TITLE 40.SOCIAL SERVICES AND ASSISTANCE

Part 20. TEXAS WORKFORCE COMMISSION

Chapter 800. GENERAL ADMINISTRATION

The Texas Workforce Commission (Commission) adopts an amendment to Subchapter A. General Provisions, §800.2. Definitions; the repeal of §§800.51, 800.52, 800.58, and 800.61 and new §§800.51, 800.52, 800.58, 800.61, 800.71-800.75 for Subchapter B, Allocations and Funding; and the repeal of Subchapter C. Reallocation of Funds, §§800.81 - 800.86. Section 800.2, §800.74 and §800.75 are adopted with changes to the proposed rules as published in the June 29, 2001 issue of the Texas Register (26 TexReg 4836). The remaining sections are adopted without changes and will not be republished.

The purposes of the changes are to reorganize the allocation and reallocation rules; to streamline the rules by removing the Funds Utilization and Service Level Report and Plan requirements; to focus on target expenditure levels, performance data relating to allocations and funds; and to set forth methods of examining expenditure levels and performance data as they relate to the provision of workforce services and training.

The Commission's intent in removing the Funds Utilization and Service Level Report and Plan is to respond to the needs and requests of local workforce development boards (Boards). The Commission strives for a method of ensuring that funds are fully utilized in the areas that are allocated those funds based on the federal formulas or as otherwise permitted by state law to be formula allocated using a need-based formula. The Funds Utilization and Service Level Report and Plan were initially developed to permit Boards to plan service delivery and related expenditures more carefully, yet provide a mechanism for the Commission to evaluate such performance, deobligate and quickly redistribute unexpended funds to areas of the state demonstrating the ability to provide services more efficiently and effectively, using funds in a timely manner. In implementing the Funds Utilization and Service Level Reports and Plans, it is apparent that the plans and reports created additional administrative burdens and hindered flexibility. The Commission intends to remove any reporting or planning requirements that are not necessary. The Commission also seeks to simplify processes, yet maintain a predictable schedule for the redistribution of allocated monies.

In §800.2, under the definition of child care, the reference to Welfare-to-Work formula grants was deleted because the Welfare-to-Work funds include some state General Revenue funds as well as formula grant funds. A change to the definition of WIA formula allocated funds or services and activities was made to delete the reference to services and activities and to emphasize WIA funding categories.

Section 800.58(f)(4) removes the requirement that Boards expend at least 4% of the Child Care and Development Funds for quality improvement activities, in order to give Boards more flexibility in determining the use of funds.

Section 800.61(c) changes the provisions relating to state general revenue funds for Welfare-to-Work to allow for more flexibility in the use of those funds. Section 800.61(e) is removed.

The rules numbers are consolidated into one subchapter for Allocation, Deobligation and Reallocation by renumbering §§800.81 - 800.86 as §§800.71-800.75.

In Section 800.81(b) the intent provision is moved to §800.51 to locate the provision so it is apparent that it applies to allocation, deobligation and reallocation.

Section 800.81 is renumbered as §800.71 and in subsection (b) the language is removed that excepts Welfare-to-Work and Workforce Investment Act (WIA) formula allocated funds, including Adult, Youth and Dislocated Worker funds, from the intent section; it also streamlines the reference to WIA throughout the applicable rules by referencing WIA Adult, Youth and Dislocated Workers as "WIA formula allocated funds."

In §800.81(c) and throughout the rest of §800.81, changes are made to shorten the references from WIA Adult, WIA Dislocated Worker and WIA Youth to "WIA formula allocated funds" and remove unnecessary provisions relating to (c) (2) exceptions to the scope of the rules.

Section 800.82 repeals the rule and merges the definitions of expenditures, monthly expenditure report, and obligation into §800.52 and deletes the remaining definitions of Funds Utilization and Service Level Plan, Program year, and service level report.

Section 800.83 is renumbered as §800.72 and the planning requirement related to the Funds Utilization and Service Level Reports is removed.

The provision regarding necessary revisions to the monthly expenditure report is eliminated throughout.

Section 800.84 is renumbered as §800.73 and a provision is added encouraging Boards to meet targeted expenditure levels to achieve appropriate levels of services. Subsection (b), the provision relating to carryover funds for Child Care, is eliminated and replaced with the provision that allows the Commission to consider obligated funds in reviewing the Boards' compliance with target expenditure levels as well as other factors necessary to evaluate performance of the Board.

Section 800.85 is renumbered as §800.74 and changes from required expenditure levels to target expenditure levels and allows the consideration of a Board's justification of current and projected service levels and related performance data in determining an amount of funding to deobligate. This section is also changed to clarify the procedure for requesting voluntary deobligation of funds and includes the notification of the designated chief elected officials in the local workforce development area.

Section 800.86 is renumbered as §800.75 and paragraph (b) (1) is changed from a requirement to utilize specific criteria to allow the Commission to consider factors including targeted expenditure levels.

For purposes of this preamble, the term "Agency" refers to the daily operations of the Texas Workforce Commission under the direction of the executive director, and the term "Commission" refers to the three-member body of governance composed of Governor-appointed members.

Background. The Commission is charged with ensuring accountability among Boards and subrecipients of the Agency. Boards are charged with the oversight and management of the services and activities of the One-Stop Service Delivery Network. Specifically, Board and Commission goals reflect WIA goals: 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.

Texas Government Code Chapter 2308, Texas Labor Code Title 4 and WIA have imposed on Boards a number of duties and responsibilities for the administration of Commission-funded activities, including maintaining adequate fiscal systems, complying with the uniform rules for administration of grants and agreements, meeting contract performance measures, and complying with all applicable state and federal statutes and regulations.

The rules emphasize the relationship between the Commission and Boards in assuring compliance with federal and state requirements through performance reviews, technical assistance, and contract oversight and monitoring.

The Commission received comments from the following local workforce development boards and one organization: The Coastal Bend Workforce Development Board, the North Central Workforce Development Board, the Southeast Texas Workforce Development Board, the Texoma Workforce Development Board, the West Central Workforce Development Board and the Center for Public Policy Priorities.

Comment: Regarding Section 800.2, one commenter stated a positive comment about the Food Stamp Employment & Training (E&T) program allocation coinciding with the fiscal year as with other programs, making it more uniform. Another commenter stated that changing the program year for Food Stamp E&T from September 1 - August 31 to October 1 - September 30, would require that Board programs will follow three non-aligned program years and that such a system would require an inordinate amount of time and duplicative efforts to develop partial-year budgets and contracts for program operators. The second commenter suggested that the Commission not change the Food Stamp E&T program year so that it will continue to align with the program years of the Child Care, Choices, and Welfare-to-Work programs. The second commenter further recommended that all programs follow a single program year, where allowed by law.

Response: The Commission recognizes that the establishment of policies that align workforce services across differing categorical populations and different program years plays an important part in the full integration of programs within the Texas Workforce Centers. The proposal to change the Food Stamp E&T program year to align with the federal fiscal year was an attempt to simplify the financial reporting requirements and ensure timely closeouts. However, with the expansion of these services into currently unserved counties and desire to align services more closely with other workforce services, including Choices, the Commission agrees to change the rule to retain the current program year designation of September 1 through August 31.

Comment: Regarding §800.58(f)(1), one commenter stated that sufficient funds must be used for direct child care services to ensure Commission-approved child care targets are met. The commenter stated that the proposed rule indicates that the Board's primary responsibility in administering the Child Care program is to ensure that adequate quantities of children are placed in care and that quality initiatives are a secondary priority. While quality child care initiatives are provided through such vehicles as the TWC Train Our Teachers (TOT) program, the Board does not believe that such activities are adequate to address the needs for quality child care in its local workforce development area. The commenter said that local control of quality child care funds has allowed the Board to establish quality activities such as Child Development Associate training and providing technical assistance to child care providers adding that quality, affordable child care is essential to the success of workforce development programs and to the long-term economic health of the State, both now and in years to come. The commenter further stated the Board's commitment to developing local quality child care resources and urged TWC to continue in efforts to secure additional quality child care funding. Another commenter asked whether the performance targets for Boards would be raised if the Board expended less than 4% of the Child Care funds on quality activities. In other words, the commenter asked whether their Boards would be required to serve more children per day if the Board chose to spend less than 4% on quality activities.

Response: The Commission recognizes that child care represents an essential support service for low-income, working parents and has taken every opportunity to communicate that belief during the legislative process in order to provide child care services to low-income parents and to continue activities that promote quality care for children. In the General Appropriations Act, 77th Legislature, Regular Session, funding levels were set and the Commission and local workforce boards were instructed to ensure that direct child care services were provided to an average of 107,744 children whose families are transitioning from welfare to employment or working and determined to be at-risk. As a result, the Commission eliminated the previous requirement that Boards expend at least 4% of their total child care allocation on quality activities, allowing Boards to determine what amount is appropriate to expend on quality activities in the workforce area while continuing to meet the area's performance target. Boards may also choose to use the federal funds drawn down through local donations, transfers and certifications to support quality initiatives.

Comment: Two commenters supported the elimination of the Fund Utilization and Service Level Report and Plan requirements. Due to the on-going enhancement of state and local financial and programmatic reporting systems, this additional report added little value to performance management.

Response: The Commission appreciates the support and feedback from the Boards regarding enhancement of the state and local financial and reporting systems.

Comment: Regarding §800.73, one commenter recommended changing the expenditure requirements in (a) (1), (2) and (3) as follows: (1) expenditure level of 20% by the end of the 4th month; (2) expenditure level of 50% by end of 8th month; and (3) at least 90% for child care for all board areas, regardless of allocation size, 90% for Choices and 90% for WtW general revenue funds. The recommendation was based on the concern that as funds vary from one contract period to the next, it is highly desirable to ensure continuity of service if funding levels decrease. The ability to carry forward up to 10% of the prior year allocation would allow Board areas to be proactive in ensuring service, in the event of a funding decrease in the subsequent year.

Response: The Commission appreciates the Board's desire to reserve a cushion of funds for use in tight budget years. However, steps by Congress and the Legislature to evaluate the timely expenditure of funds and rescind or otherwise remove spending authority provides clear indication that states and local workforce boards must spend funds during the period for which the appropriation was made, and minimize amounts to be carried forward into future budget periods. Therefore, the Commission does not agree to change the expenditure amounts listed in the rule.

Comment: Regarding § 800.74(d), one commenter stated appreciation for the flexibility allowing for the voluntary deobligation of funds by a board. Another commenter recommended that because funds are allocated to a local workforce development area on behalf of its residents, the Commission should require that any request for voluntary deobligation of funds be in writing and include the signatures of both the board chair and the designated chief elected official for the area seeking deobligation. The Commenter stated that such oversight will ensure that the interests of local communities are taken into account in as full a manner as possible.

Response: The Commission understands the commenter's concern about the Board chairs and chief elected officials (CEOs) being involved in their local workforce board's decisions regarding the use of allocated funds. The Commission notes that state law establishes the duties of CEOs, and directs that they determine among themselves how local resources are to be allocated within the workforce area and how they are to be kept informed regarding workforce development activities. The Commission believes that mechanisms already exist to allow each area to include CEO approval of voluntary deobligations, if desired by the local community. However, the Commission believes access to such information is critical. As a result, the Commission will amend the rule to require that the Board chair sign any written request to the Commission for voluntary deobligation of funds from an area and that the Board chair notify the designated CEO of that area concurrently with the notification to the Commission.

Comment: Regarding §800.75(b)(1)(G), one commenter stated concern about the re-obligation of funds and not being available to an area if the board is under sanction. Some flexibility of these rules may allow an area to meet performance and come out from under sanctions. Regarding § 800.75(b)(2) and (3), one commenter recommended that item (1)(G) be included for these sections as well, which requires that a Board not be under sanction to receive reallocated funds.

Response: The Commission agrees that the Commission should consider other factors including sanctions to determine eligibility for reallocations and that the provisions in §800.75(b)(1) where applicable should relate to §800.75(b)(2) and (b)(3). For that reason the Commission agrees to clarify the language in (b)(2) and (b)(3) to reflect that the factors in (b)(1) also may be considered in evaluating reallocations.

Comment: One commenter recognized that the Commission is striving to ensure that workforce funds are fully utilized while holding true to Texas' vision for local control and efficient State government, congratulated the Commission on this endeavor, and supported the effort to simplify these processes while maintaining a system for the timely redistribution of allocated funds.

Response: The Commission appreciates the continued relationship with the Local Workforce Development Boards and the feedback received from the Boards and the public regarding the proposed rules. After consideration of the comments, the Commission does see a need to change the rules as a result of the comments.

For information about the Commission please visit our web page at www.texasworkforce.org.

Subchapter A. GENERAL PROVISIONS

40 TAC §800.2

The amendment is adopted under Texas Labor Code §§301.061 and 302.002, which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities.

The amendment affects Texas Labor Code, Chapter 302, and Texas Human Resources Code, Chapters 31 and 44.

§800.2.Definitions

The following words and terms, when used in this Part 20, relating to the Texas Workforce Commission, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Agency--The unit of state government established under Texas Labor Code Chapter 301 that is presided over by the Commission and administered by the Executive Director to operate the integrated workforce development system and administer the unemployment compensation insurance program in this state as established under the Texas Unemployment Compensation Act, Texas Labor Code Annotated, Title 4, Subtitle A, as amended. The definition of "Agency" shall apply to all uses of the term in rules contained in this Part 20, or unless otherwise defined, relating to the Texas Workforce Commission that are adopted after February 1, 2001.

(2) Allocation--The amount approved by the Commission for expenditures during a specified period, according to specific state and federal requirements.

(3) Board--A Local Workforce Development Board created pursuant to Texas Government Code §2308.253 and certified by the Governor pursuant to Texas Government Code §2308.261. This includes such a Board when functioning as the Local Workforce Investment Board as described in the Workforce Investment Act §117 (29 U.S.C.A. §2832), including those functions required of a Youth Council, as provided for under the Workforce Investment Act §117(i). The definition of "Board" shall apply to all uses of the term in the rules contained in this Part 20, or unless otherwise defined, relating to the Texas Workforce Commission that are adopted after February 1, 2001.

(4) Child Care--Child care services funded through the Agency, which may include services funded under the Child Care and Development Fund, Welfare-to-Work, WIA, and other funds available to the Agency or a Board to provide quality child care to assist families seeking to become independent from, or who are at risk of becoming dependent on, public assistance while parents are either working or participating in educational or training activities in accordance with state and federal statutes and regulations.

(5) Choices--The employment and training activities created under §31.0126 of the Human Resources Code and funded under TANF (42 U.S.C.A. 601 et seq.) to assist persons who are receiving temporary cash assistance, transitioning off, or at risk of becoming dependent on temporary cash assistance or other public assistance in obtaining and retaining employment. Formerly known as Job Opportunities and Basic Skills Training (JOBS).

(6) Commission--The body of governance of the Texas Workforce Commission composed of three members appointed by the Governor as established under Texas Labor Code §301.002 that includes one representative of labor, one representative of employers and one representative of the public. The definition of "Commission" shall apply to all uses of the term in rules contained in this Part 20, or unless otherwise defined, relating to the Texas Workforce Commission that are adopted after February 1, 2001.

(7) Core Outcome Measures--Workforce development services performance measures adopted by the Governor and developed and recommended through the Texas Council on Workforce and Economic Competitiveness (TCWEC). The 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.

(8) Executive Director--The individual appointed by the Commission to administer the daily operations of the Agency, which may include a person delegated by the Executive Director to perform a specific function on behalf of the Executive Director.

(9) Food Stamp Employment and Training (FSE&T) Activities--The activities authorized and engaged in as specified by federal Food Stamp Employment and Training statutes and regulations (7 U.S.C.A. 2011), and Chapter 813 of this title relating to Food Stamp Employment and Training.

(10) One-Stop Service Delivery Network--A one-stop-based network under which entities responsible for administering separate workforce investment, educational and other human resources programs and funding streams collaborate to create a seamless network of service delivery that shall enhance the availability of services through the use of all available access and coordination methods, including telephonic and electronic methods. Also referred to as the Texas Workforce Network.

(11) Performance Measure--An expected performance outcome or result.

(12) Performance Standard--A contracted numerical value setting the acceptable and expected performance outcome or result to be achieved for a performance measure, including Core Outcome Measures.

(13) Program Year--The twelve-month period applicable to the following as specified:

(A) Child Care: September 1--August 31;

(B) Choices: September 1--August 31;

(C) Welfare-to-Work: September 1--August 31;

(D) Food Stamp Employment and Training: September 1--August 31; and

(E) WIA Adult, Dislocated Worker, and Youth: July 1--June 30.

(14) TANF--Temporary Assistance for Needy Families, which may include temporary cash assistance and other temporary assistance for eligible individuals, as defined in the Personal Responsibility and Work Opportunities Reconciliation Act of 1996, as amended (7 U.S.C.A. §201.1 et seq.) and the Temporary Assistance for Needy Families statutes and regulations. (42 U.S.C.A. §601 et seq., 45 C.F.R. Parts 260-265) Formerly named Aid to Families with Dependent Children (AFDC).

(15) TCWEC--Texas Council on Workforce and Economic Competitiveness appointed by the Governor pursuant to Texas Government Code §2308.052 and functioning as the State Workforce Investment Board (SWIB), as provided for under the Workforce Investment Act §111(e) (29 U.S.C.A. §2821(e)). In addition, pursuant to the Workforce Investment Act §194(a)(5) (29 U.S.C.A. §2944(a)(5)), TCWEC maintains the duties, responsibilities, powers and limitations as provided in Texas Government Code §§2308.101-2308.105.

(16) Texas Workforce Center Partner--an entity which carries out a workforce investment, educational or other human resources program or activity, and which participates in the operation of the One-Stop Service Delivery Network in a local workforce development area consistent with the terms of a memorandum of understanding entered into between the entity and the Board.

(17) WIA--Workforce Investment Act, Public Law 105-220, 29 U.S.C.A. §2801 et seq. References to WIA include references to WIA formula allocated funds unless specifically stated otherwise.

(18) WIA formula allocated funds--funds allocated by formula to local workforce development areas for each of the following separate categories of funding: WIA Adult, Dislocated Worker and Youth (excluding the Secretary's and Governor's reserve funds and rapid response funds).

(19) Local Workforce Development Area--Workforce development areas designated by the Governor pursuant to Texas Government Code §2308.252 and functioning as a Local Workforce Investment Area, as provided for under the Workforce Investment Act §116 and §189(i)(2) (29 U.S.C.A. §§2831 and 2939). Also referred to as workforce area.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 14, 2001.

TRD-200104682

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: September 3, 2001

Proposal publication date: June 29, 2001

For further information, please call: (512) 463-2573


Subchapter B. ALLOCATIONS AND FUNDING

40 TAC §§800.51, 800.52, 800.58, 800.61

The repeal is adopted under Texas Labor Code §§301.061 and 302.002, which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities.

The repeal affects Texas Labor Code, Chapter 302, and Texas Human Resources Code, Chapters 31 and 44.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 14, 2001.

TRD-200104683

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: September 3, 2001

Proposal publication date: June 29, 2001

For further information, please call: (512) 463-2573


40 TAC §§800.51, 800.52, 800.58, 800.61, 800.71 - 800.75

The new rules are adopted under Texas Labor Code §§301.061 and 302.002, which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities.

The new rules affect Texas Labor Code, Chapter 302, and Texas Human Resources Code, Chapters 31 and 44.

§800.74.Deobligation of Funds

(a) For deobligation of Child Care (excluding unmatched federal Child Care funds that are contingent upon a Board securing local funds), Choices, Welfare-to-Work general revenue funds, and Food Stamp Employment and Training funds, the Commission may, for the category of funding:

(1) deobligate all or part of the difference between a Board's actual expenditure level and the target expenditure level described in §800.73(a) and (b) of this subchapter, relating to Expenditure, Local Match and Obligation Levels, as applicable for each category of funding for that period; and

(2) consider a Board's justification of current and projected service levels and related performance data in determining to deobligate.

(b) For deobligation of unmatched federal Child Care funds that are contingent upon a Board securing local funds, the Commission may deobligate, at any time following the fourth month of the program year, all or part of the difference between a Board's actual level of secured and completed match and the level of performance that is required as described in §800.73(c) of this subchapter, relating to Expenditure, Local Match, and Obligation Levels.

(c) For deobligation of WIA formula allocated funds for each separate category of funds related to WIA Adult, Dislocated Worker and Youth, the Commission shall deobligate funds from each of these categories of funding as follows:

(1) after the end of the twelfth month following the beginning of a program year, any unobligated funds which exceed 20% of the allocation for each category of WIA formula allocated funds for that program year, less any amount reserved up to 10% for costs of administration; and

(2) after the end of the 24th month following the beginning of a program year, any unexpended funds of the program year allocation for each category of WIA formula allocated funds.

(d) For voluntary deobligation, a Board may submit a written request that the Commission deobligate a portion of the workforce area's allocation for one or more categories of funding. The Board chair must sign the written request and concurrently notify the designated chief elected official of the workforce area of the written request for the deobligation of funding.

§800.75.Reallocation of Funds

(a) Reallocation.

(1) For reallocation of Child Care, including unmatched federal funds that are contingent upon a Board securing local funds, Choices, Welfare-to-Work general revenue funds, and Food Stamp Employment and Training funds, the Commission may reallocate funds to an eligible workforce area based on the applicable allocation method set forth in this subchapter and may modify the amount to be reallocated by considering the following:

(A) the amount specified in the Board's written request for additional funds;

(B) the ability of the Board to expend funds to address the need for services in the workforce area;

(C) Board performance during the prior program year; and

(D) related factors as necessary to ensure that funds are fully utilized.

(2) For WIA formula fund allocations, the Commission shall reallocate funds as provided in WIA §§128 and 133.

(b) Eligibility.

(1) For a workforce area to be eligible for a reallocation of Child Care (excluding unmatched federal funds that are contingent upon a Board securing local funds), Choices, Welfare-to-Work general revenue funds, and Food Stamp Employment and Training funds, the Commission may consider whether a Board:

(A) has met targeted expenditure levels as required by §800.73(a) and (b) of this subchapter, as applicable, for that period;

(B) has not expended more than 100% of the workforce area's allocation for the category of funding;

(C) has demonstrated that expenditures conform to cost category limits for funding;

(D) has demonstrated the need for and ability to use additional funds;

(E) is current on expenditure reporting;

(F) is current with all single audit requirements; and

(G) is not under sanction.

(2) For a workforce area to be eligible for a reallocation of unmatched federal Child Care funds that are contingent upon a Board securing local funds, the Commission may consider whether a Board has met the level for securing and completing local match requirements set out in §800.73(c) of this subchapter, relating to Expenditure, Local Match, and Obligation Levels. The Commission may also consider the factors listed in paragraph (1) of this section that apply, including factors referenced in subparagraphs (B) -(G).

(3) For a workforce area to be eligible for a reallocation of WIA formula allocated funds, the Commission may consider whether a Board has met the obligation or expenditure requirement for the applicable category of WIA formula allocated funds applicable to the program year. The Commission may also consider the factors listed in paragraph (1) of this section that apply, including factors referenced in subparagraphs (B) - (G).

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 14, 2001.

TRD-200104680

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: September 3, 2001

Proposal publication date: June 29, 2001

For further information, please call: (512) 463-2573


Subchapter C. REALLOCATION OF FUNDS

40 TAC §§800.81 - 800.86

The repeal is adopted under Texas Labor Code §§301.061 and 302.002, which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities.

The repeal affects Texas Labor Code, Chapter 302, and Texas Human Resources Code, Chapters 31 and 44.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 14, 2001.

TRD-200104681

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: September 3, 2001

Proposal publication date: June 29, 2001

For further information, please call: (512) 463-2573


Chapter 809. CHILD CARE AND DEVELOPMENT

The Texas Workforce Commission (Commission) adopts amendments to Subchapter A. General Provisions, §809.2; Subchapter B. General Management Requirements, §809.20 and §809.15; Subchapter G. Child Care for People Transitioning off Public Assistance, §809.103 and §809.105; and Subchapter K. Funds Management, §§809.221 and 809.225, relating to child care services with changes to the proposed text as published in the June 29, 2001 issue of the Texas Register (26 TexReg 4848). The Commission adopts amendments to Subchapter A. General Provisions, §809.1; the repeal of Subchapter A. General Provisions, §809.5; amendments to Subchapter B. General Management Requirements, §809.11 and §809.14; Subchapter C. Requirements to Provide Child Care, §§809.43, 809.46-809.48; Subchapter D. Self-Arranged Care, §809.61; Subchapter G. Child Care for People Transitioning off Public Assistance, §809.101, §809.102 and §809.104; the repeal of Subchapter I. Child Care Training Center Pilot Programs, §§809.171-809.174; and amendments to Subchapter K. Funds Management, §809.231 and §809.233 without changes to the proposed text. These rules will not be republished.

The purposes of amending the rules are to offer clarification of priorities for service, adjust the parent's share of cost provision, incorporate the new Texas Rising Star provider identity for Designated Vendors, which includes higher reimbursement rates, and remove unnecessary provisions.

The rule amendments continue to require placing eligible Choices, Transitional or Texas Workforce Applicants' children into care. However, the rule amendments make clear that if necessary, due to the limitation of funds, a child's care may be discontinued to ensure that the statutory and regulatory priorities receive child care services. Therefore, a Board must ensure that policies are in place for discontinuing child care services for families that are other than Choices, Transitional, or Texas Workforce Applicants if funding is limited. The amendments ensure that funds are used for low-income families who are working or are in training or educational activities and who must receive child care services to assist them in becoming self-sufficient.

The exemption to the parent's share of cost provision relating to Temporary Assistance for Needy Families (TANF) is changed to an exemption for Choices participants. The purpose for the rule change is to provide for the exemption from paying a parent's share of cost for persons participating in the Choices services or activities who are working, in training or in an education activity. The intent of the rule change is to encourage parents to voluntarily participate in Choices if they are still receiving TANF, thus making them eligible for a broader range of services and further assisting them in becoming self-sufficient. TANF recipients who are not mandatory or voluntary participants in a Choices service or activity will be responsible for paying the parent's share of cost as determined by the Board.

The rule amendments also remove the parent's share of cost exemption for Supplemental Security Income (SSI) recipients to provide for the exemption from the parent's share of cost to apply only to Choices participants.

The rule amendments replace the Designated Vendor title with the new Texas Rising Star provider identity. This title has been established in coordination with local Boards and contractors and more accurately describes the higher quality of care that is found in these facilities. In addition, the rule amendments incorporate references to the statutory change resulting from House Bill 3333, 76th Legislature, Regular Session (1999), which put into place a minimum five percent increase in the reimbursement rate for Designated Vendor (Texas Rising Star) providers as long as the rate does not exceed the published rate and incorporated a provision that each Board shall establish graduated reimbursement rates for child care based on the Texas Workforce Commission's Designated Vendor program. Specifically, the bill required that the reimbursement rate for Designated Vendors must be at least five percent greater than the maximum rate established for nondesignated vendors for the same category of care and that the Designated Vendor rate differential shall be funded with the federal Child Care and Development Funds (CCDF) dedicated to quality improvement activities.

The rule amendments remove certain portions of the rules that are obsolete or have expired, such as the child care training center pilot programs.

For purposes of this preamble, the term "Agency" refers to the daily operations of the Texas Workforce Commission under the direction of the executive director, and the term "Commission" refers to the three-member body of governance composed of Governor-appointed members.

In §809.1, subsection (b), the word "or" replaces the word "and". Also, in section (b), the phrase "continues to" is deleted, and the word "administer" is changed to plural form.

In §809.2, paragraphs (1) and (2), the definitions regarding the Board and Child Care are redefined which are consistent with §800.2. Changes have been made to paragraph (2) clarification purposes regarding the role of the Commission.

Section 809.5. Child Care State Advisory Committee is repealed in its entirety.

In §809.14, paragraph (3) of subsection (a), the phrase "Designed Vendor standards of" is replaced by the phrase "Texas Rising Star criteria as established by." In addition, the phrase "(formerly known as the Designated Vendor criteria)" is appended to the end of subsection (b). In subsection (d), the phrase "Designated Vendor" is replaced by the phrase "Texas Rising Star Provider."

In §809.15, subsection (b), the phrase "Designated Vendor criteria" is replaced by the phrase "Texas Rising Star Provider criteria." In addition, the phrase "(formerly known as the Designated Vendor criteria)" is appended to the end of subsection (b). In subsection (d), the phrase "Designated Vendor" is replaced by the phrase "Texas Rising Star Provider."

In §809.20, subsection (f), changes have been made for clarification purposes.

In §809.46, subparagraph (B) of paragraph (2) of subsection (a), the sentence was removed, and the subsequent subsections were renamed appropriately.

In §809.61, a new subsection (c) was inserted between subsection (b) and subsection (c). All subsections following the new subsection (c) were renamed appropriately.

In §809.103, subsection (c), the phrase "one year" was replaced by the phrase "12 months or until the family reaches the Board's income limit for eligibility, whichever occurs first. Subject to the availability of funds and the continuing employment of the parent(s), children who are otherwise eligible for at-risk child care and whose time limit for Applicant child care has expired, may be continued in care subject to the Board's policies for at-risk child care. At-risk care includes eligibility under any provision contained in Subchapter H of this title relating to Children of Parents At-Risk of Becoming Dependent on Public Assistance."

In §809.105, changes were made to clarify TDPRS Child Care.

Subchapter I. Child Care Training Center Pilot Programs is repealed in its entirety.

§809.221 was reworded entirely for clarification purposes.

In §809.225, subsection (c), the phrase "if eligible to receive care based on other eligibility criteria or if the Texas Department of Protective and Regulatory Services (TDPRS) or its case worker indicates that the child is in need of protective services." was replaced by the phrase "if the children are otherwise eligible under the Board's child care policies and meet the minimum requirements for eligibility set forth in the federal regulations, and if it does not result in removing another child from care. Children Needing to Receive Child Protective Services (CPS) referred by a TDPRS CPS worker that are no longer funded through TDPRS shall remain in care for the period of time determined appropriate by TDPRS. The provision of care shall not exceed six months and shall not result in another child being removed from care. In addition, the entire subsection (d) was deleted. Changes were made to these subsections to clarify TDPRS Child Care.

In §809.231, a new subsection (b) was added, subsequent subsections were renamed appropriately, and a new subsection (e) was added.

In§809.233, paragraph (1), each phrase stating "parent fees" was replaced by the phrase "parent's share of costs."

The Commission received comments on the rules from five commenters, which included:

the Alamo Workforce Development Board,

the Coastal Bend Workforce Development Board,

the North Central Workforce Development Board,

the Southeast Workforce Development Board, and

the West Central Workforce Development Board.

The commenters expressed support for the rules and one commenter asked questions related to the rules. The comment summaries and the responses are as follows:

Comment: Regarding §809.46, Assessing and Collecting Parent's Share of Cost, one commenter stated appreciation for the flexibility to review and assess families for the parent's share of cost. The commenter also stated that the proposed rule will provide the Board with the latitude of evaluating and determining any policy changes of assessing parent's share of cost to others if the financial circumstances require such action and that the parent's share of cost is one tool to assist the families in assuming the parental responsibilities that are a part of self-sufficiency.

The Commission agrees with the commenter's statements and appreciates the feedback on the proposed changes to the rules.

Comment: Regarding §809.105, one commenter recommended that if continued coordination with TDPRS is required, Boards should be able to count these children in the Board's performance measures.

Response: The Commission agrees that any child care services for former TDPRS children paid for out of the Commission's child care allocation to the local workforce development areas should be counted in the Board's performance measures. However, the performance targets stipulated by the Legislature for the Commission and Boards currently are based on the child care funds allocated by the Commission, which reflects the average number of children in care and excludes children receiving child care services funded by TDPRS.

Comment: Regarding §809.225, one commenter questioned why the TDPRS children should be given priority over other children in care, especially in the light of the demands for funds resulting from the expected increase in the number of Choices clients needing child care. The commenter explained that if the TDPRS refers a child to an open slot and fills that slot and then the following week a Choices eligible child needs care, there are no more available slots because the TDPRS child is filling that slot. Regarding §809.225(c), another commenter stated that it was not clear whether former TDPRS children will need to meet income guidelines as a requirement for receiving care.

Response: The Commission acknowledges that there are concerns regarding which children receive priority care. However, the Commission intends that, consistent with the Federal CCDF regulations at 45 CFR 98.44, children with special needs are given priority for care. Specifically, children needing protective services are included in the definition of "children with special needs" as reflected in the State's CCDF Plan. As §809.221 stipulates, TDPRS children that were formerly funded by TDPRS, who have been determined on a case-by-case basis by TDPRS to need protective services related child care (former TDPRS children needing protective services related child care) are in the second tier of priority and do not take precedence over children eligible for Choices and Transitional child care. TDPRS children that were formerly funded by TDPRS which have not been determined by TDPRS to need protective services related child care (former TDPRS funded children not needing protective services related child care) are not included in this priority; however, such children may be eligible for care as at-risk care. Sections 809.221 and 809.225 both indicate that continuing former TDPRS children determined to need protective services related child care after the children are no longer eligible for TDPRS funding is contingent on not requiring that another child be removed from care. Beyond those provisions, the Board is able to set further priorities related to former TDPRS children not determined to need protective services related child care.

Comment: Regarding §809.221(a)(2), one commenter recommended that in order to enhance the funds allocation flexibility to the Boards, it would be more feasible to allow Boards to set up priority groups to address local needs and the commenter agreed that Choices Child Care be listed as 1, Transitional Child Care listed as 2, Workforce Orientation for Applicants listed as 3 along with at risk, teen parents and children with disabilities. Regarding §809.103 and §809.221, another commenter stated that clarification is appreciated on the listing of priorities as well as the addition of TDPRS children in the second priority.

Response: The State and federal welfare reform work requirements demand that priority for child care services be given to parents participating in Choices activities. A reference to the Choices Child Care in state law may be found at Texas Human Resources Code Section 31.012(e) and is included in Child Care rules at Section 809.102. State law further establishes Transitional Child Care as a priority pursuant to Human Resources Code Section 31.0035(e). This priority is specified in the Child Care rules at 40 TAC §809.101. The Commission's own rules established Workforce Orientation Applicant (WOA) Child Care as a priority in order to provide assistance to parents to enable them to support themselves and their children. Child Care services may help parents continue working or attending school or training; thus saving time-limited benefits for the future. The Commission rule at 40 TAC §809.103 sets forth the provisions relating to Texas Workforce Applicant Child Care.

The priority for TDPRS children is a requirement as referenced in the Federal CCDF regulation at 45 CFR §98.44, which requires that children with special needs be given priority for care. "Children with Special Needs" as defined in the State's CCDF Plan, includes children needing protective services that were formerly funded by TDPRS and which TDPRS has on a case-by-case basis determined that the child needs protective services related Child Care.

Because of the statutory and policy rationale for the particular priorities as set forth in this response, the Commission does not see a need to move the priority for Texas Workforce Applicants to a lower priority. Once the referenced priorities are served, the Commission intends that Boards may exercise local flexibility to establish other priority groups for child care services such as priorities for children in at-risk families, teen parents, and children with disabilities.

Comment: Regarding §809.231(b), one commenter stated that the Texas Rising Star providers have expressed concern about not being able to receive higher payments as a result of providing higher quality care because their published rate is under the Board's maximum rate. Private pay families force the provider's published rate to stay lower. The commenter suggested that the Commission might allow the payment of 5 percent over the published rate but not to exceed the Board's maximum rates, affecting more providers operating at lower rates.

Response: House Bill 3333, 76th Legislature, Regular Session (1999), which put into place a minimum five percent increase in the reimbursement rate for Texas Rising Star providers as long as the rate does not exceed the published rate and incorporated a provision that each Board shall establish a graduated reimbursement rate for child care based on the Texas Workforce Commission's Designated Vendor (Texas Rising Star) program. Specifically, the bill required that the reimbursement rate for Designated Vendors (Texas Rising Star Providers) must be at least five percent greater than the maximum rate established for nondesignated vendors for the same category of care and that the designated vendor rate differential shall be funded with the federal CCDF dedicated to quality improvement activities. The Boards have the flexibility to set maximum rates consistent with the Commission's rule at §809.231 regarding Provider Reimbursement Rates. The financial management reporting requirements dictate that the State may not pay more than the published or market rate for a service.

Comment: One commenter expressed appreciation for the changes to the rule that provide exemption for Choices participants rather than TANF recipients from the co-payment process because the commenter believes that this change will encourage individuals to voluntarily participate in the Choices program. The commenter also stated that the Commission has done well in eliminating unnecessary parts of the rule and adding local flexibility when possible.

Response: The Commission appreciates the support of and input from the Boards in commenting on the rules and providing valuable feedback to assist the Commission in setting policies designed to help working parents obtain and retain a job.

After consideration of the comments received and for the reasons stated, the Commission agrees to make some changes to the proposed language at this time.

For information about the Commission please visit our web page at www.texasworkforce.org.

Subchapter A. GENERAL PROVISIONS

40 TAC §809.1, §809.2

The rule amendments are adopted under Texas Labor Code §§301.061 and 302.002, which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities.

The rules affect Texas Labor Code, Chapter 302, and Texas Human Resources Code, Chapters 31 and 44.

§809.2.Definitions.

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

(1) Board--A Local Workforce Development Board created pursuant to Texas Government Code §2308.253 and certified by the Governor pursuant to Texas Government Code §2308.261. This includes such a Board when functioning as the Local Workforce Investment Board as described in the Workforce Investment Act §117 (29 U.S.C.A. §2832), including those functions required of a Youth Council, as provided for under the Workforce Investment Act §117(i). The definition of "Board" shall apply to all uses of the term in the rules contained in this Part 20, or unless otherwise defined, relating to the Texas Workforce Commission that are adopted after February 1, 2001.

(2) Child Care--Child care services funded through the Commission, which may include services funded under the Child Care and Development Fund, Welfare-to-Work, WIA, and other funds available to the Commission or a Board to provide quality child care to assist families seeking to become independent from, or who are at risk of becoming dependent on public assistance while parents are either working or participating in educational or training activities in accordance with state and federal statutes and regulations.

(3) Commission--The Texas Workforce Commission.

(4) Grant Recipient--The entity approved by the Commission under Texas Government Code §2308.263.

(5) Local workforce development area--The designated geographic area for which a Board provides services funded through the Commission, pursuant to Texas Government Code §2308.252.

(6) Parent--An individual responsible for the care and supervision of the child identified as the child's natural parent, adoptive parent, stepparent, or legal guardian.

(7) Provider--A person or entity that meets the minimum qualifications as set forth in this chapter for providing child care funded through the Commission. Unless specifically stated otherwise, the term "provider" does not refer to a self-arranged provider.

(8) Self-arranged provider--A person or entity that meets the minimum qualifications for providing self-arranged child care as set forth in this chapter.

(9) TANF--Temporary Assistance for Needy Families provided for under the federal Personal Responsibility and Work Opportunity Reconciliation Act and the Temporary Assistance for Needy Families block grant statutes and regulations, as amended.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 14, 2001.

TRD-200104688

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: September 3, 2001

Proposal publication date: June 29, 2001

For further information, please call: (512) 463-2573


40 TAC §809.5

The rule is repealed under Texas Labor Code §§301.061 and 302.002, which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities.

The repeal affects Texas Labor Code, Chapter 302, and Texas Human Resources Code, Chapters 31 and 44. Subchapter A. General Provisions

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 14, 2001.

TRD-200104687

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: September 3, 2001

Proposal publication date: June 29, 2001

For further information, please call: (512) 463-2573


Subchapter B. GENERAL MANAGEMENT REQUIREMENTS

40 TAC §§809.11, 809.14, 809.15, 809.20

The rule amendments are adopted under Texas Labor Code §§301.061 and 302.002, which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities.

The rules affect Texas Labor Code, Chapter 302, and Texas Human Resources Code, Chapters 31 and 44.

§809.15.Quality Improvement Activities.

(a) A Board shall ensure that providers receive orientation, technical assistance, and ongoing training to improve the quality of child care.

(b) A Board shall ensure that the quality of child care is improved by recognizing providers who voluntarily exceed the minimum regulatory standards set by the Texas Department of Protective and Regulatory Services by using the Texas Rising Star Provider criteria (formerly known as the Designated Vendor criteria) as established by the Commission.

(c) A Board shall ensure that the quality of child care is improved by using quality improvement activities including, but not limited to, the activities described in 45 Code of Federal Regulations §98.51, except the Boards may not provide loans.

(d) In addition to the Texas Rising Star Provider criteria, a Board may establish other voluntary criteria for improving quality and recognize providers that meet or exceed the voluntary standards for quality.

(1) The quality improvement criteria may include, but are not limited to one or more of the following activities:

(A) reducing group sizes;

(B) improving health and safety conditions;

(C) improving linkage to parents and community services; or

(D) improving teacher training.

(2) Boards may also choose to recognize professional accreditation as a means to improve quality.

§809.20.Leveraging Local Resources.

(a) Leveraging Local Funds. The Commission encourages Boards to secure local public and private funds for match to the extent possible to leverage all available resources for child care needs in the community.

(1) A Board may secure local funds for match in the form of one or more of the methods in order to leverage (match) against federal funds available through the Commission:

(A) donations of funds from a private entity;

(B) transfers of funds from a public entity; or

(C) certifications of expenditures by a public entity that represent expenditures eligible for federal match.

(2) A Board's performance in securing and leveraging local funds for match may make the Board eligible for incentive awards.

(b) Securing Local Funds to Access Federal Matching Funds from the Commission.

(1) A Board shall manage the securing of funds, including the selection of pledged and completed donations, transfers, and certifications that are used by the Board to receive federal matching funds through the Commission.

(2) A Board shall ensure that federal matching funds are maximized by securing local funds for match in an amount that may exceed the amount required to match available federal funds.

(c) Documenting Pledged Donations, Transfers and Certifications. A Board shall maintain written documentation of pledged donations, transfers and certifications that contain, at a minimum, the following:

(1) the signature of the representative of the Board;

(2) the signature of the potential contributor;

(3) the potential contributor's commitment to fulfill the pledge of the donation, transfer or certification by paying or certifying the funds to the Commission for use in a specific workforce area on a set payment or certification schedule;

(4) the Board's commitment to use the donated or transferred funds as requested by the contributor, as long as it is consistent with federal regulations at 45 CFR §98.53; and

(5) sufficient information to determine that the funds will be used in a manner consistent with 45 CFR §98.53.

(d) Submitting Pledged Donations, Transfers and Certifications for Acceptance by the Commission. A Board shall submit pledged donations, transfers, and certifications to the Commission for acceptance.

(e) Completing Donations, Transfers and Certifications.

(1) A Board shall ensure that donations of cash and transfers of funds are paid to the Agency and that certifications are also submitted to the Agency.

(2) Donations and transfers are considered complete to the extent that the funds have been paid to the Agency.

(3) Certifications are considered complete to the extent that a signed written instrument is delivered to the Agency that reflects that the public entity has expended a specific amount of funds on eligible child care services.

(f) Reporting. A Board shall report information relating to pledged and completed donations, transfers and certifications as referenced in subsections (d) and (e) of this section and §800.72. Reporting Requirements.

(g) Monitoring. A Board shall monitor the funds secured for match and the expenditure of any resulting funds to ensure that expenditures of unmatched federal funds available through the Commission do not exceed an amount that corresponds to the donations, transfers, and certifications that are completed by the end of the program year.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 14, 2001.

TRD-200104686

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: September 3, 2001

Proposal publication date: June 29, 2001

For further information, please call: (512) 463-2573


Subchapter C. REQUIREMENTS TO PROVIDE CHILD CARE

40 TAC §§809.43, 809.46 - 809.48

The rule amendments are adopted under Texas Labor Code §§301.061 and 302.002, which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities.

The rules affect Texas Labor Code, Chapter 302, and Texas Human Resources Code, Chapters 31 and 44.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 14, 2001.

TRD-200104685

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: September 3, 2001

Proposal publication date: June 29, 2001

For further information, please call: (512) 463-2573


Subchapter D. SELF-ARRANGED CARE

40 TAC §809.61

The rule amendment is adopted under Texas Labor Code §§301.061 and 302.002, which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities.

The rule affects Texas Labor Code, Chapter 302, and Texas Human Resources Code, Chapters 31 and 44.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 14, 2001.

TRD-200104684

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: September 3, 2001

Proposal publication date: June 29, 2001

For further information, please call: (512) 463-2573


Subchapter G. CHILD CARE FOR PEOPLE TRANSITIONING OFF PUBLIC ASSISTANCE

40 TAC §§809.101 - 809.105

The rule amendments are adopted under Texas Labor Code §§301.061 and 302.002, which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities.

The rules affect Texas Labor Code, Chapter 302, and Texas Human Resources Code, Chapters 31 and 44.

§809.103.Workforce Orientation Applicant Child Care.

(a) Children are eligible for Applicant Child Care if their parents meet the criteria for eligibility of children living at low incomes, as detailed in §809.121 of this chapter, (relating to Children Living At Low Incomes), and meet all of the following criteria:

(1) need child care to accept employment;

(2) receive a referral from the Texas Department of Human Services to attend a Workforce Orientation for Applicants; and

(3) locate employment prior to TANF certification.

(b) To receive Applicant Child Care, parents shall not have voluntarily terminated paid employment of at least 30 hours a week within 30 days prior to receiving the referral from the Texas Department of Human Services to attend a Workforce Orientation for Applicants, unless the voluntary termination was for good cause connected with the parent's work.

(c) Subject to the availability of funds and the continued employment of the parent(s), Applicant Child Care shall be provided for up to 12 months or until the family reaches the Board's income limit for eligibility, whichever occurs first. Subject to the availability of funds, children who are otherwise eligible for at-risk child care and whose time limit for Applicant child care has expired, may be continued in care subject to the Board's policies for at-risk child care. At-risk care includes eligibility under any provision contained in Subchapter H. of this title relating to Children of Parents at Risk of Becoming Dependent on Public Assistance.

§809.105.Children Receiving or Needing Protective Services.

(a) A Board shall ensure that determinations of eligibility for children needing protective services are performed by the Texas Department of Protective and Regulatory Services (TDPRS). Child care continues as long as authorized and funded by the TDPRS.

(b) In closed TDPRS Child Protective Services cases (TDPRS cases) where child care is no longer funded by the TDPRS, the following shall apply:

(1) Former TDPRS Children Needing Protective Services Related Child Care. Regardless of whether the family meets the income eligibility requirements of the Board or is working, or in an education or training activity, if the TDPRS determines on a case-by-case basis that the child continues to need protective services and child care is integral to that need, then the Board shall continue the child care by using other funds, including funds received through the Commission, for the child care slot for up to six months after the TDPRS case is closed; and

(2) Former TDPRS Children Not Needing Protective Services Related Child Care. If the family meets income eligibility requirements of the Board and if the TDPRS does not state on a case-by-case basis that the child continues to need protective services or child care is not integral to that need, then the Board may provide care subject to the availability of funds. To receive care under this paragraph (2) of this subsection, the parent must be working, or in a training or education activity.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 14, 2001.

TRD-200104689

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: September 3, 2001

Proposal publication date: June 29, 2001

For further information, please call: (512) 463-2573


Subchapter I. CHILD CARE TRAINING CENTER PILOT PROGRAMS

40 TAC §§809.171 - 809.174

The rules are repealed under Texas Labor Code §§301.061 and 302.002, which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities.

The repeal affects Texas Labor Code, Chapter 302, and Texas Human Resources Code, Chapters 31 and 44.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 14, 2001.

TRD-200104690

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: September 3, 2001

Proposal publication date: June 29, 2001

For further information, please call: (512) 463-2573


Subchapter K. FUNDS MANAGEMENT

40 TAC §§809.221, 809.225, 809.231, 809.233

The rule amendments are adopted under Texas Labor Code §§301.061 and 302.002, which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities.

The rules affect Texas Labor Code, Chapter 302, and Texas Human Resources Code, Chapters 31 and 44.

§809.221.General Funds Management.

Boards shall ensure that resources are proportionately allocated among the following priority groups so that child care services are assured for the first priority group, and then subject to the availability of funds, the remaining priorities in descending order are served.

(1) The first priority group includes children of parents eligible for the following:

(A) Choices Child Care as referenced in 809.102; and

(B) Transitional Child Care as referenced in 809.101.

(2) The second priority group includes:

(A) children of parents eligible for Workforce Orientation Applicant Child Care; and

(B) children who need to receive protective services related child care as referenced in §809.105(b)(1) of this Chapter.

(3) The third priority group includes any other priority adopted by the Board, which may include but is not limited to:

(A) teen parents;

(B) children with disabilities; or

(C) other persons at risk of becoming dependent on public assistance that meet the income eligibility level as determined by the Board.

§809.225. Continuity of Care.

(a) General Principle. Enrolled children shall receive child care as long as the parent remains eligible for any available source of Commission-funded child care except as otherwise provided under subsection (b) of this section.

(b) Exceptions. Nothing in this chapter shall be interpreted in a manner as to result in a child being removed from care, except when removal from care is required for child care to be provided to a child of parents eligible for one or more of the following types of priority child care:

(1) Choices Child Care under §809.102 of this Chapter,

(2) Transitional Child Care under §809.101 of this Chapter, or

(3) Workforce Orientation Applicant Child Care under §809.103 of this Chapter.

(c) Former Texas Department of Protective and Regulatory Services (TDPRS) children as referenced in §809.105(b)(1) of this Chapter shall also continue receiving child care funded through the Commission for the period chosen by TDPRS, which shall not exceed six months, so long as it does not result in another child being removed from care.

(d) Former TDPRS children as referenced in §809.105(b)(2) of this Chapter may continue receiving child care funded through the Commission if it does not result in removing another child from care.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 14, 2001.

TRD-200104691

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: September 3, 2001

Proposal publication date: June 29, 2001

For further information, please call: (512) 463-2573


Chapter 813. FOOD STAMP EMPLOYMENT AND TRAINING

The Texas Workforce Commission (Commission) adopts the repeal of Chapter 813, Subchapter A. General Provisions, §813.1 and §813.2; Subchapter B. Expenditure of Funds, §§813.11-813.14; Subchapter C. Allowable Activities for Participants, §§813.21-813.23; Subchapter D. Support Services for Participants, §§813.31-813.33; Subchapter E. Complaints and Appeals, §§813.41-813.43; and new Chapter 813, Subchapter A. General Provisions, §§813.1-813.3; Subchapter B. Access to Employment and Training Activities and Support Services, §813.11 and §813.12; Subchapter C. Expenditure of Funds, §813.22; Subchapter D. Allowable Activities, §813.31 and §813.32; Subchapter E. Support Services for Participants, §813.41; and Subchapter F. Complaints and Appeals, §§813.51-813.53, without changes as published in the June 29, 2001 issue of the Texas Register (26 TexReg 4856). The rules will not be republished.

The purposes of the repeal and new rules are to support the expansion of Food Stamp Employment and Training (E&T) activities and support services statewide by aligning Food Stamp E&T, Choices, work search and complementary requirements associated with Unemployment Insurance, and other work-related services through the Texas Workforce Network, and to provide more flexibility to assist Boards in the integration of Food Stamp E&T activities and support services into the Texas Workforce Centers as set forth in 40 TAC Chapter 801 Subchapter B relating to the Texas Workforce Center Network. The purpose of the new rules is also to more clearly state the role of the Boards in the oversight and management of the delivery of Food Stamp E&T activities and support services.

Subchapter A sets out the General Provisions. Section 813.1 states the purpose, §813.2 sets out the definitions and terms used in this chapter, and §813.3 sets out the general Board responsibilities.

Subchapter B sets out the provisions for access to employment and training activities and support services. Section 813.11 sets out board responsibilities regarding access to Food Stamp E&T Activities and Support Services, and §813.12 sets out participant responsibilities.

Subchapter C sets out Expenditure of Funds. Section 813.21 states who is to be served, §813.22 states what funds are designated for able-bodied adults without dependents (ABAWDs).

Subchapter D sets out the Allowable Activities. Section 813.31 sets out the allowable activities for ABAWDs, and §813.32 sets out the activities for all Food Stamp E&T mandatory work registrants.

Subchapter E sets out the Support Services for Participants. Section 813.41 is the general provision on support services, §813.42 discusses Child Care services, and §813.43 discusses the transportation assistance.

Subchapter F sets out Complaints and Appeals. Section 813.51 addresses appeals of decisions made on food stamp applications and benefits, §813.52 addresses appeals of Food Stamp E&T activities and services decisions, and §813.53 addresses discrimination complaints.

Statutory Background: The Food Stamp Act of 1977 requires non-exempt adults at least 16 years of age but less than 60 years of age, referred to the Texas Workforce Commission by the Texas Department of Human Services, to register for work and take part in Food Stamp E&T activities and support services. Failure to comply with these requirements may result in disqualification from the receipt of Food Stamp benefits. The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 requires able-bodied food stamp recipients at least 18 years of age but less than 50 years of age with no dependent children (ABAWDs) to work or participate in specific activities in order to receive Food Stamp benefits. Failure of ABAWDs to comply with these federal requirements will limit their assistance to three out of thirty-six (36) months.

Food Stamp E&T activities and support services are funded with 100% federal grant funds (100% funds) as well as 50% federal and 50% state funds (50/50 funds). Regarding the 100% funds, the Balanced Budget Act of 1997 authorized additional funds for ABAWDs and mandated that states utilize at least eighty percent (80%) of the 100% funds for qualifying work activities for ABAWDs. The remaining twenty percent (20%) of the 100% funds may be used to provide work activities specified in the Texas Food Stamp E&T State Plan, approved by the U.S. Department of Agriculture, for all mandatory work registrants. The remaining twenty percent (20%) of funds are not subject to the restrictions placed upon the eighty percent (80%) of the federal funds. The 50/50 funds may be used for Food Stamp E&T activities in addition to support services such as Child Care, transportation, and other expenses to assist participants in Food Stamp E&T activities with becoming self sufficient.

Purpose: The purpose of the rule changes related to Food Stamp E&T activities and support services is to facilitate the maintenance and continuous improvement of the One-Stop Service Delivery Network as established in Texas Government Code, Chapter 2308, and Texas Labor Code, Chapters 301 and 302. The rules provide the Boards with flexibility to more fully integrate Food Stamp E&T into the One-Stop Service Delivery Network. As part of the network, the goals of Food Stamp E&T activities and support services are consistent with and reflective of the Workforce Investment Act (WIA) one-stop principles and the principles of Texas' vision. The WIA principles are: streamlining services, empowering individuals, universal access, increased accountability, a 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.

The oversight and management by Boards of the delivery of Food Stamp E&T activities and support services outlined in the rules are intended to emphasize the role of the Boards in providing a seamless network of information and services that is responsive to the individual needs of customers, including persons engaged in the Food Stamp E&T activities and support services. The Commission intends that the Food Stamp E&T activities and support services be fully integrated through the available one-stop centers with the added flexibility identified in the rules.

The Commission received two comments on the rules. The commenters expressed support and agreement with the new rules. The two commenters included the Coastal Bend Workforce Development Board and the West Central Workforce Development Board. Comment summaries and responses are as follows.

One commenter expressed general support for all of the rules and expressed appreciation for the inclusion of additional activities in the rules that allow local areas to provide services in an integrated approach by allowing provision of activities similar to other workforce funding streams. Regarding §813.31 and §813.32, another commenter expressed support for the improvement the new rules provide over the current system. The commenter stated that the new rules allow Boards to better integrate Food Stamp services into Workforce activities, and offer a more positive approach to assisting Food Stamp clients, via the provisions to more basic skills, GED, and vocational training as well as a range of supportive services.

Response: The Commission appreciates the Boards' support of the new Food Stamp E&T Rules. The Commission agrees that the inclusion of additional activities will enhance integration by allowing the provision of services similar to other workforce funding streams. The Commission also agrees that this may help with the recruitment and enrollment of Food Stamp work registrants and increase their ability to secure employment and promote long-term self-sufficiency.

Comment: Regarding § 813.41(c)(1), one commenter indicated that the listing of Child Care as an allowable support service for Food Stamp clients was included in the rule and that currently the Board's Food Stamp E&T Child Care allocation was only sufficient to provide full time care for a few children. The commenter stated that the new rules should allow services to many more non-ABAWDs with children, and thus greatly increase the need for Child Care funding. The commenter also indicated that once the Food Stamp E&T Child Care allocation is exhausted, the only other source of funding would be Child Care allocation for Income Eligible children, which will be limited in FY2002 due to the increase in anticipated Choices clients and their need for Child Care. The commenter further suggested that the rules should allow Boards to reassign the Food Stamp E&T allocation as needed for Child Care.

Response: The Commission appreciates the concerns regarding the availability of Child Care funds for Food Stamp E&T participants. Regarding the ability to reassign a portion of the Food Stamp E&T allocation to the Food Stamp E&T Child Care allocation, the General Appropriations Act set the amount of child care funds for Food Stamp E&T participants at $200,000 for the state. The Commission recognizes that expansion of these services statewide could also produce growth in the need for child care services among the general Food Stamp population that has work requirements, and would accept requests from the Boards to increase the Food Stamp E&T Child Care allocation as funds are needed . Such a request might be fulfilled through the deobligation and reallocation process, before consideration is given to a transfer of additional funds into the Food Stamp E&T Child Care strategy. The Commission would also note that the work requirement only applies to Food Stamp recipients with children age 6 or older. Boards may be able to minimize the need for child care in this group by offering Food Stamp E&T component activities during school hours. The Commission will continue to analyze the Boards' expenditure patterns for Food Stamp E&T Child Care funds as the expansion to statewide coverage of the E&T program transpires.

After considering the comments and responses, the Commission does not see a need for the changes to the rules as proposed.

For information about the Commission please visit our web page at www.texasworkforce.org.

Subchapter A. GENERAL PROVISIONS

40 TAC §813.1, §813.2

The rules are repealed 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 Commission activities and services.

Texas Labor Code, Title 4 and particularly Chapter 301 and Chapter 302 will be affected by the repeals.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 14, 2001.

TRD-200104693

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: September 3, 2001

Proposal publication date: June 29, 2001

For further information, please call: (512) 463-2573


40 TAC §§813.1 - 813.3

The new rules are adopted 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 Commission services and activities.

Texas Labor Code, Title 4 and particularly Chapter 301 and Chapter 302 will be affected by the new rules.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 14, 2001.

TRD-200104695

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: September 3, 2001

Proposal publication date: June 29, 2001

For further information, please call: (512) 463-2573


Subchapter B. EXPENDITURE OF FUNDS

40 TAC §§813.11 - 813.14

The rules are repealed 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 Commission activities and services.

Texas Labor Code, Title 4 and particularly Chapter 301 and Chapter 302 will be affected by the repeals.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 14, 2001.

TRD-200104694

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: September 3, 2001

Proposal publication date: June 29, 2001

For further information, please call: (512) 463-2573


Subchapter B. ACCESS TO EMPLOYMENT AND TRAINING ACTIVITIES AND SUPPORT SERVICES

40 TAC §813.11, §813.12

The new rules are adopted 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 Commission services and activities.

Texas Labor Code, Title 4 and particularly Chapter 301 and Chapter 302 will be affected by the new rules.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 14, 2001.

TRD-200104696

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: September 3, 2001

Proposal publication date: June 29, 2001

For further information, please call: (512) 463-2573


Subchapter C. ALLOWABLE ACTIVITIES FOR PARTICIPANTS

40 TAC §§813.21 - 813.23

The rules are repealed 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 Commission services and activities.

Texas Labor Code, Title 4 and particularly Chapter 301 and Chapter 302 will be affected by the repeals.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 14, 2001.

TRD-200104698

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: September 3, 2001

Proposal publication date: June 29, 2001

For further information, please call: (512) 463-2573


Subchapter C. EXPENDITURE OF FUNDS

40 TAC §813.22

The new rule is adopted 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 Commission services and activities.

Texas Labor Code, Title 4 and particularly Chapter 301 and Chapter 302 will be affected by the new rule.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 14, 2001.

TRD-200104697

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: September 3, 2001

Proposal publication date: June 29, 2001

For further information, please call: (512) 463-2573


Subchapter D. SUPPORT SERVICES FOR PARTICIPANTS

40 TAC §§813.31 - 813.33

The rules are repealed 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 Commission services and activities.

Texas Labor Code, Title 4 and particularly Chapter 301 and Chapter 302 will be affected by the repeals.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 14, 2001.

TRD-200104702

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: September 3, 2001

Proposal publication date: June 29, 2001

For further information, please call: (512) 463-2573


Subchapter D. ALLOWABLE ACTIVITIES

40 TAC §813.31, §813.32

The new rules are adopted 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 Commission services and activities.

Texas Labor Code, Title 4 and particularly Chapter 301 and Chapter 302 will be affected by the new rules.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 14, 2001.

TRD-200104701

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: September 3, 2001

Proposal publication date: June 29, 2001

For further information, please call: (512) 463-2573


Subchapter E. COMPLAINTS AND APPEALS

40 TAC §§813.41 - 813.43

The rules are repealed 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 Commission services and activities.

Texas Labor Code, Title 4 and particularly Chapter 301 and Chapter 302 will be affected by the repeals.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 14, 2001.

TRD-200104699

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: September 3, 2001

Proposal publication date: June 29, 2001

For further information, please call: (512) 463-2573


Subchapter E. SUPPORT SERVICES FOR PARTICIPANTS

40 TAC §813.41

The new rule is adopted 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 Commission services and activities.

Texas Labor Code, Title 4 and particularly Chapter 301 and Chapter 302 will be affected by the new rule.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 14, 2001.

TRD-200104700

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: September 3, 2001

Proposal publication date: June 29, 2001

For further information, please call: (512) 463-2573


Subchapter F. COMPLAINTS AND APPEALS

40 TAC §§813.51 - 813.53

The new rules are adopted 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 Commission services and activities.

Texas Labor Code, Title 4 and particularly Chapter 301 and Chapter 302 will be affected by the new rules.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on August 14, 2001.

TRD-200104703

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: September 3, 2001

Proposal publication date: June 29, 2001

For further information, please call: (512) 463-2573