TITLE 40.SOCIAL SERVICES AND ASSISTANCE

Part 1. TEXAS DEPARTMENT OF HUMAN SERVICES

Chapter 3. TEXAS WORKS

Subchapter K. EMPLOYMENT SERVICES

40 TAC §3.1101

The Texas Department of Human Services (DHS) proposes to amend §3.1101, in its Texas Works chapter, concerning who is required to participate in the Choices program. The purpose of the amendment is to retain employment exemptions in the Temporary Assistance for Needy Families (TANF) program after the Achieving Change for Texas (ACT) waiver expires on March 31, 2002. DHS wishes to retain exemptions for individuals with barriers to participation that would be difficult to overcome, are of a long-term nature, or would require support services that may not be readily available in their local area. The amendment proposes to delete language pertaining to State Welfare Reform Control Group language, to delete language pertaining to ACT wavier language, and to delete subsections (b)(1) and (b)(2) of the section. The amendment extends the disability period from 90 to 180 days for caretakers or disabled second parents and adds a new exemption for a single grandparent, age 50 or over, who is a caretaker of children under three years of age.

James R. Hine, Commissioner, has determined that for the first five-year period the proposed section will be in effect there will be fiscal implications for state government as a result of enforcing or administering the section.

The effect on state government for the first five-year period the section will be in effect is an estimated additional cost of $25,838 in fiscal year (FY) 2002; $0 in FY 2003; $0 in FY 2004; $0 in FY 2005; and $0 in FY 2006.

Mr. Hine also has determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of adoption of the proposed amendment will be to exempt from work requirements TANF recipients with barriers to participation that would be difficult to overcome, are of a long-term nature, or would require support services that may not be readily available in their local area. The amendment allows concentration of effort and resources on TANF recipients who are likely to achieve successful outcomes as a result of their participation in work activities. Exempt TANF recipients may continue to volunteer for Choices. There will be no effect on small or micro businesses as a result of enforcing or administering the section, because the amendment does not affect the operation of businesses. There is no anticipated economic cost to persons who are required to comply with the proposed amendment. There will be no anticipated effect on local employment in geographic areas affected by this section.

Questions about the content of this proposal may be directed to Eric McDaniel at (512) 438- 2909 in DHS's Texas Works Policy section. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-101, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

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

The amendment is proposed under the Human Resources Code, Title 2, Chapter 31, which authorizes the department to administer financial assistance programs.

The amendment implements the Human Resources Code, §§31.001-31.0325.

§3.1101.Who is Required to Participate.

(a) Each certified Temporary Assistance for Needy Families (TANF) recipient [ age 16-59 ] who lives in a [ full or mid-level ] Choices county [ that is identified in the Choices State Plan ] must participate in any Choices component required by the Texas Workforce Commission (TWC) , [ unless the client is exempt or has good cause as specified in the state's federal Achieving Change for Texas (ACT) waiver ] except as noted in subsection (b)[ (1) and (2) ] of this section.

(b) The Texas Department of Human Services (DHS) exempts from Choices participation: [ a parent or other relative of a child under age three as specified in the expired 45 Code of Federal Regulations §250.30(b)(9) except as noted in paragraphs (1) and (2)of this subsection. ]

(1) caretaker relative of a child as specified in Human Resources Code, §31.012 (relating to mandatory work or participation in employment activities through the job opportunities and basic skills program); [ For recipients designated by DHS as members of the State Welfare Reform Group described in §3.6004(a) of this title (relating to Applicability of Temporary Assistance for Needy Families (TANF) Policies Resulting from Human Resources Code §31.0031, Dependent Child's Income; Human Resources Code §31.012, Mandatory Work or Participation in Employment Activities Through the Choices Training Program; and Human Resources Code §31.032, Investigation and Determination of Eligibility), DHS exempts a caretaker relative of a child as specified in Human Resources Code §31.012. ]

(2) caretaker or second parent who is needed in the home to care for a disabled adult in the household; [ There is no exemption for working 30 or more hours a week. ]

(3) single grandparent age 50 or over who is a caretaker for a child under age three;

(4) caretaker or second parent who is disabled for more than 180 days;

(5) pregnant caretaker or second parent who is unable to work as a result of pregnancy;

(6) caretaker or second parent who is age 60 or older;

(7) recipient under age 16 who is not a caretaker or second parent; and

(8) recipient age who is16 through 18 years old attending elementary, secondary, vocational, or technical school full-time; and who is not a caretaker or second parent.

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

Filed with the Office of the Secretary of State on February 1, 2002.

TRD-200200655

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: March 17, 2002

For further information, please call: (512) 438-3734


Subchapter I. INCOME

40 TAC §3.902

The Texas Department of Human Services (DHS) proposes to amend §3.902, concerning types of income, in its Texas Works chapter. The purpose of the amendment is to update the citation regarding alien sponsor's income and to clarify food stamp inclusions.

James R. Hine, Commissioner, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section.

Mr. Hine also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of adoption of the proposed rule will be access to correct information regarding deeming of alien sponsor's income under federal regulations. There will be no adverse economic effect on small or micro businesses, because the amendment updates and clarifies policy and does not affect businesses. There is no anticipated economic cost to persons who are required to comply with the proposed section. There will be no anticipated effect on local employment in geographic areas affected by this section.

Questions about the content of this proposal may be directed to Eric McDaniel at (512) 438-2909 in DHS's Texas Works Program. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-069, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

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

The amendment is proposed under the Human Resources Code, Title 2, Chapter 31, which authorizes the department to administer financial assistance programs, and Chapter 33, which authorizes the department to administer the food stamp program.

The amendment implements the Human Resources Code, §§31.001 - 31.076 and §§33.001 - 33.027.

§3.902.Types of Income.

(a) Temporary Assistance for Needy Families (TANF). The Texas Department of Human Services (DHS) counts the following as income:

(1) Alien sponsor's income. DHS counts all the sponsor's [ (and spouse's) ] gross countable income as available to the alien's household according to subsection (c) of this section [ 45 Code of Federal Regulations §233.51 ].

(2) - (28) (No change.)

(b) (No change.)

(c) Food stamps inclusions. DHS counts as income the types of income stipulated in the Food Stamp Act of 1977 as amended by Title VIII, of Public Law 104-193, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, except as specified in subsection (d) of this section. This includes the deeming of an alien sponsor's income pursuant to 7 CFR 273.4(c).

(d) (No change.)

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

Filed with the Office of the Secretary of State on January 30, 2002.

TRD-200200585

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: March 17, 2002

For further information, please call: (512) 438-3734


Chapter 12. SPECIAL NUTRITION PROGRAMS

Subchapter A. CHILD AND ADULT CARE FOOD PROGRAM

40 TAC §§12.3, 12.4, 12.24 - 12.26

The Texas Department of Human Services (DHS) proposes to amend §12.3, concerning eligibility of contractors, facilities, and food service management companies, §12.4, concerning day home facilities, §12.24, concerning sanctions and penalties, §12.25, concerning denials and terminations, and §12.26, concerning appeals, in its Special Nutrition Programs chapter. The purpose of the amendments is to comply with amendments made by the Agricultural Risk Protection Act of 2000, also known as Public Law 106-224, to the Richard B. Russell National School Lunch Act.

The Agricultural Risk Protection Act of 2000 amended a number of provisions in the Richard B. Russell National School Lunch Act, including a requirement affecting the termination process for institutions participating in the Child and Adult Care Food Program (CACFP) and their day care home providers. According to the Act, a state agency administering the CACFP must now include the following information in its written notice of intent to terminate the participation of a contractor. If the contractor requests an appeal within the specified time, the contractor may continue to participate in the CACFP through the completion of the appeal process and receive reimbursement during this time for eligible meals provided to eligible participants and for eligible administrative costs. If the state agency's action is upheld by the hearings officer, the contractor's agreement will be terminated effective on the date the appeal findings are issued. Agreements of contractors who choose not to request an appeal or fail to do so within the specified time frame will be terminated according to the date provided in the written notice of intent to terminate. If a state agency takes action to terminate the participation of a contractor based on imminent dangers to the health or welfare of participants, that contractor is terminated immediately and will not be reimbursed for any services provided during the appeal process.

The Act also requires contractors who sponsor the program participation of day care home providers to notify seriously deficient providers, in writing, that they have been determined to be seriously deficient and that failure to correct the serious deficiency will result in the termination of the provider's agreement and placement on United States Department of Agriculture's National Disqualified List (NDL). The notice must specify the serious deficiency upon which the action is based, the actions the provider must take to correct the serious deficiency, and the period of time allowed to correct the deficiency. If the sponsor determines the provider has not taken corrective action to fully and permanently correct the serious deficiency within the specified time, the sponsor must provide written notice of their intent to terminate the provider's agreement "for cause." This notice must inform the provider that they may appeal the decision to terminate their agreement for cause and include the procedures the provider must follow to appeal the sponsor's action. The notice must also inform the provider that they may continue to participate in the CACFP and be reimbursed for eligible meals served until the appeal is completed, and that providers terminated for cause will be placed on the NDL. If a sponsor takes action to terminate the participation of a provider based on imminent dangers to the health or welfare of participants, that provider is terminated immediately and will not be reimbursed for any services provided during the appeal process.

James R. Hine, Commissioner, has determined that for the first five-year period the sections are in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the sections.

Mr. Hine also has determined that for each year of the first five years the sections are in effect, the public benefit anticipated as a result of adoption of the proposed rule will be improved administration of the CACFP pertaining to the rights of contractors and facilities subject to termination. There will be no adverse economic effect on small or micro businesses, because the amendments made administrative procedures less restrictive. There is no anticipated economic cost to persons who are required to comply with the proposed sections. There will be no anticipated effect on local employment in geographic areas affected by these sections.

Questions about the content of this proposal may be directed to Diane Bottoms at (512) 467-5850 in DHS's Special Nutrition program. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-072, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

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

The amendments are proposed under the Human Resources Code, Title 2, Chapters 22 and 33, which authorizes the department to administer public and nutritional assistance programs.

The amendments implement the Human Resources Code, §§22.001-22.030 and §§33.001-33.024.

§12.3.Eligibility of Contractors, Facilities, and Food Service Management Companies.

(a) - (l) (No change.)

(m) Contractors are ineligible for the CACFP if they sponsor the participation of a day care home which, after being afforded due process by the contractor in accordance with §12.26 of this title (relating to Appeals) , has been terminated for cause in accordance with §12.25 of this title (relating to Denials and Terminations) , including but not limited to program abuse, deficient program operation, and fraudulent activities, unless DHS has granted prior approval.

(n) - (u) (No change.)

§12.4.Day Home Facilities.

(a) (No change.)

(b) Day home providers who have been found guilty of committing fraud in the CACFP, including cases in which adjudication is deferred, are ineligible to participate in the CACFP. If a day care home provider participating in the CACFP is determined to have been found guilty of committing fraud in the CACFP, the provider's participation in the program must be terminated in accordance with §12.25 of this title (relating to Denials and Terminations).

(c) - (f) (No change.)

§12.24.Sanctions and Penalties.

(a) -(b) (No change.)

(c) If DHS has evidence that a contractor has submitted false information, DHS will immediately suspend all program payments, including advance payments, until DHS can determine whether the contractor knowingly submitted false information. If DHS determines, after a review of information provided by the contractor or other sources, that the contractor has knowingly submitted false information, DHS will immediately declare the contractor seriously deficient ; [ , ] terminate the contractor's agreement, in whole or in part, in accordance with §12.25 of this title (relating to Denials and Terminations); suspend payment of any unpaid claim for reimbursement ; [ , ] and notify the contractor's eligible providers that they may transfer to another approved sponsor.

(d) If a contractor fails to attend training designated by DHS as mandatory, DHS will require the contractor to take corrective action to comply with program requirements. Failure by the contractor to accomplish the corrective action by the date established by DHS will result in adverse action up to, and including, termination of the contractor's agreement, in whole or in part, in accordance with §12.25 of this title (relating to Denials and Terminations) and recommendation for placement on the United States Department of Agriculture's National Disqualified List [ immediately declare the contractor seriously deficient and terminate the contractor's agreement, in whole or in part. DHS will deny payment of any administrative costs claimed for reimbursement beginning with the first month after the month in which the contractor failed to attend the required training ]. If the contractor is a sponsoring organization, DHS will notify the contractor's eligible providers or centers that they may transfer to another approved sponsor.

(e) DHS imposes sanctions against contractors that sponsor day care homes who fail to comply with program requirements for monitoring, and who fail to train providers when program violations related to monitoring or training of providers identified during an administrative review exceed a tolerance level of one provider or 10% of the providers sampled, whichever amount is greater. DHS imposes sanctions according to the following procedure:

(1) - (2) (No change.)

(3) DHS will conduct a second follow-up review not later than 45 days after notifying the contractor of the findings of the initial follow-up review to determine if the sponsor is in compliance with the requirements in this subsection. DHS will notify the contractor that failure to correct all instances of noncompliance with the requirements in this subsection will result in the termination[ , in whole or in part, ] of the contractor's agreement, in whole or in part, in accordance with §12.25 of this title (relating to Denials and Terminations), declaration that the organization is seriously deficient in its administration of the program, forfeiture of any outstanding claims for reimbursement, release of the contractor's eligible providers to transfer to another approved sponsor, and that individuals responsible for the deficiencies will be debarred.

(f) DHS imposes sanctions against contractors that sponsor day care homes who fail to ensure that claims are submitted only for eligible meals served to eligible children according to the following procedure:

(1) - (2) (No change.)

(3) If more than 10% of the meals sampled for the test month of the follow-up review fail to meet program requirements, DHS will conduct a second follow-up review not later than 45 days after notifying the contractor of the findings of the initial follow-up review to determine if the sponsor is in compliance with requirements for ensuring claims are submitted only for eligible meals served to eligible children. DHS will notify the contractor that failure to correct all instances of noncompliance with requirements for ensuring claims are submitted only for eligible meals served to eligible children will result in the termination[ , in whole or in part, ] of the contractor's agreement, in whole or in part, in accordance with §12.25 of this title (relating to Denials and Terminations), declaration that the organization is seriously deficient in its administration of the program, forfeiture of any outstanding claims for reimbursement, release of the contractor's eligible providers to transfer to another approved sponsor, and that individuals responsible for the deficiencies will be debarred.

(g) DHS imposes sanctions against contractors that sponsor day care homes who fail to disburse program funds to providers in accordance with program requirements when program violations related to the disbursement of program funds to providers identified during an administrative review exceed a tolerance level of one provider or 10% of the providers sampled, whichever amount is greater. DHS imposes sanctions according to the following procedure:

(1) - (2) (No change.)

(3) DHS will conduct a second follow-up review not later than 45 days after notifying the contractor of the findings of the initial follow-up review to determine if the sponsor is in compliance with the requirements identified in subsection (h) of this section. DHS will notify the contractor that failure to correct all instances of noncompliance relating to the disbursement of provider funds will result in the termination[ , in whole or in part, ] of the contractor's agreement, in whole or in part, in accordance with §12.25 of this title (relating to Denials and Terminations), declaration that the organization is seriously deficient in its administration of the program, forfeiture of any outstanding claims for reimbursement, release of the contractor's eligible providers to transfer to another approved sponsor, and that individuals responsible for the deficiencies will be debarred.

(h) - (j) (No change.)

(k) DHS imposes fiscal sanctions specified in this subsection on contractors who are required to obtain an audit in accordance with the Single Audit Act, as amended, and who fail to comply with the requirements of said Act. The contractor has the right to appeal this action as specified in Chapter 79 of this title (relating to Legal Services).

(1) DHS takes fiscal sanctions against a contractor according to the procedures specified in paragraphs (1)-(4) of this subsection.

(A) DHS notifies each contractor upon approval of the application for program participation of the date by which an acceptable audit must be received by DHS, and that failure to comply will result in the termination[ , in whole or in part, ] of the contractor's agreement, in whole or in part, in accordance with §12.25 of this title (relating to Denials and Terminations), and recovery of overpayments as identified through audit findings.

(B) DHS provides the contractor two advance notices reminding the contractor of the specific date that the audit is due.

(i) (No change.)

(ii) DHS issues the second notice by certified and regular mail eight months after the end of the contractor's fiscal year for which the audit is due. DHS notifies the contractor that:

(I) (No change.)

(II) if DHS does not receive the audit on or before the specified due date, DHS will terminate the contractor's agreement, in whole or in part, in accordance with §12.25 of this title (relating to Denials and Terminations) [ effective the first day of the month following the month in which the audit was due ]; and

(III) (No change.)

(C) If DHS does not receive the audit on or before the specified due date, DHS notifies the contractor by certified and regular mail of its intent to terminate the contractor's agreement [ that their agreement was terminated ], in whole or in part, in accordance with §12.25 of this title (relating to Denials and Terminations) [ effective the first day of the month following the month in which the audit was due ].

(2) (No change.)

(3) If a contractor submits an audit which does not meet the requirements of the Single Audit Act, as amended, then DHS notifies the contractor in writing that the audit is unacceptable, how it is unacceptable, and that the contractor has 30 calendar days from the date on the notification to submit an acceptable audit to DHS. If DHS does not receive the required audit by the specified time frame and has not granted an extension of the due date, DHS notifies the contractor by certified and regular mail that:

(A) - (B) (No change.)

(C) if DHS does not receive an acceptable audit by the specified due date, DHS intends to [ will ] terminate their agreement, in whole or in part, in accordance with §12.25 of this title (relating to Denials and Terminations) [ effective the first day of the month following the due date specified in this notification ]; and

(D) (No change.)

(4) If DHS does not receive the required audit by the specified due date and has not granted an extension of the due date, DHS notifies the contractor by certified and regular mail that:

(A) (No change.)

(B) DHS intends to terminate their agreement, in whole or in part, in accordance with §12.25 of this title (relating to Denials and Terminations) [ terminated their agreement, in whole or in part, effective the first day of the month following the specified due date ].

(5) (No change.)

(l) If a sponsoring organization of day homes determines during a monitoring review, or by other means, that a provider has failed to comply with program requirements, the sponsor must execute a corrective action plan to achieve compliance. If a sponsoring organization conducts two or more unannounced monitoring reviews in any 12-month period during which the sponsor cannot confirm that children are enrolled for child care and participating in the program, the sponsor must execute a corrective action plan to ensure they are able to effectively monitor the provider's participation in the program. Exception: A sponsor may suspend [ terminate ] the participation of a day care home provider without a corrective action plan if the safety of the children in care is at risk [ or if the sponsor determines that the program noncompliance is the result of intentional program abuse, deficient program operation, or fraudulent activities ]. The corrective action plan must notify the provider that failure to correct serious deficiencies will result in the termination of the provider's agreement and placement of the provider on USDA's National Disqualified List and specify :

(1) the serious deficiencies;

(2) [ (1) prescribe ] the actions to be taken by the sponsor and the provider to achieve compliance; and

(3) [ (2) include ] the date by which corrective action must be completed.

§12.25.Denials and Terminations.

(a) The Texas Department of Human Services (DHS) denies applications for participation and terminates agreements, in whole or in part, between DHS and contractors for failure to meet basic eligibility requirements, and according to 7 Code of Federal Regulations §§226.6, 226.14-226.16, 226.18, 226.23, 226.25, and 7 Code of Federal Regulations Part 3015, and § [ Section ]17(a)(2)(B) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766) as amended by Public Law 106-224, and §17(d) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766) as amended by Public Law 106- 224 [ the Consolidated Appropriations Act of 2001 ].

(b) DHS notifies contractors of its intent to terminate the contractors' agreement, in whole or in part, subject to the contractors' exercise of their right to appeal in accordance with §12.26 of this title (relating to Appeals).

(c) Contractors must notify day care home providers participating in the Child and Adult Care Food Program (CACFP) of their intent to terminate the day care home's participation in the program subject to the providers' exercise of their right to appeal in accordance with §12.26 of this title (relating to Appeals).

(d) [ (b) ] DHS terminates agreements, in whole or in part, and denies subsequent applications of sponsoring organizations [ organization ] of day care homes that [ who ] fail to submit reports in accordance with §12.9 of this title (relating to Reporting and Record Retention).

(e) [ (c) ] DHS terminates agreements, in whole or in part, and denies applications of contractors who have been determined to be seriously deficient in their administration of the program for failure to comply with program requirements as described in §§12.3, 12.5, 12.6, 12.20, and 12.24 of this title (relating to Eligibility of Contractors , [ and ] Facilities , and Food Service Management Companies; [ , ] Application for Program Benefits -- [ - ]Contractors ; [ , ] Agreement ; [ , ] Training/Technical Assistance ; [ , ] and Sanctions and Penalties). DHS may approve an application and execute a contract with a contractor found to be seriously deficient for failure to comply with program requirements if such contractor demonstrates to the satisfaction of DHS that all serious deficiencies identified by DHS have been or will be corrected. DHS will establish a date by which the day care home sponsoring organization must submit an acceptable plan to correct the serious deficiencies identified by DHS. If a contractor fails to demonstrate by submission of an acceptable corrective action plan by the specified date that all serious deficiencies identified by DHS have been or will be corrected, DHS will notify the contractor of its intent to terminate the contractor's agreement, in whole or in part [ that their agreement is terminated, in whole or in part, effective the last day of the month in which their corrective action plan was due and that DHS will deny payment of any claims for reimbursement after that date ].

(f) [ (d) ] DHS denies applications for participation and terminates agreements, in whole or in part, with contractors sponsoring day homes for failure to submit a balanced and reasonable budget.

(g) [ (e) ] Sponsoring organizations of day homes must terminate the participation of day home providers who have been found guilty of committing fraud in the [ Child and Adult Care Food Program ( ] CACFP [ ) ], including cases in which adjudication is deferred. Denial of participation in the CACFP is effective for the duration of the sentence of the court[ , and termination is effective when the sentence is pronounced ].

(h) [ (f) ] DHS denies applications and terminates agreements, in whole or in part, with contractors if they have permitted any individual identified in §12.3(h) of this title (relating to Eligibility of Contractors , [ and ] Facilities , and Food Service Management Companies ) to enter the facility when children are present.

(i) [ (g) ] DHS denies applications and terminates agreements, in whole or in part, with contractors if they have permitted any individual identified in 12.3(i) of this title (relating to Eligibility of Contractors , [ and ] Facilities , and Food Service Management Companies ) to engage in any activity related to the administration of the CACFP.

(j) [ (h) ] DHS terminates agreements, in whole or in part, with contractors that sponsor day care homes if they receive reimbursement for fewer than 50 day care homes for three consecutive months.

(k) [ (i) ] DHS denies applications for participation and terminates agreements, in whole or in part, with contractors subject to the bonding requirement identified in §12.3(b) of this title (relating to Eligibility of Contractors , [ and ] Facilities , and Food Service Management Companies ) if they fail to submit and maintain in good standing a performance bond in the amount established by DHS. DHS denies requests for relief from the bonding requirement if the contractor has an outstanding financial obligation to DHS.

(l) [ (j) ] Sponsoring organizations of day homes must:

(1) terminate the participation of any day care home provider that they have determined has knowingly claimed meals for a child not enrolled for child care or not in attendance on a day that meals were claimed for the child; and

(2) submit the provider for inclusion on a list of seriously deficient providers.

(m) [ (k) ] Sponsoring organizations of day homes must:

(1) terminate the participation of any day care home provider that refuses to enter into or comply with a corrective action plan designed to achieve compliance with program requirements ; [ : ] and

(2) submit the provider for inclusion on a list of seriously deficient providers.

(n) [ (l) ] DHS denies or revokes the registration of a food service management company (FSMC) for failure to demonstrate its ability to perform according to program requirements, or for failure to submit all necessary documentation to complete the application within 60 calendar days. DHS may deny participation to a FSMC or any combination of its food preparation facilities. If DHS denies the application, the FSMC may not reapply for the remainder of the fiscal year in which the application was submitted. A FSMC may appeal the denial or revocation of registration according to §12.26 of this title (relating to Appeals).

§12.26.Appeals.

(a) Contractor and day care home provider [ food service management company ] appeals of Texas Department of Human Services (DHS) actions are conducted according to 7 Code of Federal Regulations §226.6 , and Chapter 79, Subchapter Q of this title (relating to Formal Appeals) [ §79.1602 of this title (relating to Right to a Hearing) ] , and in accordance with §17(d) of the Richard B. Russell National School Lunch Act, as amended by Public Law 106-224. Food service management company appeals of DHS actions are conducted according to 7 Code of Federal Regulations §226.6 and Chapter 79, Subchapter Q of this title (relating to Formal Appeals) .

(b) DHS requires that contractors appealing actions taken by DHS based on the findings of federal audits request a hearing to be conducted by the United States Department of Agriculture (USDA).

(c) [ (b) ] Contractors must provide appeals of denial of eligibility for free and reduced- price meals according to 7 Code of Federal Regulations §226.23.

(d) [ (c) ] Contractors may appeal a DHS decision not to request a USDA determination of good cause for submission of a late claim, as described in §12.15(f) of this title (relating to Reimbursement Methodology). Contractors may not appeal a USDA decision that the late claim is ineligible for payment.

(e) [ (d) ] Contractors that sponsor day care homes must develop appeal procedures and submit them to DHS for approval. The appeal procedures must be provided to each day care home when:

(1) the day care home enrolls in the CACFP; and

(2) the contractor takes an adverse action on the day care home provider. An adverse action is any action that denies or reduces program benefits to the day care home provider.

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

Filed with the Office of the Secretary of State on February 1, 2002.

TRD-200200652

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: March 17, 2002

For further information, please call: (512) 438-3734


Chapter 19. NURSING FACILITY REQUIREMENTS FOR LICENSURE AND MEDICAID CERTIFICATION

Subchapter C. NURSING FACILITY LICENSURE APPLICATION PROCESS

40 TAC §19.201, §19.211

The Texas Department of Human Services (DHS) proposes to amend §19.201, concerning criteria for licensing, and new §19.211, concerning relocation, in its Nursing Facility Requirements for Licensure and Medicaid Certification chapter.

The purpose of the amendment to §19.201 is to clearly inform providers of the information they must disclose to DHS, which is consistent with the criteria DHS may use to deny a license or renewal of a license. The applicant must disclose any state or federal criminal convictions for any offense that imposes a penalty of incarceration. The requirement to disclose convictions of "moral turpitude" has been removed, because there is no clear definition of moral turpitude. The purpose of new section §19.211 is to incorporate current internal procedures for handling licensure requirements when a nursing facility relocates to a different location.

James R. Hine, Commissioner, has determined that for the first five-year period the sections are in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the sections.

Mr. Hine also has determined that for each year of the first five years §19.201 is in effect, the public benefit anticipated as a result of adoption of the proposed rule will be clear guidance to providers regarding the information that must be disclosed on the application submitted to DHS. The public benefit anticipated as a result of adoption of proposed §19.211 will be clear guidance to facility owners regarding relocation of a long-term care facility. There will be no adverse economic effect on small or micro businesses, because the sections will provide clear instructions to applicants on background information that must be provided on initial or renewal applications, and provide clear information to long-term care facility owners regarding the relocation process. There is no anticipated economic cost to persons who are required to comply with the proposed sections. There is no anticipated effect on local employment in geographic areas affected by these sections.

Questions about the content of this proposal may be directed to Jeanoyce Wilson at (512) 438-2353 in DHS's Long-Term Care Policy section. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-057, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

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

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

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

§19.201.Criteria for Licensing.

(a) - (d) (No change.)

(e) An applicant for a license must affirmatively show that:

(1) the applicant and all persons required to submit background information do not have [ not been convicted of a felony or crime involving moral turpitude in this state or any other ] state or federal criminal convictions for any offense that provides a penalty of incarceration ;

(2) - (5) (No change.)

(f) - (j) (No change.)

§19.211.Relocation.

(a) A license holder may not relocate a facility to another location without approval from the Texas Department of Human Services (DHS). The license holder must submit a complete application and the fee required under §19.216 of this title (relating to License Fees) to DHS before the relocation.

(b) Residents may not be relocated until the new building has been inspected and approved as meeting the standards of the Life Safety Code as applicable to nursing facilities.

(c) Following Life Safety Code approval by DHS, the license holder must notify DHS of the date residents will be relocated. If the new facility meets the standards for operation based on an on- site survey, a license will be issued.

(d) The effective date of the license will be the date all residents are relocated.

(e) The license holder must continue to maintain the license at the current location and must continue to meet all requirements for operation of the facility until the date of the relocation.

(f) This section applies to relocation of a currently licensed facility, and does not govern the relocation of Medicaid-certified beds. See §19.2322 of this title (relating to Allocation, Reallocation, and Decertification Requirements) for guidelines on relocation of Medicaid-certified beds.

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

Filed with the Office of the Secretary of State on January 31, 2002.

TRD-200200608

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: March 17, 2002

For further information, please call: (512) 438-3734


Chapter 30. MEDICAID HOSPICE PROGRAM

The Texas Department of Human Services (DHS) proposes to amend §30.14, concerning certification of terminal illness, §30.16, concerning election of hospice care, §30.20, concerning change of the designated hospice, §30.30, concerning requirements for participation as a Medicaid hospice provider, §30.54, concerning special coverage requirements, and §30.82, concerning sanctions, in its Medicaid Hospice Program chapter. The purpose of the amendments is to clarify existing language in the area of continuous home care and physician certification for terminal illness. Additional technical changes were made to correct numbering and addresses.

The proposal amends physician certification to reflect Medicare guidelines. Providers must ensure that eligibility forms are submitted before payment. Definitions for crisis and nursing services were added to the rule base, as well as additional documentation requirements for the description of the crisis and how the provider plans to resolve the crisis. Deadlines for review of the documentation submitted with an extension request were extended to 16 hours or 10 calendar days, depending on when the packet was mailed to DHS. DHS will consider one continuous home care extension request per each period of crisis. DHS may review continuous home care provided more than one time per month to the same recipient.

James R. Hine, Commissioner, has determined that for the first five-year period the proposed sections will be in effect, there will be no fiscal implications for state or local governments as a result of enforcing or administering the sections.

Mr. Hine also has determined that for each year of the first five years the sections are in effect, the public benefit anticipated as a result of adoption of the proposed rules will be additional accountability and consistency of service delivery among hospice providers. There will not be an effect on small or micro businesses as a result of enforcing or administering the sections because the rules do not require providers to do anything additional under current rule. There will be no anticipated effect on local employment in geographic areas affected by these sections.

Questions about the content of this proposal may be directed to Maxcine Tomlinson at (512) 438-3169 in DHS's Long Term Care Policy section. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-060, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

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

Subchapter B. ELIGIBILITY REQUIREMENTS

40 TAC §§30.14, 30.16, 30.20

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

The amendments implement the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

§30.14.Certification of Terminal Illness.

(a) Timing of certification.

(1) [ Except as provided in paragraph (2) of this subsection, the ] The hospice must obtain the oral [ written ] certification of terminal illness from a physician no later than two calendar days after the period begins.

(2) For the initial period, the physician(s) must sign and date the Medicaid Hospice Program Physician Certification of Terminal Illness form before the hospice submits an initial request for payment. The physician must sign and date the Medicaid Hospice Program Physician Certification of Terminal Illness form in all cases before the expiration date of each six-month certification period. Forms must be submitted by the hospice as outlined in §30.62 of this title (relating to Medicaid Hospice Claims Processing Requirements) and must be submitted before billing [ if the hospice cannot obtain the written certification within two calendar days, it must obtain oral certifications within two calendar days and written certification no later than eight calendar days after the period begins ].

[ (3) Upon receipt of the certification, hospice staff must:]

[ (A) make an appropriate entry in the patient's medical record as soon as they receive an oral certification; and]

[ (B) file written certifications in the medical record.]

(b) Content of certification. The certification must specify that the individual's prognosis is for a life expectancy of six months or less if the terminal illness runs its normal course. The certification statement must be based on record review or consultation with the referring physician.

(c) Sources of certification.

[ (1) ] For the initial period, the hospice must obtain written certification statements, and oral certification statements if required under subsection (a)(2) of this section, from:

(1) [ (A) ] the medical director of the hospice or the physician member of the hospice interdisciplinary group; and

(2) [ (B) ] the individual's attending physician if the individual has an attending physician.

(d) Documentation.

(1) Upon receipt of the certification, hospice staff must:

(A) for oral certification:

(i) make an appropriate entry in the patient's medical record as soon as they receive an oral certification;

(ii) notify the nursing facility of oral certification, when applicable; and

(B) file written certifications in the medical record.

(2) Documentation must include the name of the physician who makes the oral certification and the date it was received. The individual who makes the entry into the recipient's record must sign and date the entry.

(e) Client-specific assessment.

(1) [ (2) ] For subsequent periods after the first year, the hospice must conduct a client-specific comprehensive assessment that:

(A) identifies the client's need for hospice services in the areas of medical, nursing, social, emotional, and spiritual care. Hospice services include, but are not limited to, the palliation and management of the terminal illness and conditions related to the terminal illness; and

(B) contains a narrative from the physician that clearly identifies the reasons the patient is considered terminally ill, with a prognosis of less than six months to live.

(2) [ (3) ] The assessment must be done no earlier than 30 workdays before the recertification date. The hospice provider must retain copies of all physician's certification statements, a current Texas Index for Level of Effort (TILE) assessment, if applicable, and the client-specific comprehensive assessment in both the hospice's records for the recipient and the recipient's nursing facility clinical record, if applicable.

(f) Record maintenance. The hospice provider must maintain copies of all physician certification forms in the recipient's hospice records and, when applicable, the recipient's nursing facility clinical record.

§30.16.Election of Hospice Care.

(a) Filing an election statement. An individual who meets the eligibility requirement of §30.10 of this title (relating to Eligibility Requirements) may file an election statement with a particular hospice. If the individual is physically or mentally incapacitated, the individual's representative may file the election statement. If the recipient is dually eligible for Medicaid and Medicare, the individual must elect the Medicaid and Medicare hospice benefit at the same time.

(b)-(f) (No change.)

§30.20.Change of the Designated Hospice.

(a) An individual or representative may change, once in each election period, the designation of the particular hospice from which hospice care will be received. If the recipient is dually eligible for Medicaid and Medicare, the individual must change the Medicaid and Medicare hospice benefit at the same time.

(b)-(c) (No change.)

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

Filed with the Office of the Secretary of State on January 31, 2002.

TRD-200200595

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: March 17, 2002

For further information, please call: (512) 438-3734


Subchapter C. PROVIDER REQUIREMENTS FOR ENTRANCE INTO THE TEXAS MEDICAID HOSPICE PROGRAM; DISCLOSURE REQUIREMENTS

40 TAC §30.30

The amendment is proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs, and under Texas Government Code, §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The amendment implements the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

§30.30.Requirements for Participation as a Medicaid Hospice Provider.

(a)-(c) (No change.)

(d) Providers that serve dually eligible (Medicaid and Medicare) recipients must have a fully executed Medicaid hospice contract to receive any Medicaid payment.

(e) [ (d) ] The contracting hospice provider agrees to:

(1) comply with the Civil Rights Act of 1964 (Public Law 88-352), Title VI; the Rehabilitation Act of 1973 (Public Law 93-112), §504; the Age Discrimination Act of 1975; the Americans with Disabilities Act of 1990 (Public Law 101-336); the Safe Medical Devices Act of 1990; and all amendments to each and all requirements imposed by the regulations issued pursuant to these acts. In addition, the contractor agrees to comply with Chapter 73 of this title (relating to Civil Rights). These provide in part that no persons shall, on the grounds of race, color, national origin, sex, age, disability, political beliefs or religion be excluded from participation in, or denied any aid, care, service or other benefits provided by federal and/or state funding, or otherwise be subjected to discrimination.

(2) comply with Texas Health and Safety Code, Chapter 85, Subchapter E (relating to Workplace and Confidentiality Guidelines Regarding AIDS and HIV).

(3) comply with 42 Code of Federal Regulations, Part 455.

(f) [ (e) ] A provider must not have restrictive policies or practices, including:

(1) requiring the recipient to execute a will, with the provider named as legatee or devisee;

(2) requiring the recipient to assign his life insurance to the provider;

(3) requiring the recipient to transfer property to the provider;

(4) requiring the recipient to pay a lump sum or make any other payment or concession to the provider beyond the recognized Medicaid rate;

(5) controlling or restricting the recipient, the recipient's guardian, or responsible party in the use of the recipient's personal needs allowance while in a nursing facility;

(6) restricting the recipient from transferring or withdrawing from the hospice program at will except as provided by state law;

(7) denying appropriate care to a recipient on the basis of that recipient's race, religion, color, national origin, sex, age, disability, marital status, or source of payment; and

(8) preventing or requiring the execution of written or unwritten directives to reject life-sustaining procedures by adult recipients.

(g) [ (f) ] DHS reserves the right to reject the provider's participation or to cancel an existing contract if the provider charges the Medicaid recipient or any member of his family, except as allowed within DHS policies and regulations.

(h) [ (g) ] To appeal the termination of a Medicaid hospice contract, a provider must submit a written request for a contract appeals hearing that is received by DHS within 15 days of the provider's receipt of the letter notifying the provider of the proposed action. The provider must send the request for a hearing to the Hearings Department, Texas Department of Human Services, P.O. Box 149030, Mail Code W-613, Austin, Texas 78714- 9030. Hearings will be held in Austin, Texas. Overnight mail must be sent to the Hearings Department, Texas Department of Human Services, 701 West 51st Street, Mail Code W-613, Austin, Texas 78751.

(i) [ (h) ] DHS's interpretations of the requirements for participation or the contract may not be appealed to DHS's hearings department unless the interpretation has caused an adverse action for the provider.

(j) [ (i) ] Providers must allow representatives of DHS, the Medicaid Fraud Control Unit, and the Texas [ Department of ] Health and Human Services Commission (HHSC) to enter the premises at any time to make inspections or privately interview the recipients of Medicaid assistance.

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

Filed with the Office of the Secretary of State on January 31, 2002.

TRD-200200596

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: March 17, 2002

For further information, please call: (512) 438-3734


Subchapter E. COVERED SERVICES

40 TAC §30.54

The amendment is proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs, and under Texas Government Code, §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The amendment implements the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

§30.54.Special Coverage Requirements.

(a) Continuous home care. Continuous care is to be provided only during periods of crisis to maintain the recipient at the recipient's place of residence. A period of crisis is a period in which a recipient requires continuous care which is primarily skilled nursing care to achieve palliation or management of acute medical symptoms.

(1)-(3) (No change.)

(4) The services may be provided for up to five consecutive days. The Texas Department of Human Services (DHS) may review multiple continuous home care episodes within a consecutive 30-day period.

(5) (No change.)

(6) For purposes of this section, the following definitions apply:

(A) Nursing services--Nursing tasks that could not reasonably be delegated to family members or nurse aides.

(B) Crisis--A sudden paroxysmal intensification of symptoms that appropriate medical intervention and nursing services could reasonably be expected to ameliorate.

(7) [ (6) ] Prior to providing continuous home care, the provider must advise and discuss with the family or responsible party that temporary alternate placement may be necessary at the end of the five consecutive days. The provider must document the discussion with the family or responsible party in the recipient's records.

(8) [ (7) ] If the provider believes that the crisis period will extend beyond the five consecutive days, the interdisciplinary team must discuss the temporary placement alternatives available to meet the needs of the recipient during the crisis period, such as a hospital or nursing facility. This discussion must be documented. If, after this discussion, the provider believes that an extension of continuous home care is necessary instead of alternative placement, the provider must submit a written request for an extension of continuous care to DHS. Faxed submissions will not be considered.

(A) The written request must be sent to Texas Department of Human Services, Long-Term Care Policy Section, Attention Medicaid Hospice, P.O. Box 149030, Mail Code W-519 [ Y-519 ], Austin, Texas, 78714-9030. Overnight mail must be sent to the Long-Term Care Policy Section, Texas Department of Human Services, 701 West 51st Street, Mail Code W-519, Austin, Texas 78751.

(B) The written request must include:

(i) description of the specific crisis and how the provider plans to resolve the crisis;

(ii) [ (i) ] documentation of all continuous home care provided during the previous four [ five ] days;

(iii) [ (ii) ] physician's orders;

(iv) [ (iii) ] documentation of daily physician care plan oversight;

(v) [ (iv) ] documentation that skilled nursing care was provided as more than half of the care given in a 24-hour period for each of the four [ five ] days of continuous care;

(vi) [ (v) ] the number of days of continuous home care requested for the extension; and

(vii) [ (vi) ] documentation of the interdisciplinary team's discussion regarding alternate placement, including why continuous home care must be extended and why temporary alternate placement is not presently warranted.

(9) The continuous home care request will be denied if documentation is incomplete. Documentation mailed on or before the fifth consecutive day of the crisis period will be reviewed by DHS within 16 work hours of the time the documentation is received in the Long-Term Care Policy Section, at the address identified in paragraph (8) (A) of this subsection. Documentation mailed after the fifth consecutive day will be reviewed by DHS within 10 calendar days of the time the documentation is received in the Long-Term Care Policy Section, at the address identified in paragraph (8)(A) of this subsection.

(10) Multiple requests for extensions for the same period of crisis will not be considered. If multiple requests are received, DHS will consider only the first written request.

(11) [ (8) ] The Texas Department of Human Services (DHS) may extend continuous home care if it deems it medically necessary. Providers will be notified in writing of DHS's [ the department's ] decision within the time frames outlined in paragraph (9) of this subsection [ eight work hours ] after DHS's [ the department's ] receipt of the written request and documentation at the address outlined in paragraph (8)(A) of this subsection. DHS [ The department ] will fax the response to the provider if the provider includes a fax number with the extension request.

(12) [ (9) ] If DHS denies the request for an extension of continuous home care, the provider will be paid at the routine home care rate or inpatient care rate, if applicable, for subsequent days of care.

(13) [ (10) ] Request for reconsideration. If the provider does not agree with DHS's [ the department's ] denial of the request for an extension of continuous home care, the provider may request a reconsideration of the decision at the state office level. The written request for reconsideration and all supporting documentation must be submitted to DHS at the address in paragraph (8) [ (7) ] (A) of this subsection no later than the tenth calendar day after the provider's receipt of the denial of the request for an extension. DHS's reconsideration will be limited to a review of the documentation submitted. DHS will complete the reconsideration no later than the tenth calendar day after receipt of the request for reconsideration.

(b) (No change.)

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

Filed with the Office of the Secretary of State on January 31, 2002.

TRD-200200597

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: March 17, 2002

For further information, please call: (512) 438-3734


Subchapter H. ENFORCEMENT

40 TAC §30.82

The amendment is proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs, and under Texas Government Code, §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The amendment implements the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

§30.82.Sanctions.

(a)-(c) (No change.)

(d) The provider agency has the right to appeal any adverse action against its contract by filing a written request for a hearing so that DHS receives the request within 15 calendar days after the provider agency receives DHS's written notification of adverse action. The provider must send the request for a hearing to the Hearings Department, Texas Department of Human Services (DHS), P.O. Box 149030, Mail Code W-613 [ W-615 ], Austin, Texas 78714-9030. Hearings will be held in Austin, Texas. Overnight mail must be sent to the Hearings Department, Texas Department of Human Services, 701 West 51st Street, Mail Code W-613, Austin, Texas 78751.

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

Filed with the Office of the Secretary of State on January 31, 2002.

TRD-200200598

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: March 17, 2002

For further information, please call: (512) 438-3734


Chapter 90. INTERMEDIATE CARE FACILITIES FOR PERSONS WITH MENTAL RETARDATION OR RELATED CONDITIONS

Subchapter B. APPLICATION PROCEDURES

40 TAC §90.11, §90.22

The Texas Department of Human Services (DHS) proposes to amend §90.11, concerning criteria for licensing, and new §90.22, concerning relocation, in its Intermediate Care Facilities for Persons with Mental Retardation or Related Conditions chapter.

The purpose of the amendment to §90.11 is to clearly inform providers of the information they must disclose to DHS, which is consistent with the criteria DHS may use to deny a license or renewal of a license. The applicant must disclose any state or federal criminal convictions for any offense that imposes a penalty of incarceration. The requirement to disclose convictions of "moral turpitude" has been removed, because there is no clear definition of moral turpitude. The purpose of new section §90.22 is to incorporate current internal procedures for handling licensure requirements when an intermediate care facility for persons with mental retardation or related conditions relocates to a different location.

James R. Hine, Commissioner, has determined that for the first five-year period the sections are in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the sections.

Mr. Hine also has determined that for each year of the first five years §90.11 is in effect, the public benefit anticipated as a result of adoption of the proposed rule will be clear guidance to providers regarding the information that must be disclosed on the application submitted to DHS. The public benefit anticipated as a result of adoption of proposed §90.22 will be clear guidance to facility owners regarding relocation of an intermediate care facility for persons with mental retardation or related conditions. There will be no adverse economic effect on small or micro businesses, because the sections will provide clear instructions to applicants on background information that must be provided on initial or renewal applications, and provide clear information to facility owners regarding the relocation process. There is no anticipated economic cost to persons who are required to comply with the proposed sections. There is no anticipated effect on local employment in geographic areas affected by these sections.

Questions about the content of this proposal may be directed to Jeanoyce Wilson at (512) 438-2353 in DHS's Long-Term Care Policy section. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-057, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

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

The amendment and new section are proposed under the Health and Safety Code, Chapter 252, which authorizes DHS to license and regulate intermediate care facilities for the mentally retarded.

The amendment and new section implement the Health and Safety Code, §§252.001- 252.186.

§90.11.Criteria for Licensing.

(a) - (b) (No change.)

(c) An applicant for a license must affirmatively show that:

(1) the applicant, person with a disclosable interest, affiliate, and manager do not have [ not been convicted of a felony or crime involving moral turpitude in this state or any other ] state or federal criminal convictions for any offense that provides a penalty of incarceration ;

(2) - (5) (No change.)

(d) (No change.)

§90.22.Relocation.

(a) A license holder may not relocate a facility to another location without approval from Texas Department of Human Services (DHS). The license holder must submit a complete application and the fee required under §90.19 of this title (relating to License Fees) to DHS before the relocation.

(b) Residents may not be relocated until the new building has been inspected and approved as meeting the standards of the Life Safety Code as applicable to intermediate care facilities serving persons with mental retardation or a related condition.

(c) Following Life Safety Code approval by DHS, the license holder must notify DHS of the date residents will be relocated. If the new facility meets the standards for operation based on an on- site survey, a license will be issued.

(d) The effective date of the license will be the date all residents are relocated.

(e) The license holder must continue to maintain the license at the current location and must continue to meet all requirements for operation of the facility until the date of the relocation.

(f) This section applies to relocation of a currently licensed facility. See §90.14 of this title (relating to Increase in Capacity) for regulations governing capacity increases.

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

Filed with the Office of the Secretary of State on January 31, 2002.

TRD-200200609

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: March 17, 2002

For further information, please call: (512) 438-3734


Chapter 92. LICENSING STANDARDS FOR ASSISTED LIVING FACILITIES

Subchapter B. APPLICATION PROCEDURES

40 TAC §§92.10, 92.14, 92.17, 92.23

The Texas Department of Human Services (DHS) proposes to amend §92.10, concerning criteria for licensing, §92.14, increase in capacity, §92.17, concerning criteria for denying a license or renewal of a license, and new §92.23, concerning relocation, in its Licensing Standards for Assisted Living Facilities chapter.

The purpose of the amendment to §92.10 is to clearly inform providers of the information they must disclose to DHS, which is consistent with the criteria DHS may use to deny a license or renewal of a license. The applicant must disclose any state or federal criminal convictions for any offense that imposes a penalty of incarceration. The requirement to disclose convictions of "moral turpitude" has been removed, because there is no clear definition of moral turpitude. The purpose of the amendments to §92.14 and §92.17 is to correct a reference. The purpose of new section §92.23 is to incorporate current internal procedures for handling licensure requirements when an assisted living facility relocates to a different location.

James R. Hine, Commissioner, has determined that for the first five-year period the section is in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the section.

Mr. Hine also has determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of adoption of the proposed rule will be clear guidance to providers regarding the information that must be disclosed on the application submitted to DHS. There will be no adverse economic effect on small or micro businesses, because the amendment will provide clear instructions to applicants on background information that must be provided on initial or renewal applications. There is no anticipated economic cost to persons who are required to comply with the proposed section. There is no anticipated effect on local employment in geographic areas affected by this section.

Questions about the content of this proposal may be directed to Jeanoyce Wilson at (512) 438-2353 in DHS's Long-Term Care Policy section. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-057, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

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

The amendments and new section are proposed under the Health and Safety Code, Chapter 247, which authorizes DHS to license and regulate assisted living facilities.

The amendments and new section implement the Health and Safety Code, §§247.001- 247.068.

§92.10.Criteria for Licensing.

(a) - (d) (No change.)

(e) An applicant for a license must affirmatively show that:

(1) the applicant, the controlling person, person with a disclosable interest, affiliate, and manager do not have [ not been convicted of a felony or crime involving moral turpitude in Texas or any other ] state or federal criminal convictions for any offense that provides a penalty of incarceration ;

(2) - (4) (No change.)

(f) (No change.)

§92.14.Increase in Capacity.

(a) During the license term, a license holder may not increase capacity without approval from the Texas Department of Human Services (DHS). The license holder must submit to DHS a complete application for increase in capacity and the fee required in §92.20 [ §92.18 ] of this title (relating to License Fees).

(b) (No change.)

§92.17.Criteria for Denying a License or Renewal of a License.

(a) The Texas Department of Human Services (DHS) may deny an initial license or refuse to renew a license if an applicant, or any person required to submit background and qualification information:

(1) substantially fails to comply with the requirements described in §92.41 of this title (relating to Standards for Type A , [ and ] Type B , and Type E Assisted Living Facilities) including, but not limited to:

(A) - (B) (No change.)

(2) - (4) (No change.)

(5) fails to pay the following fees, taxes and assessments when due:

(A) licensing fees as described in §92.20 [ §92.18 ] of this title (relating to License Fees); or

(B) (No change.)

(6)-(7) (No change.)

(b) - (f) (No change.)

§92.23.Relocation.

(a) A license holder may not relocate a facility to another location without approval from the Texas Department of Human Services (DHS). The license holder must submit to DHS a complete application and the fee required under §92.20 of this title (relating to License Fees) before the relocation.

(b) Residents may not be relocated until the new building has been inspected and approved as meeting the standards of the Life Safety Code as applicable to assisted living facilities.

(c) Following Life Safety Code approval by DHS, the license holder must notify DHS the date residents will be relocated. If the new facility meets the standards for operation based on an on- site survey, a license will be issued.

(d) The effective date of the license will be the date all residents are relocated.

(e) The license holder must continue to maintain the license at the current location and must continue to meet all requirements for operation of the facility until the date of the relocation.

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

Filed with the Office of the Secretary of State on January 31, 2002.

TRD-200200610

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: March 17, 2002

For further information, please call: (512) 438-3734


Chapter 98. ADULT DAY CARE AND DAY ACTIVITY AND HEALTH SERVICES REQUIREMENTS

Subchapter B. APPLICATION PROCEDURES

40 TAC §98.11, §98.23

The Texas Department of Human Services (DHS) proposes to amend §98.11, concerning criteria for licensing, and new §98.23, concerning relocation, in its Adult Day Care and Day Activity and Health Services Requirements chapter.

The purpose of the amendment to §98.11 is to clearly inform providers of the information they must disclose to DHS, which is consistent with the criteria DHS may use to deny a license or renewal of a license. The applicant must disclose any state or federal criminal convictions for any offense that imposes a penalty of incarceration. The requirement to disclose convictions of "moral turpitude" has been removed, because there is no clear definition of moral turpitude. The purpose of new section §98.23 is to incorporate current internal procedures for handling licensure requirements when a facility relocates to a different location.

James R. Hine, Commissioner, has determined that for the first five-year period the sections are in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the section.

Mr. Hine also has determined that for each year of the first five years §98.11 is in effect, the public benefit anticipated as a result of adoption of the proposed rule will be clear guidance to providers regarding the information that must be disclosed on the application submitted to DHS. The public benefit anticipated as a result of adoption of proposed §98.23 will be clear guidance to facility owners regarding relocation of an intermediate care facility. There will be no adverse economic effect on small or micro businesses, because the sections will provide clear instructions to applicants on background information that must be provided on initial or renewal applications, and provide clear information to facility owners regarding the relocation process. There is no anticipated economic cost to persons who are required to comply with the proposed sections. There is no anticipated effect on local employment in geographic areas affected by this sections.

Questions about the content of this proposal may be directed to Jeanoyce Wilson at (512) 438-2353 in DHS's Long-Term Care Policy section. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-057, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

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

The amendment and new section are proposed under the Human Resources Code, Chapter 103, which authorizes DHS to license and regulate adult day care facilities.

The amendment and new section implement the Health and Safety Code, §§103.001- 103.011.

§98.11.Criteria for Licensing.

(a) - (c) (No change.)

(d) An applicant for a license must affirmatively show the following:

(1) the applicant, person with a disclosable interest, affiliate, and manager do not have [ not been convicted of a felony or crime involving moral turpitude in Texas or any other ] state or federal criminal convictions for any offense that provides a penalty of incarceration ;

(2) - (4) (No change.)

(e) - (g) (No change.)

§98.23.Relocation.

(a) A license holder may not relocate a facility to another location without approval from the Texas Department of Human Services (DHS). The license holder must submit a complete application and the fee required under §98.21 of this title (relating to License Fees) to DHS before the relocation.

(b) Residents may not be relocated until the new building has been inspected and approved as meeting the standards of the Life Safety Code as applicable to adult day care facilities.

(c) Following Life Safety Code approval by DHS, the license holder must notify DHS of the date residents will be relocated. If the new facility meets the standards for operation based on an on- site survey, a license will be issued.

(d) The effective date of this license will be the date all residents are relocated.

(e) The license holder must continue to maintain the license at the current location and must continue to meet all requirements for operation of the facility until the date of the relocation.

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

Filed with the Office of the Secretary of State on January 31, 2002.

TRD-200200611

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: March 17, 2002

For further information, please call: (512) 438-3734