TITLE 25.HEALTH SERVICES

Part 1. TEXAS DEPARTMENT OF HEALTH

Chapter 14. COUNTY INDIGENT HEALTH CARE PROGRAM

The Texas Department of Health (department) adopts the amendments to §§14.1, 14.2, 14.104, and 14.203 concerning the County Indigent Health Care Program. Section 14.1 is adopted with changes to the proposed text as published in the December 1, 2000, issue of the Texas Register (25 TexReg 11861). Sections 14.2, 14.104, and 14.203 are adopted without changes, and therefore the sections will not be republished.

The amendments comply with Health and Safety Code Chapter 61, which requires that the standards and procedures used to determine eligibility must be consistent with the Temporary Assistance to Needy Families (TANF) and Medicaid standards and procedures.

The proposed amendment to §14.1 allows the department to prevent payments for services that were not paid by the county within 95 calendar days from the county's receipt of the bill, to withhold state assistance funds to counties if serious deficiencies that cannot be corrected are identified, and to routinely audit a county receiving state assistance funds. The appeals conducted by the Office of General Counsel for audit disputes are deleted so that the program and the deputyship can handle these disputes. The signature of the county judge and the additional wording on the State of Texas purchase voucher that the payee agrees to repay any funds paid in error are proposed for counties receiving state assistance funds.

The proposed amendments to §14.2 delete the appeals conducted by the Office of General Counsel on eligibility dispute resolutions to leave the responsibility for program policy within the deputyship.

Section 14.104 proposes amendments to increase the maximum income limit deduction for the sponsor's family to be consistent with the Temporary Assistance to Needy Families (TANF) program as required by the Health and Safety Code, Chapter 61.

Section 14.203 allows counties to choose how to pay inpatient hospital services at the beginning of the calendar year rather than the state fiscal year to simplify county administration.

No public comments were received regarding the proposal. A public hearing on the amendments was held at 10:00 a.m. on December 15, 2000, in the Public Hearing Room, Texas Department of Health, 12555 Riata Vista Circle, Austin, Texas, to accept comments on the proposed repeals and amendments; but no persons who wished to comment were present.

Due to a staff comment, a change was made to §14.1(i)(2)(B). In the second sentence, a period was added and a comma was deleted to state "...acknowledges the state's authority to collect any funds paid in error."..." instead of "...acknowledges the state's authority to collect any funds paid in error,"...".

Subchapter A. COUNTY PROGRAM ADMINISTRATION

25 TAC §14.1, §14.2

The amendments are adopted under Health and Safety Code Chapter 61 and Human Resources Code Chapters 22 and 32. The department has rule making authority for the County Indigent Health Care Program under Health and Safety Code Chapter 61.

§14.1.County Program Administration.

(a)

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

(1)

A county refers to:

(A)

a county not fully served by a public hospital or a hospital district; or

(B)

a county that provides indigent health care services to its eligible residents through a hospital established by a board of managers jointly appointed by a county and a municipality.

(2)

Day on which county expends funds--The county expends funds on the day the county writes a check paying for a bill.

(3)

Days--Calendar days.

(4)

Eligibility staff--Individuals who determine program eligibility. These individuals may be county officials, county personnel, or persons determining program eligibility under contract with the county. If the term "staff" is used alone, it has the same meaning.

(5)

General revenue tax levy (GRTL)--The county's annual general revenue tax levy. The GRTL includes all county property taxes and sales and use tax revenue that the county expects to receive in the calendar year in which the state fiscal year begins. Sales and use tax revenue is collected under the County Sales and Use Tax Act in compliance with the Tax Code, §26.042(c). The GRTL excludes the $.30 county tax for farm-to-market roads or flood control (lateral road fund) and the $.15 county tax for maintenance of public roads (special road and bridge fund). The GRTL used to establish the county's 8.0% limit for the County Indigent Health Care Program in the coming state fiscal year is the county's adjusted GRTL as of July 31 of the current year minus the amount of revenue dedicated for program services in the previous year. In counties partially served by a hospital district, the counties' 8.0% limit is based on the GRTL for the property outside the area served by the hospital district.

(6)

Public facility--A public hospital or a hospital district owned, operated, or leased by a hospital district.

(7)

Public hospital--A hospital owned, operated, or leased by a county, city, town, hospital authority, or other political subdivision of the state, excluding a hospital district and hospital authority. A hospital is not considered to be a public hospital for the purposes of providing indigent care if the hospital:

(A)

is owned, operated, or leased by a city with a population of less than 5,500, according to the most recent federal decennial census;

(B)

was leased before January 1, 1981, by a city that at the time of the lease did not have a legal obligation to provide indigent care;

(C)

was established under Texas Civil Statutes, Article 4494i-1; or

(D)

was leased to a nongovernmental person or entity at the time of sale and was sold on or after January 1, 1988, to a nongovernmental purchaser.

(8)

State fiscal year--The 12-month period beginning September 1 of each calendar year and ending August 31 of the following calendar year.

(b)

County responsibility for an indigent health care program. Each county without a public facility legally obligated to serve the entire county must administer a county indigent health care program that serves all or that portion of the county not served by a public facility. The county's program must provide basic health care services to eligible county residents who do not live in a county area served by a public facility. A county that adopts a property tax rate exceeding 8.0% (as calculated under the Tax Code, §26.04) and designates a portion of that tax rate for basic health care services must spend the revenues produced by that portion of the designated rate for basic health care services only. If a county owns a public hospital, and the county sells or leases the hospital to another party, the terms of the sale or lease agreement determine the type and level of county responsibility. If the sale or lease represents the county's attempt to totally divest itself of the public hospital or reduce the level of services provided by the hospital, the Indigent Health Care and Treatment Act, Subtitles D and E, apply.

(c)

General administrative requirements. Each county required to administer a program must:

(1)

provide public notice and make a reasonable effort to notify the public, at the beginning of the state's fiscal year, of the county's eligibility standards, and the county's application, documentation, and verification procedures and the verification and documentation procedures that applicants must comply with to establish eligibility;

(2)

establish an application procedure;

(3)

furnish each applicant with a written application form;

(4)

assist applicants in completing the application form and the application process, and inform applicants that this assistance is available;

(5)

require applicants to sign a written statement swearing to the truth of the information they supply;

(6)

determine eligibility within 14 days after the date a completed application is received;

(7)

provide applicants with a written notice of the eligibility decision. Each county must include on its notice to denied applicants the reason for denial and an explanation of the county's appeal process;

(8)

inform approved households that they must report any changes in income and resources within 14 days after the date the change occurs;

(9)

review the eligibility of each household at least once every six months;

(10)

develop a process for reviewing denied cases and for hearing appeals requested by households that are denied assistance;

(11)

maintain a case record for each eligible and denied applicant. Case records for denied applicants must be maintained for a minimum of three state fiscal years after the relevant state fiscal year;

(12)

allow denied applicants to resubmit an application whenever circumstances justify an eligibility redetermination.

(13)

All counties required to provide indigent health care shall submit annual financial reports to the department. A county satisfies the annual reporting requirements if the county submits information to the department as required by law to obtain an annual distribution under the Agreement Regarding Disposition of Settlement Proceeds filed on July 24, 1998, in the United States District Court, Eastern District of Texas, in the case styled The State of Texas v. The American Tobacco Co., et al., No. 5-96CV-91.

(d)

County administrative option.

(1)

Counties may administer or may contract with others to administer a program that uses:

(A)

the eligibility policies; the application, documentation, and verification procedures; and the service definitions contained in this chapter; or

(B)

county-developed standards and procedures that are less restrictive than those contained in this chapter.

(2)

Counties may change eligibility standards to make them more or less restrictive than their preceding standards. However, the new standards can be no more restrictive than those contained in Subchapter B of this chapter (relating to Determining Eligibility).

(3)

If a city in the county with a population below 15,000 according to the last federal census owns, operates, or leases a public hospital, the city and county may enter into an agreement transferring part of the public hospital's indigent health care responsibility to the county. The transfer agreement is irrevocable and cannot be amended unless a hospital district is created after the effective date of the agreement and the boundaries of the district cover all or part of the county. It must:

(A)

specify that the county is assuming the hospital's responsibility for paying other providers for services delivered to eligible city residents on an emergency basis or because the service is unavailable at the hospital;

(B)

require that the city public hospital continues to otherwise provide health care services to eligible city residents as required by law;

(C)

occur by August 31, 1989, by adoption of an ordinance, resolution, or order by the commissioners' court and city governing body; and

(D)

take effect on a September 1, within two years after the date of the agreement.

(4)

The county and city must establish coordinated application and eligibility verification procedures that comply with subsection (c) of this section and the Indigent Health Care and Treatment Act, §10.03. These procedures must ensure the efficient and timely referral of the eligible city residents to the proper city or county entity. County expenditures for services made under the terms of the agreement are creditable towards the county's 8.0% limit if the city resident otherwise meets the eligibility standards contained in Chapter 4 of this title (relating to Determining Eligibility). County expenditures for coordinating application and verification procedures cannot be credited towards the county's 8.0% limit. Within 30 days after the agreement is made, the city and county must notify the department of the agreement and its effective date and send the department a copy of all ordinances, resolutions, or other orders pertaining to the County Indigent Health Care Program agreement.

(5)

Upon county request, the Texas Medicaid or Vendor Drug Program will reimburse the counties for basic services provided to otherwise eligible county residents appealing a social security disability determination denial and who are later determined to be retroactively SSI/Medicaid-eligible. County eligibility for reimbursement is subject to §14.204(h) and (i) of this title (relating to Services and Payment Liability, Limitations, and Options). Reimbursement is available only for services covered by the Texas Medicaid or Vendor Drug Program.

(e)

State assistance fund.

(1)

The Texas Department of Health (department) is responsible for distributing state assistance to eligible counties to the extent appropriated state funds are available.

(2)

A county is eligible for the state assistance fund only if the county:

(A)

complied with the eligibility policies and the application, documentation, and verification procedures contained in this chapter; and

(B)

expended 8.0% of the applicable GRTL in the state fiscal year for the provision of basic and department approved optional health care services to eligible county residents;

(C)

the department may waive the requirement that the county meet the minimum expenditure level and provide state assistance at a lower level determined by the department. The county must submit the waiver request to the department prior to the beginning of the state fiscal year for which the waiver is being requested. The department must make a determination on the request not later than 90 days after the department's receipt of the request and shall notify the county of their determination. The county must demonstrate on their waiver request, through an appropriate actuarial analysis, that the county is unable to satisfy the 8.0% GRTL level based on the following:

(i)

although the county's GRTL has increased significantly, expenditures for health care services have not increased by the same percentage; or

(ii)

the county is at the maximum allowable ad valorem tax rate, has a small population, or has insufficient taxable property.

(3)

Counties may not credit expenditures towards eligibility for state assistance if the expenditures are for a resident eligible under less restrictive eligibility standards but ineligible under the department eligibility standards, except for net income standards up to 50% of the Federal Poverty Income Limits (FPIL). A county that provides indigent health care services to its eligible residents through a hospital established by a board of managers jointly appointed by a county and a municipality may use less restrictive eligibility and resource standards and may credit expenditures towards eligibility for state assistance. If a county has a contract with a state agency to provide basic services to eligible county residents in a hospital maintained or operated by the state agency, the county may credit all expenditures for a county resident eligible under the department or less restrictive county standards.

(4)

The department distributes funds to eligible counties based on a maximum annual allocation for each county potentially eligible for state assistance, subject to funding. The maximum annual allocation for each county will be based on such factors as spending history, population, and the number of residents living below the Federal Poverty Income Limit. The maximum annual allocation will be recomputed at least every six months. The minimum annual allocation, subject to funding, will be no less than the average of what a county would have received in state fiscal years 1997, 1998, and 1999 at the 8.0% GRTL threshold with a 90% state match. At the end of the state fiscal year the department may reallocate the distribution of money to eligible counties.

(f)

Eligibility requirements for counties applying for state assistance.

(1)

Each county that plans to credit expenditures towards eligibility for the state assistance fund must:

(A)

comply with the eligibility standards and the application, documentation, and verification procedures contained in this chapter. County use of the department application for assistance form, the eligibility worksheet, and the monthly financial/activity report is also required. County use of other department forms is not required if the county substitutes a similar form with the same content as the department form;

(B)

notify the department by telephone as soon as possible before the dates on which the county anticipates it will expend both 6.0% and 8.0% of its GRTL. The telephone calls reporting these expenditure levels must occur no later than the date on which the county reaches these expenditure levels;

(C)

notify the department in writing within seven days after the county telephones the department to report that the county has reached the 6.0% expenditure level. The county must also notify the department and the county's mandated providers in writing within seven days after the county telephones the department to report that the county has reached the 8.0% expenditure level;

(D)

use adequate, auditable accounting records and procedures that establish a clear, accurate audit trail for each expenditure;

(E)

complete and submit reports prescribed by the department to the department within 10 days after the end of each month. All counties that are eligible to receive state assistance must submit monthly financial reports covering the 12-month period preceding the date on which state assistance is sought.

(F)

complete and submit a State of Texas purchase voucher to the department to claim state matching funds;

(G)

maintain a case record for each eligible and denied resident;

(H)

cooperate fully with the department by providing any and all information requested by the department in an audit of county records or a review of county eligibility for state assistance;

(I)

maintain all records and vouchers for three state fiscal years after the relevant state fiscal year; and

(J)

report the county's GRTL, as shown in county records on July 31 of each year, to the State Property Tax Board no later than October 1 of the same year. If part of the county is served by a hospital district, request the county appraisal district to determine the GRTL of county propertylocated outside the area served by a hospital district.

(2)

Counties may not credit payments for the following towards eligibility for state assistance:

(A)

ineligible individuals;

(B)

non-basic or department non-approved optional services;

(C)

amounts for basic or department approved optional services that exceed the payment rates established by the department;

(D)

basic or department approved optional services if:

(i)

a physician provides the service and does not certify in writing that the service was medically necessary; or

(ii)

a nonphysician provides the service and does not certify in writing that the service was ordered by a physician;

(E)

county program administrative expenses;

(F)

services that were not paid by the county within 95 calendar days from the county's receipt of the bill. For SSI applicants, the date of receipt is the day the applicant is determined CIHCP eligible because their SSI application has been denied by the Social Security Administration.

(3)

Counties may also credit toward eligibility for state assistance the value of health care services credited or paid in a state fiscal year and provided to county residents eligible under the eligibility and payment standards established by the department in Subchapters B, C, and D of this chapter (relating to Determining Eligibility, Providing Services, and Care Management) under the following types of contracts:

(A)

a health care provider and a county entered into a contract, on or before January 1, 1985, require that the provider furnish a certain level of mandatory health care services to eligible county residents; or

(B)

the terms of a sales contract between a county and a purchaser of the county's hospital require the purchaser to provide inpatient and outpatient hospital services. The sale must have occurred on or after January 1, 1988, and the hospital must have been:

(i)

leased to a nongovernmental person or entity at the time of sale; and

(ii)

purchased by a nongovernmental person or entity.

(g)

Determining county eligibility for state assistance.

(1)

Within 30 days from the date the department receives written notification that the county expended 6.0% of its GRTL for basic and department approved optional services for eligible residents, the department must:

(A)

complete a review of the county's eligibility system;

(B)

provide the county with a report of the findings of the review; and

(C)

provide information relevant to a department audit of the country's financial accounting system.

(2)

If the eligibility systems review does not identify any deficiencies in the county's eligibility system, the county is eligible for state assistance when it reaches the 8.0% expenditure level. If deficiencies are identified, the county must correct the deficiencies within five workdays of written notice before claiming state assistance funds. If serious deficiencies that cannot be corrected are identified, the county is not eligible for state assistance funds. Serious deficiencies are consistent misapplication of policy as stated in these rules and the County Indigent Health Care Handbook.

(h)

The department state-assistance-fund audits.

(1)

The department may routinely audit a county that receives state assistance funds.

(2)

A county may request an administrative review of the department audit report if the county disagrees with the report findings. The county requests an administrative review by sending written notice, an explanation of the county's reason for disagreement, and all relevant information to the department Indigent Health Care Policy Section. The county's written request must be postmarked within 30 days from the date of the county's audit exit conference.

(3)

If the policy section does not receive a written request for administrative review as stipulated in paragraph (2) of this subsection, the findings of the department audit report are final.

(4)

The policy section must determine the accuracy of the department audit report and notify the county of its decision by letter postmarked within 30 days from the date the department received the county's audit.

(i)

The department administration of state assistance funds. The following procedures are established to assist the department in its administration of state assistance funds and to assist counties in the management of their programs.

(1)

After a county reaches the 6.0% GRTL expenditure level, the county must contact the department by telephone immediately before any commissioners court meets to authorize program expenditures; the county must report the amount of expenditures the court will be asked to authorize and the amount of any other unpaid bills for services.

(2)

After a county reaches the 8.0% expenditure level, the county must contact the department by telephone to encumber available state assistance funds to match expenditures that the commissioners court will be asked to authorize.

(A)

The department provides the county with an approval code number for the state-assistance-encumbered funds.

(B)

The county must complete the State of Texas purchase voucher form, enter "For reimbursement from the state assistance fund provided under the County Indigent Health Care Program (the Health and Safety Code, Chapter 61). The payee agrees to repay any funds paid in error and acknowledges the state's authority to collect any funds paid in error." and the approval code number for the encumbered funds on the voucher, and submit the voucher to the department within 30 days after the commissioner's court authorizes the expenditures. The county judge must sign and date the purchase voucher and enter his or her telephone number. If the county does not submit the purchase voucher within the 30-day period, the encumbered state assistance funds become unencumbered.

(3)

The department prepares a weekly report on the status of the state assistance fund after 50% of the fund is expended, and the department sends the report to counties that reported reaching the 6.0% expenditure level.

(4)

The department cannot ensure that a county will expend only the amount it is legally obligated to spend on its program unless the county complies with the requirements contained in this section.

(5)

If a county underclaims state assistance funds for a state fiscal year, and state assistance funds for that fiscal year are expended, the department cannot match the underclaimed county expenditures.

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 February 23, 2001.

TRD-200101124

Susan K. Steeg

General Counsel

Texas Department of Health

Effective date: March 15, 2001

Proposal publication date: December 1, 2000

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


Subchapter B. DETERMINING ELIGIBILITY

25 TAC §14.104

The amendment is adopted under Health and Safety Code Chapter 61 and Human Resources Code Chapters 22 and 32. The department has rule making authority for the County Indigent Health Care Program under Health and Safety Code Chapter 61.

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 February 23, 2001.

TRD-200101125

Susan K. Steeg

General Counsel

Texas Department of Health

Effective date: March 15, 2001

Proposal publication date: December 1, 2000

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


Subchapter C. PROVIDING SERVICES

25 TAC §14.203

The amendment is adopted under Health and Safety Code Chapter 61 and Human Resources Code Chapters 22 and 32. The department has rule making authority for the County Indigent Health Care Program under Health and Safety Code Chapter 61.

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 February 23, 2001.

TRD-200101126

Susan K. Steeg

General Counsel

Texas Department of Health

Effective date: March 15, 2001

Proposal publication date: December 1, 2000

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


Chapter 229. FOOD AND DRUG

Subchapter I. SANITATION IN PECAN SHELLING PLANTS

25 TAC §§229.131 - 229.134

The Texas Department of Health (department) adopts the repeal of §§229.131-229.134, concerning sanitation in pecan shelling plants. The repealed sections are adopted without changes to the proposed repeal as published in the December 1, 2000 issue of the Texas Register (25 TexReg 11871) and therefore will not be republished.

The repeal of these rules is necessary because the rules contain language that is obsolete. Also, language in the repeal of §229.134(b) and (c) was added as an amendment to the Current Good Manufacturing Practice and Good Warehousing Practice in the Manufacturing, Packing, or Holding Human Food, Chapter 229, Food and Drug, §229.219 of this title.

Pursuant to the Government Code, §2001.039, each state agency is required to review and consider for readoption each rule adopted by that agency. The sections have been reviewed and the department has determined that reasons for adopting the sections no longer exist.

The department published a Notice of Intention to Review for §§229.131-229.134 as required by Government Code, §2001.039 in the Texas Register on April 7, 2000 (25 TexReg 3062). No comments were received as a result of this publication.

No comments were received on the proposed repeal during the comment period.

The repeals are adopted under Health and Safety Code, §431.241, which provides the department with the authority to adopt necessary regulations pursuant to the enforcement of Chapter 431; and §12.001, which provides the Texas Board of Health (board) with the authority to adopt rules for the performance of every duty imposed by law on the board, the department, and the commissioner of health.

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 February 23, 2001.

TRD-200101143

Susan K. Steeg

General Counsel

Texas Department of Health

Effective date: March 15, 2001

Proposal publication date: December 1, 2000

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


Chapter 229. FOOD AND DRUG

The Texas Department of Health (department) adopts the repeal of existing §§229.301 - 229.304 and new §§229.301 - 229.306, concerning the issuance of certificates of free sale and sanitation and/or certificates of origin. The repealed sections and new §§229.301 - 229.306 are adopted without changes to the proposed text as published in the December 1, 2000 issue of the Texas Register (25 TexReg 11873), and therefore will not be republished.

New §§229.301 - 229.306 cover the purpose, definitions, minimum requirements, application for certificate, time frames and fees. Certificates are issued to manufacturers and distributors for the purpose of importing products from the United States into other countries. These rules set forth the process for obtaining a certificate and clarify the products that the department can certify.

Government Code §2001.039 requires each state agency to review and consider for readoption each rule adopted by that agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure Act). Sections 229.301 - 229.304 have been reviewed and the department has determined that reasons for adopting the sections continue to exist in that rules are needed on this subject; however, the rules need revision as described in this preamble.

The department published a Notice of Intention to Review these sections in the December 31, 1999, issue of the Texas Register (24 TexReg 12082). No comments were received as a result of the publication of the notice.

The department received no comments on the proposed repeal and new rules during the public comment period.

Subchapter R. ISSUANCE OF CERTIFICATES OF FREE SALE AND CERTIFICATES OF ORIGIN

25 TAC §§229.301 - 229.304

The repeals are adopted under the Health and Safety Code, Chapter 431 (Food, Drug, Service and Cosmetic Act); and Health and Safety Code, §12.001, which provides the Texas Board of Health (board) with the authority to adopt rules for its procedures and performance of each duty imposed by law on the board, the department and the commissioner of health.

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 February 23, 2001.

TRD-200101129

Susan K. Steeg

General Counsel

Texas Department of Health

Effective date: March 15, 2001

Proposal publication date: December 1, 2000

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


Subchapter R. ISSUANCE OF CERTIFICATES OF FREE SALE AND SANITATION AND/OR CERTIFICATES OF ORIGIN

25 TAC §§229.301 - 229.306

The new rules are adopted under the Health and Safety Code, Chapter 431 (Food, Drug, Service and Cosmetic Act); and Health and Safety Code, §12.001, which provides the Texas Board of Health (board) with the authority to adopt rules for its procedures and performance of each duty imposed by law on the board, the department and the commissioner of health.

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 February 23, 2001.

TRD-200101130

Susan K. Steeg

General Counsel

Texas Department of Health

Effective date: March 15, 2001

Proposal publication date: December 1, 2000

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