)

The area agency on aging shall provide and furnish the Department with an annual audit by an independent certified public accounting firm in accordance with OMB Circular A-133 within 30 calendar days following receipt of such audit, but in no case more than nine months following the end of the area agency on aging's fiscal year end.

(4)

An area agency on aging shall require all subcontractors to adhere to paragraphs (1) and (2) of this subsection, relating to the requirements for an independent audit in accordance with OMB Circular A-133.

(d)

Indirect Costs Allocation Plan.

(1)

The area agency on aging shall have an Indirect Costs Allocation Plan approved in accordance with the Uniform Grant Management Standards. Documentation of compliance with the above must be submitted to the Department for any period covered under this contract no later than the first of September immediately proceeding the contract period.

(2)

An Indirect Costs Allocation Plan shall be submitted for approval to the Department by all area agencies on aging for whom the Department is the designated state coordination agency, no later than 60 days before the beginning of the contract period.

(3)

All Indirect Costs Allocation Plans submitted to the Department for approval must have sufficient detail, as defined by the Department, to allow proper evaluation of the plan.

(e)

Disallowance of Costs.

(1)

In accordance with OMB Circular A-133 and Uniform Grant Management Standards, determination shall be made by independent audit and/or monitoring visit by the Department relating to the allowable use of federal, state and matching credit funds in accordance with OMB Circulars A-87, A-122 and other applicable laws, regulations and circulars promulgated by recognized authoritative bodies.

(2)

Costs found to be unallowable, in accordance with those referenced in paragraph (1) of this subsection, relating to the allowable use of funds, shall be designated as questioned costs.

(3)

To recover unresolved questioned costs revealed in an audit or monitoring visit, the Department will send a Letter of Notification of Disallowance with Intent to Recover Costs by certified or registered mail, return receipt requested within 60 calendar days following the failure to resolve all such questioned costs. The 60 calendar day period shall begin the next day following the six months allowed for resolution in accordance with OMB Circular A-133.

(4)

Notification of disallowance resulting from questioned costs revealed during an independent audit or monitoring visit shall be issued by the Department.

(5)

The area agency on aging shall resolve all findings and questioned costs within six months of receipt of the audit or notice of questioned costs unless an extension has been granted as directed by the Department.

(6)

The area agency on aging shall be liable to the Department for any costs disallowed as a result of unresolved questioned costs revealed during an audit or monitoring relating to aging programs and/or expenditures.

(7)

Failure of the area agency on aging to secure an acceptable independent audit from a subcontractor, when required by law, within the timeframe established in paragraph (5) of this subsection, relating to the recovery of questioned costs shall be deemed non-resolution. Non-resolution under this subparagraph shall be considered a violation under §254.13(f)(11) of this title (relating to Compliance with Contractor Responsibilities, Rewards and Penalties).

(8)

Disallowance resulting from non-receipt of required subcontractor audits shall be resolved in the same manner as if revealed by an independent audit or a monitoring visit.

(f)

Recapture of Payments.

(1)

Recapture of payment may occur when costs have been disallowed by the Department, or if the area agency on aging has received funds in excess of those actually earned. The Department may take appropriate action including requiring the repayment of and/or withholding of funds in such cases that overpayment has occurred.

(2)

Any area agency on aging having funds recaptured because of a disallowance, in accordance with subsection (e) of this section relating to disallowance, shall waive all rights to such funds and shall not receive any of the funds upon reallocation.

(g)

Contract Certifications. Certifications required of all area agencies on aging include but are not limited to:

(1)

Debarment and Suspension.

(A)

The area agency on aging shall not knowingly deal with any person, business or other entity which has been suspended or debarred from receiving federal funds under 45 Code of Federal Regulations §76.200, concerning non-procurement, or 45 Code of Federal Regulations, Part 1229, Government wide Debarment and Suspension (Non-procurement) and Government wide Requirements for Drug-Free Workplace (Grants).

(B)

For each federal fiscal year the area agency on aging shall secure a Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion for Covered Contracts and Grants from any potential subcontractor, of any tier, for which such certification is required, prior to issuing any award, grant or contract.

(2)

Americans with Disabilities Act. The area agency on agency shall not purchase services from any subcontractor not in compliance with the provisions of the Americans with Disabilities Act.

(h)

Budget Submissions.

(1)

An area agency on aging, on an annual basis, shall submit a budget in a format directed by the Department which reflects the scope of the approved area plan.

(2)

An amended budget must be submitted to and approved by the Department prior to implementation of the amended budget.

(3)

Budget submissions shall be due to the Department no later than 45 days following the date of notification.

(i)

Contracting.

(1)

The authority for the area agency on aging to enter into service provider contracts is based on the Older Americans Act of 1965, as amended, and its regulations; HHS regulations on Administration of Grants; Title 45 Code of Federal Regulations, Part 74; Title 45 Code of Federal Regulations, Part 92; Title 45 Code of Federal Regulations, Part 1321, et seq. ; Title 45 Code of Federal Regulations, Part 91; and all policies and rules established by the Department; and with all state and local laws as they pertain to contracting and reimbursement methodologies. The area agency on aging and all subcontractors/service providers shall comply therewith.

(2)

When purchasing services, the area agency on aging shall use the following cost determination methodologies for the purchase of goods and services. These methodologies are known as cost reimbursement, performance based unit rate and variable unit rate.

(A)

Cost Reimbursement. In cost reimbursement contracts, the area agency on aging pays the subcontractor on a reimbursement basis for services rendered. Reimbursement shall not be adjusted to offset poor management planning. Adjustments to the share of expenses that federal and/or state funds will pay must be requested in writing by the subcontractor/service provider and may only be considered by the area agency on aging in instances where:

(i)

a subcontractor experiences significant operating losses due to events over which they have no control or reasonably could not have anticipated; or

(ii)

a subcontractor experiences excess revenues over operational costs due to unanticipated, and/or unbudgeted additional resources; or

(iii)

reductions in expenses due to a change in cost allocation methodology.

(B)

Performance Based Unit Rate. In performance based unit rate contracting, the area agency on aging agrees to pay the subcontractor/service provider in the amounts and upon the terms, provisions and budgets as set forth in its contract with the subcontractor/service provider as a result of negotiation of a suitable unit rate. The subcontractor/service provider agrees to deliver specific services on an at-risk basis.

(C)

Variable Unit Rate. Variable unit rate contracting allows for rate variation that is specific to a unit of service. This method would be used primarily for services such as health maintenance and residential repair but is not limited to these services.

(3)

Direct Purchase of Services. Direct purchase of services contracting allows for the purchase of service(s) on a client-by-client basis. Direct purchase of services requirements are identified in §260.19 of this title (relating to Direct Purchase of Services).

(4)

Sole Source Procurement. The sole source procurement method may be used only when the award of a contract is not feasible under the other procurement methods. In this event, the area agency on aging shall comply with the procedures established in 45 Code of Federal Regulations Part 92.36(d)(4), concerning procurement by noncompetitive proposals.

(5)

Competitive Bidding. Area agencies on aging shall comply with competitive bidding procedures to promote fair and open competition in the procurement process through the use of formal bidding, informal bidding or competitive proposals, as appropriate. Documentation shall be maintained by the area agency on aging to demonstrate all such efforts.

(6)

The area agency on aging shall attach to the subcontractor/service provider contract, all relevant sections of the Texas Administrative Code relating to the service(s) provided regardless of the procurement process used.

(7)

All subcontractor/service provider contracts shall require a subcontractor/service provider to have an accounting system which identifies all costs for each specific service being purchased or provided and which complies with 45 Code of Federal Regulations, §1321, Subpart D.

(j)

Service Match.

(1)

In order to meet the match requirements of the Older Americans Act, 1965, as amended, §304(d), area agencies on aging and their service providers shall provide a minimum of 10% non-federal match funds for the cost of all Older American Act services.

(2)

The non-federal share of service funding shall be in cash or in kind.

(3)

In-kind shall be based on fair market value of the services and goods provided at the time they are provided.

(k)

Area Agency on Aging Administrative Match.

(1)

In order to meet the match requirements of the Older Americans Act, 1965, as amended, §304(d), area agencies on aging shall provide a minimum of 25% non-federal match funds for the cost of administration of area plans.

(2)

The non-federal share of service funding shall be in cash or in kind.

(3)

In-kind shall be based on fair market value of the services and goods provided at the time of provision.

(l)

Program Income.

(1)

Program income contributions shall be administered in accordance with 45 Code of Federal Regulations, Part 1321; 45 Code of Federal Regulations, Part 92.25; and the Uniform Grant Management Standards.

(2)

Cost Reimbursement. Reimbursement shall not be made in excess of actual allowable expenses less program income received during the reimbursement period.

(3)

Performance Based Unit Rate. Program income received shall not be deducted from the amount paid to subcontractor/service provider.

(4)

Direct Purchase of Services. When an area agency on aging or other designated access and assistance service provider purchases services using the direct purchase of service methodology, program income must be collected, accounted for and used to support and enhance services provided by the area agency on aging.

(m)

Adequate Proportion.

(1)

Each area agency on aging shall establish and meet an adequate proportion of funding they receive under Title III, Part B, of the Older Americans Act, §306(a)(2), as amended, for support services in the budget.

(2)

Adequate proportion of funding for support services shall include each of the following support services categories and their designated services:

(A)

services associated with access to services (transportation, outreach, information and assistance and case management services);

(B)

in-home services (homemaker and home health aides, visiting and telephone assurance, chore maintenance and supportive services for families of older individuals who are victims of Alzheimer's disease and related disorders with neurological and organic brain dysfunction); and

(C)

legal assistance.

(3)

An area agency on aging may propose a change in the local adequate proportion funding level for any of the support service categories through written request to the Department prior to the beginning of the fiscal year.

(4)

An area agency on aging may seek a waiver from the Department for setting and expending an adequate proportion of Title III, Part B funds for support service categories.

(A)

At least one public hearing shall be held on the area plan or area plan amendment containing a request for waiver of adequate proportion. The area agency on aging shall notify all interested parties in the area of the public hearing and provide them with an opportunity to testify.

(B)

The area agency on aging shall provide appropriate justification to demonstrate an adequate supply of a specified support service is available to meet the needs of the service area.

(C)

Separate waiver requests shall be submitted for each category of support services for which a waiver is sought.

(n)

Ombudsman Maintenance of Effort. Area agencies on aging shall meet the requirements for maintenance of effort for ombudsman activities as defined in the Older Americans Act §306(a)(11).

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 March 2, 2000.

TRD-200001659

Gary Jessee

Program Specialist

Texas Department on Aging

Earliest possible date of adoption: April 16, 2000

For further information, please call: (512) 424-6857


40 TAC §260.15

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

The Texas Department on Aging proposes the repeal of the existing §260.15, relating to Responsibilities of Contractor for Carryover of Unexpended Older Americans Act Funds and Any Other Unexpended Funds Issued by the Department, and simultaneously proposes new §260.15, relating to Criteria for Administering Carryover of Unexpended Funds.

The purpose of this new rule is to ensure Area Agencies on Aging have the information and direction necessary to fulfill the obligations of their contracts with the Texas Department on Aging. Additionally, the Area Agencies on Aging will understand the requirements for obtaining second year spending authority for unexpended funds of a program year. This knowledge will ensure proper administrative oversight of the funds provided through the Older Americans Act and the State of Texas for the benefit of older persons in Texas.

The proposed new section outlines the criteria to be met in order to receive unexpended funds from one year with authority for expenditure in a second program year. Additionally, the proposed new section describes the process for establishing a carryover funding pool and the requirements to be met for participation in the distribution of the funds in the pool.

Frank Pennington, Director of Program and Fiscal Accountability, has determined that for the first five-year period the repeal and new section are in effect there will be no fiscal implications for state or local governments as a result of enforcing or administering the repeal or the new section. There will be no effect on small businesses.

Mr. Pennington also has determined that for each year of the first five years the rule is in effect the public benefit anticipated will be a program for older persons that receives the maximum funds available for service delivery within each regional area. This rule will ensure strong accountability of all Area Agencies on Aging in the fiscal management of programs for the elderly. Area Agencies on Aging will have a clearer understanding of their fiscal responsibilities and authorities for the benefit of all older persons in Texas.

Comments on the repeal and the new rule may be submitted to Frank Pennington, Director of Program and Fiscal Accountability, Texas Department on Aging, P. O. Box 12786, Austin, Texas 78711. All comments must be written and delivered via mail, in person, or facsimile. E-mail and verbal comments cannot be accepted. All comments must be received within 30 calendar days following the date of publication of this proposed repeal and new rule in the Texas Register .

The proposed repeal is proposed under Texas Human Resources Code §101.021, which provides the Texas Department on Aging with the authority to promulgate rules governing the operation of the Department.

Texas Human resources Code, Chapter 101, Subchapter B, §§101.021 - 101.031, relating to Powers and Duties of Board are affected and implemented by this proposed action.

§260.15. Criteria for Administering Carryover of Unexpended Funds.

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 March 2, 2000.

TRD-200001661

Gary Jessee

Program Specialist

Texas Department on Aging

Earliest possible date of adoption: April 16, 2000

For further information, please call: (512) 424-6857


The new section is proposed under Texas Human Resources Code §101.021, which provides the Texas Department on Aging with the authority to promulgate rules governing the operation of the Department.

Texas Human Resources Code, Chapter 101, Subchapter B, §§101.021 - 101.031, relating to Powers and Duties of Board are affected and implemented by this proposed action.

§260.15. Criteria for Administering Carryover of Unexpended Funds.

(a)

Purpose. This chapter establishes the responsibilities of the Department for administering the carryover of unexpended funds and establishes the criteria under which an area agency on aging may receive unexpended funds.

(b)

Approval of Carryover.

(1)

An amount up to 5% or $100,000, whichever is less, of the total Title III and Title VII funds allocated to each area agency on aging may be eligible for consideration for carryover approval.

(2)

Funds awarded in the third and fourth quarter shall not be included in the total award for calculation purposes of the 5%.

(c)

Establishment of the Carryover Pool. All funds exceeding the approved carryover will be placed in a statewide carryover pool for reallocation to eligible area agencies on aging.

(d)

Eligibility for Participation in the Distribution of the Carryover Pool. An area agency on aging must meet the following performance criteria to participate in the reallocation of the statewide carryover pool:

(1)

100% of reports submitted on time;

(2)

adherence to end of year carryover fiscal guidelines outlined above in subsection (b)(1) of this section;

(3)

no level three or level four violations cited during the previous fiscal year in accordance with 40 TAC §254.13;

(4)

no unpaid amounts due to the Department for disallowed costs for the fiscal year from which carryover funds are being reallocated unless a prior payment agreement has been established or is pending final Department approval;

(5)

adherence to all requirements for adequate proportion for eligible in-home services, access services and legal services unless waiver from such requirements has been obtained from the Department; and

(6)

adherence to all requirements for maintenance of effort for the Ombudsman program.

(e)

Distribution of Carryover Pool Funds.

(1)

50% of carryover pool funds will be reallocated equally among all eligible area agencies on aging.

(2)

The remaining 50% of carryover pool funds will be reallocated to eligible area agencies on aging based upon the approved Title III funding formula.

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 March 2, 2000.

TRD-200001662

Gary Jessee

Program Specialist

Texas Department on Aging

Earliest possible date of adoption: April 16, 2000

For further information, please call: (512) 424-6857


40 TAC §260.17

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

The Texas Department on Aging proposes the repeal of existing §260.17 and simultaneously proposes a new §260.17, relating to Approval of Direct Services Applications from Area Agencies on Aging.

The purpose of this new rule is to ensure Area Agencies on Aging have the information and direction necessary to fulfill the obligations of their contracts with the Texas Department on Aging. This knowledge will ensure proper administrative oversight of the programs funded through the Older Americans Act and the State of Texas for the benefit of older persons in Texas.

The proposed new section outlines the necessary criteria for receiving approval to provide direct services to the elderly of Texas. The new rule as proposed includes subjects relating to the conditions required to make a request for direct service provision, services exempted from a waiver request, the waiver process, and other pertinent program requirements.

Frank Pennington, Director of Program and Fiscal Accountability, has determined that for the first five-year period the repeal and new section are in effect there will be no fiscal implications for state or local governments as a result of enforcing or administering the repeal or the new section. There will be no effect on small business.

Mr. Pennington also has determined that for each year of the first five years the rule is in effect the public benefit anticipated will be a program for older persons that provides services in the most effective manner possible. Additionally, the Area Agencies on Aging will have a clearer understanding of the criteria necessary to provide services directly to elderly clients and the process to be followed to receive approval for such service delivery.

Comments on the repeal and the new rule may be submitted to Frank Pennington, Director of Program and Fiscal Accountability, Texas Department on Aging, P. O. Box 12786, Austin, Texas 78711. All comments must be written and delivered via mail, in person, or facsimile. E-mail and verbal comments cannot be accepted. All comments must be received within 30 calendar days following the date of publication of this proposed repeal and new rule in the Texas Register .

The proposed repeal is proposed under Texas Human Resources Code §101.021, which provides the Texas Department on Aging with the authority to promulgate rules governing the operation of the Department.

Texas Human Resources Code, Chapter 101, Subchapter B, §§101.021 - 101.031, relating to Powers and Duties of Board are affected and implemented by this proposed action.

§260.17 Approval of Direct Services Applications from Area Agencies on Aging.

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 March 2, 2000.

TRD-200001663

Gary Jessee

Program Specialist

Texas Department on Aging

Earliest possible date of adoption: April 16, 2000

For further information, please call: (512) 424-6857


The new section is proposed under Texas Human Resources Code §101.021, which provides the Texas Department on Aging with the authority to promulgate rules governing the operation of the Department.

Texas Human Resources Code, Chapter 101, Subchapter B, §§101.021 - 101.031, relating to Powers and Duties of Board are affected and implemented by this proposed action.

§260.17. Approval of Direct Services Applications from Area Agencies on Aging.

(a)

Purpose. This chapter establishes policies when area agencies on aging determine the need to provide a service(s) directly to the elderly.

(b)

Conditions for Request. In accordance with the Older Americans Act, §307(a)(10), as amended, one of three conditions must exist, establishing the basis for approval of a waiver for an area agency on aging to provide direct services. These include:

(1)

provision of direct service is necessary to provide an adequate supply of services; or

(2)

service is related to area agency on aging administrative functions, except those identified in subsection (c) of this section; or

(3)

a comparable service can be performed more economically than by contractor agreement.

(c)

Services Exempted From Waiver Request. The following services may be provided directly by an area agency on aging without a specific waiver request:

(1)

outreach and advocacy;

(2)

information and assistance;

(3)

case management;

(4)

benefits counseling;

(5)

ombudsman; and

(6)

services purchased under the direct purchase of service (DPS) procurement methodology in accordance with 40 TAC §260.19(c)(1).

(d)

Waiver Application Process.

(1)

Submission of Waiver Application. An area agency on aging may submit a waiver application to provide a direct service through the following:

(A)

Standard Request. Included with the area plan or area plan amendment.

(B)

Emergency Request. When an emergency situation threatens the maintenance of service delivery.

(2)

Documentation Requirements. To permit the Department to render a fact-based decision on the direct service waiver application, the area agency on aging must submit documentation to support their position for supplying the service(s) directly. Documentation must include:

(A)

identification of the service for which the waiver is requested;

(B)

applicable condition in accordance with subsection (b) of this section;

(C)

acceptable narrative and financial documentation to support the condition for request which will become part of the approved area plan;

(D)

term of waiver requested.

(3)

Department Response.

(A)

The Department within 30 calendar days following receipt of the area plan and/or area plan amendment shall approve or deny standard requests for waiver.

(B)

The Department shall acknowledge emergency requests for waiver by the close of business on the first regular workday following the date on which the request for waiver is received.

(4)

Approval Period.

(A)

Approval of a standard request for waiver shall be for a period agreed upon by the area agency on aging and the Department not to exceed the effective term of the area plan.

(B)

Approval of an emergency request for waiver shall be for a period agreed upon by the area agency on aging and the Department not to exceed 180 calendar days, and not to exceed the effective term of the area plan.

(C)

The Department upon request from the area agency on aging may extend the standard waiver period or the emergency waiver period for not more than 90 days. The period of the extension shall not exceed the effective term of the area plan.

(5)

Notification of Waiver Approval.

(A)

As part of the area plan and/or area plan amendment process, standard requests for waiver shall be approved within ten working days following receipt, review and approval of all necessary documentation in accordance with subsection (d)(2) of this section. Failure to provide all necessary and acceptable documentation within 30 days following request for such documentation by the Department shall warrant denial of the request by the Department.

(B)

Emergency waivers shall be approved or denied within three working days following receipt of the request for waiver conditioned upon receipt, review and approval of all necessary documentation in accordance with subsection (d)(2) of this section. Interim approval shall be for a period not to exceed ten working days. Failure to provide all necessary and acceptable documentation within three days following request for such documentation by the Department shall warrant denial of the request by the Department.

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 March 2, 2000.

TRD-200001664

Gary Jessee

Program Specialist

Texas Department on Aging

Earliest possible date of adoption: April 16, 2000

For further information, please call: (512) 424-6857


40 TAC §260.19

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

The Texas Department on Aging proposes the repeal of the existing §260.19 and simultaneously proposes a new §260.19, relating to Direct Purchase of Service (DPS).

The purpose of this new rule is to ensure Area Agencies on Aging have the information and direction necessary to fulfill the obligations of their contracts with the Texas Department on Aging. This knowledge will ensure proper administrative oversight of the programs funded through the Older Americans Act and the State of Texas for the benefit of older persons in Texas.

The proposed new section outlines the responsibilities of contractors when using the Direct Purchase of Service procurement methodology as they administer the programs under the Older Americans Act. The new rule as proposed includes subjects relating to when the DPS procurement method can be used, the DPS system structure, provider monitoring, and other pertinent program requirements.

Frank Pennington, Director of Program and Fiscal Accountability, has determined that for the first five-year period the repeal and new section are in effect there will be no fiscal implications for state of local governments as a result of enforcing or administering the repeal or the new section. There will be no effect on small business.

Mr. Pennington also has determined that for each year of the first five years the rule is in effect the public benefit anticipated will be a service delivery system that is procured in the most effective manner possible to meet the program design established by an Area Agency on Aging. Additionally, the Area Agencies on Aging will have a clearer understanding of their authorities to use the DPS procurement methodology and their responsibilities if they choose this procurement method.

Comments on the repeal and the new rule may be submitted to Frank Pennington, Director of Program and Fiscal Accountability, Texas Department on Aging, P. O. Box 12786, Austin, Texas 78711. All comments must be written and delivered via mail, in person, or facsimile. E-mail and verbal comments cannot be accepted. All comments must be received within 30 calendar days following the date of publication of this proposed repeal and new rule in the Texas Register .

The proposed repeal is proposed under Texas Human Resources Code §101.021, which provides the Texas Department on Aging with the authority to promulgate rules governing the operation of the Department.

Texas Human Resources Code, Chapter 101, Subchapter B, §§101.021 - 101.031, relating to Powers and Duties of Board are affected and implemented by this proposed action.

§260.19. Direct Purchase of Services.

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 March 2, 2000.

TRD-200001665

Gary Jessee

Program Specialist

Texas Department on Aging

Earliest possible date of adoption: April 16, 2000

For further information, please call: (512) 424-6857


The new section is proposed under Texas Human Resources Code §101.021, which provides the Texas Department on Aging with the authority to promulgate rules governing the operation of the Department.

Texas Human Resources Code, Chapter 101, Subchapter B, §§101.021 - 101.031, relating to Powers and Duties of Board are affected and implemented by this proposed action.

§260.19. Direct Purchase of Service (DPS).

(a)

Purpose. Direct Purchase of Service (DPS) is a procurement method that provides flexibility and effective management of resources by purchasing services on a client-by-client basis as determined by an assessment of the individual's service needs.

(b)

The DPS procurement method is used:

(1)

to facilitate an individual's access to services;

(2)

to target limited resources;

(3)

to encourage broad participation of service providers in Title III programs;

(4)

to promote accuracy in reporting; and

(5)

to assist the area agency on aging in meeting performance measures.

(c)

DPS System Structure.

(1)

Vendor Pool. A vendor pool shall be developed and maintained using:

(A)

Open Enrollment. Open enrollment allows eligible service providers to enroll at any time in the program year; or

(B)

Closed Enrollment. Closed enrollment allows eligible service providers to enroll only during the enrollment period established by the area agency on aging; or

(C)

A combination of open and closed enrollment.

(2)

Vendor Agreement. A vendor agreement shall be developed for all service providers in accordance with the standards and criteria established by the area agency on aging and TDoA to ensure service providers meet all required certifications, standards and criteria established by state law.

(3)

Service Authorization.

(A)

Service authorization may be provided by any designated area agency on aging staff member(s) and/or staff member(s) of any contracted access and assistance unit as approved by the area agency on aging.

(B)

Service Authorization must include the number of units authorized, frequency and duration of the service to be purchased.

(C)

The vendor list from which a service is authorized must be regularly reviewed and approved by the area agency on aging.

(d)

Match. Match shall be obtained in accordance with 40 TAC §260.2

(e)

Program Income. Program income shall be accounted for in accordance with 40 TAC §260.2.

(f)

Quality Assurance. Quality assurance of services provided by vendors shall be determined through reassessment and other follow-up activities with the client conducted by the area agency on aging. The area agency on aging shall require monthly reports from the vendor. A quality assurance review is conducted to ensure a satisfactory performance in the following areas to determine whether a vendor has met the service criteria established in the vendor agreement:

(1)

the vendor is meeting the performance criteria and frequency of the service as authorized for the client;

(2)

the vendor is performing those duties specified when the service was authorized;

(3)

the client indicated that the services provided are satisfactory; and

(4)

services met or exceeded all applicable state and federal guidelines.

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 March 2, 2000.

TRD-200001666

Gary Jessee

Program Specialist

Texas Department on Aging

Earliest possible date of adoption: April 16, 2000

For further information, please call: (512) 424-6857