TITLE 1.ADMINISTRATION

Part 1. OFFICE OF THE GOVERNOR

Chapter 3. CRIMINAL JUSTICE DIVISION

The Office of the Governor proposes amendments to Subchapter B §3.87; and Subchapter C §3.505, §3.719, and §3.1413.

The proposed amendments provide processes and procedures relating to grants made through the Criminal Justice Division and include, but are not limited to, program income, eligible applicants under the Victims of Crime Act Fund, district attorney agreement under the Edward Byrne Memorial Fund, and grant period under the Rural Domestic Violence and Child Victimization Enforcement Program.

The proposed amendment to §3.87(e) adds language that was previously contained in §3.719(a)(5) because this language relates primarily to program income. The proposed amendment also adds the words "accrued interest" to §3.87(e) because accrued interest is a type of program income.

The proposed amendment to §3.505 conforms the list of eligible applicant under the Victims of Crime Act Fund to the federal requirements for this funding source.

The proposed amendment to §3.719(a)(4) allows a district attorney who does not have a CJD-funded attorney: (1) to recover some of the cost associated with handling civil forfeiture proceedings; and (2) to develop standardized equitable sharing guidelines for funds, accrued interest, and property attributable to the efforts of a task force that are similar to guidelines applied to funds, accrued interest, and property attributable to the efforts of other law enforcement agencies. In addition, the language in §3.719(a)(5) is deleted and is added to §3.87(e) because this language relates primarily to program income.

The proposed amendment to §3.1413 increases the length of the grant period to 24 months for grants awarded under the Rural Domestic Violence and Child Victimization Enforcement Program in accordance with the federal requirements for this funding source.

The Office of the Governor reviewed the rules affecting the Criminal Justice Division grant processes and procedures with the goal of increasing efficiency and updating the rules to address changes in the administration process. The review disclosed that a number of the rules required further clarification and simplification. As a result, the Office of the Governor has determined that the sections in the Texas Administrative Code identified above should be amended.

Tom Jones, Director of Accounting for the Criminal Justice Division, 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. Jones also has determined that for the first five-year period that the sections are in effect the public benefit anticipated as a result of enforcing the sections will be more efficient processes and procedures and the current rules will be more easily understood. There will be no anticipated economic cost to persons or small businesses for complying with the sections. There will be no anticipated economic costs to persons who are required to comply with the proposed amendments.

Comments on the proposed amendments may be submitted to Heather Morgan, Office of the Governor, Criminal Justice Division, at hmorgan@governor.state.tx.us; P. O. Box 12428, Austin, Texas 78711; or (512) 463-1919. Comments must be received no later than 30 days from the date of publication of the proposal in the Texas Register .

Subchapter B. GENERAL GRANT PROGRAM POLICIES

2. GRANT BUDGET REQUIREMENTS

1 TAC §3.87

The amendment of this rule is proposed under the Texas Government Code, Title 7, §772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division, the authority to adopt rules and procedures as necessary.

The amended rule implements the Texas Government Code, Title 7, §772.066(a), which requires the Office of the Governor, Criminal Justice Division, to advise and assist the governor in developing policies, plans, programs, and proposed legislation for improving the coordination, administration, and effectiveness of the criminal justice system.

No other statutes, articles, or codes are affected by the amendment of this rule.

§3.87.Program Income.

(a) Rules governing the use of program income are included in the provisions adopted by reference in §3.19 of this chapter.

(b) Grantees must use program income to supplement project costs or to offset project costs. Program income may only be used for allowable project costs. Otherwise, grantees must refund program income to CJD. The use of program income must be reflected in the budget.

(c) CJD may require or allow a grantee to transfer the CJD portion of program income and property to another grant, grantee or to CJD.

(d) Grantees must submit written requests to CJD to carry program income forward from one grant year to the next within 90 calendar days after the end of the grant period. Grantees may not carry program income forward without written CJD approval.

(e) All funds, accrued interest, and property awarded to a grantee under a forfeiture action represent program income, and these funds shall be added to the funds committed to the project in accordance with federal regulations as adopted by reference in §3.19 of this chapter.

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 27, 2003.

TRD-200300666

David Zimmerman

Assistant General Counsel

Office of the Governor

Earliest possible date of adoption: March 9, 2003

For further information, please call: (512) 463-1919


Subchapter C. FUND-SPECIFIC GRANT POLICIES

5. VICTIMS OF CRIME ACT FUND

1 TAC §3.505

The amendment of this rule is proposed under the Texas Government Code, Title 7, §772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division, the authority to adopt rules and procedures as necessary.

The amended rule implements the Texas Government Code, Title 7, §772.066(a), which requires the Office of the Governor, Criminal Justice Division, to advise and assist the governor in developing policies, plans, programs, and proposed legislation for improving the coordination, administration, and effectiveness of the criminal justice system.

No other statutes, articles, or codes are affected by the amendment of this rule.

§3.505.Eligible Applicants.

(a) State agencies, units of local government, nonprofit corporations, Native American tribes, crime control and prevention districts, universities, community supervision and corrections departments, COGs, and faith-based organizations that provide direct services to victims of crime are eligible to apply for grants under this fund. In addition, upon [ Upon ] CJD approval, COGs may receive grants to function as a conduit agency to aid in the selection and management of qualified subgrantees. Faith-based organizations must be tax-exempt nonprofit entities certified by the Internal Revenue Service. Grantees may not use grant funds or program income for proselytizing or sectarian worship.

(b) All applicants must meet one of the following criteria:

(1) the applicant has a record of providing effective services to crime victims; or

(2) if an applicant does not have a demonstrated record of providing such services, it must show that at least 25 percent of its financial support comes from non-federal sources.

(c) All applicants must meet each of the following criteria:

(1) applicants must use volunteers, unless CJD determines that a compelling reason exists to grant an exception;

(2) applicants must promote community efforts to aid crime victims;

(3) applicants must help victims apply for compensation benefits;

(4) applicants must maintain and display civil rights information;

(5) applicants must provide services to victims of federal crimes on the same basis as victims of state and local crimes;

(6) applicants must provide grant-funded services at no charge to victims, and any deviation requires prior written approval by CJD; and

(7) applicants must maintain the confidentiality of all client-counselor information and research data, as required by state and federal law.

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 27, 2003.

TRD-200300667

David Zimmerman

Assistant General Counsel

Office of the Governor

Earliest possible date of adoption: March 9, 2003

For further information, please call: (512) 463-1919


7. EDWARD BYRNE MEMORIAL FUND

1 TAC §3.719

The amendment of this rule is proposed under the Texas Government Code, Title 7, §772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division, the authority to adopt rules and procedures as necessary.

The amended rule implements the Texas Government Code, Title 7, §772.066(a), which requires the Office of the Governor, Criminal Justice Division, to advise and assist the governor in developing policies, plans, programs, and proposed legislation for improving the coordination, administration, and effectiveness of the criminal justice system.

No other statutes, articles, or codes are affected by the amendment of this rule.

§3.719.District Attorney Agreement.

(a) All applications for multi-jurisdictional task forces under the Edward Byrne Memorial Fund program must include agreements executed by the appropriate district attorneys in accordance with the following rules:

(1) district attorneys must diligently pursue all prosecutable forfeiture actions arising from operations initiated and investigated by the task force;

(2) property seized by the task force under the provisions of law shall remain in the custody of the task force until final disposition of the forfeiture action;

(3) funds seized by the task force may be placed in the custody of the district attorney until final disposition of the forfeiture action provided such funds are maintained in a separate bank account subject to review by the task force and CJD;

(4) upon final disposition of the forfeiture action, all funds, accrued interest, and [ all ] property attributable to the efforts of the task force shall be awarded to the task force; however, if the task force does not have a CJD-funded attorney, the district attorney may retain up to 25 percent of the state’s portion of the final judgment amount; and

[ (5) all property and funds awarded to the task force under forfeiture action represent program income, and these funds shall be added to the funds committed to the project in accordance with federal regulations as adopted by reference in §3.19 of this chapter; and]

(5) [ (6) ] the agreement shall be in effect for the entire term of the task force grant (from the start date listed on the Statement of Grant Award until the end date listed thereon).

(b) Applications for multi-jurisdictional task forces under the Edward Byrne Memorial Fund program must include executed agreements for each county listed in the task force impact area. Counties must be contiguous and the participating district attorney may not execute an agreement with more than one task force project. A waiver may be granted by CJD in cases where a city's jurisdictional limits extend beyond a single county. The waiver will cover only that portion of the city that extends into the neighboring county.

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 27, 2003.

TRD-200300668

David Zimmerman

Assistant General Counsel

Office of the Governor

Earliest possible date of adoption: March 9, 2003

For further information, please call: (512) 463-1919


14. RURAL DOMESTIC VIOLENCE AND CHILD VICTIMIZATION ENFORCEMENT PROGRAM

1 TAC §3.1413

The amendment of this rule is proposed under the Texas Government Code, Title 7, §772.006(a)(11), which provides the Office of the Governor, Criminal Justice Division, the authority to adopt rules and procedures as necessary.

The amended rule implements the Texas Government Code, Title 7, §772.066(a), which requires the Office of the Governor, Criminal Justice Division, to advise and assist the governor in developing policies, plans, programs, and proposed legislation for improving the coordination, administration, and effectiveness of the criminal justice system.

No other statutes, articles, or codes are affected by the amendment of this rule.

§3.1413.Grant Period.

The grant period for any grant awarded under this program is 24 [ 15 ] months.

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 27, 2003.

TRD-200300669

David Zimmerman

Assistant General Counsel

Office of the Governor

Earliest possible date of adoption: March 9, 2003

For further information, please call: (512) 463-1919


Part 3. OFFICE OF THE ATTORNEY GENERAL

Chapter 55. CHILD SUPPORT ENFORCEMENT

Subchapter M. INTERCEPT OF INSURANCE CLAIMS

1 TAC §§55.601 - 55.606

The Office of the Attorney General proposes new Subchapter M, §§55.601 - 55.606, pertaining to Intercept of Insurance Claims. The new sections are proposed pursuant to Texas Family Code §231.015. Texas Family Code §231.015 was enacted by the 77th Legislature Regular Session (2001), House Bill 1365, effective September 1, 2001, and State law (Texas Family Code §231.015) requires the State's Title IV-D agency to establish procedures by rule.

Section 55.601. describes §231.015 of the Family Code.

Section 55.602. explains how the Child Support Lien Network is set-up.

Section 55.603. explains the process for data matches.

Section 55.604. explains how to register for access to the data base.

Section 55.605. explains protection for the insurance companies.

Section 55.606. explains the Title IV-D's confidentiality and security.

Cynthia Bryant, Deputy Attorney General for Child Support, has determined that for the first five years these sections as proposed are in effect, there will be no fiscal implications for state or local government.

Ms. Bryant has also determined that for each year of the first five years the sections as proposed are in effect, the public benefit as a result of these new sections will be increased child support collections as a result of child support liens being imposed on insurance settlement or awards owed to delinquent child support obligors.. In that these new sections merely describe the procedures that a financial institution will follow in complying with a voluntary program established under an already existing State statute, the new sections do not create any new economic costs for insurance companies, nor does the proposed new sections have any anticipated adverse effect on small or micro-businesses.

Ms. Bryant has also determined that there will be no local employment impact as a result of these proposed new sections.

Comments on these proposed new sections should be submitted to Hayley Hall, Business Improvement Section, Child Support Division, Office of the Attorney General, (physical address) 5500 East Oltorf, Austin, Texas, 78741 or (mailing address) P.O. Box 12017, mail code 046, Austin, Texas 78711-2017.

The new sections are proposed under the authority of Texas Family Code §231.015, which is affected by Federal law (42 USC 666).

The proposed new sections are affected by Texas Family Code §231.015.

§55.601.Scope.

Section 231.015 of the Family Code tasks the Child Support Division of the Office of the Attorney General, in consultation with the Texas Department of Insurance and representative of the insurance industry, with establishing by rule a pilot program whereby insurance companies may voluntarily cooperate with the Child Support Division in matching the names of those individuals who are or may be due liability insurance settlements or awards with the names of obligors who owe past-due child support. When such an individual is identified, the Child Support Division will file a child support lien on the pending settlement or award to secure the payment of past-due support. This subchapter explains how the matching process and the lien process work.

§55.602.Child Support Lien Network.

The Office of the Attorney General has joined the Child Support Lien Network (CSLN), a consortium of State child support enforcement agencies headed by the State of Rhode Island and Providence Plantations. Each of the participating State provides CSLN with a periodically updated list of its child support obligors. CSLN provides participating insurance companies with two methods of matching a pending settlement or award: an automatic data match, or an interactive lookup. The automatic data match is preferred because insurance companies need only take action on those claims that electronically match to a child support obligor.

§55.603.Automated Data Match.

(a) An insurance company can conduct an automatic electronic interface of its pending claims against the list of child support obligors through Insurance Service Office (ISO). ISO is an industry service provider, headquartered in New Jersey, which maintains the a claim search system to assist subscribing insurance companies in fraud detection.

(b) An insurance company desiring to participate in the automatic data matching process must give ISO permission to match its claim data with CSLN. ISO may be contacted at (800) 877-4476 or by email at njsupport@iso.com.

(c) CSLN matches its list of child support obligors daily against the ISO claim data.

(d) A participating insurance company will receive a notice of child support lien (or wage withholding instrument for a workers' compensation claim) only on those claims that the company has registered with ISO and that match the name of an obligor who owes past-due child support. This allows the insurance company to focus work efforts on only those claimants that actually require child support enforcement activity.

§55.604.Interactive Lookup.

(a) An insurance company may choose to check the name of an individual insurance claimant to see if there are outstanding child support obligations by accessing the CSLN data base of child support obligors.

(b) To register for access to this data base, a company must:

(1) go to the Office of the Attorney General's child support lien web page at http://www.childsupportliens.com/TX/ ;

(2) click on the "Register" label in the left margin and complete and electronically submit the registration form; and

(3) print, sign and fax to CSLN at 888-430-6907 a copy of the confidentiality statement.

(c) Once the insurance company registration information has been reviewed and the signed confidentiality statement has been received, secure access to the data base of child support obligors will be approved. The company will be notified via e-mail of access approval. This notice will include the user id that has been assigned, the web site address and basic instructions.

(d) Insurance companies are encouraged to query the CSLN data base of child support obligors as early as possible in the claims process, but not later than 30 days before a claim settlement if possible.

(e) The insurance company receives immediate notification of the status of the match.

(1) If there is no match, the insurance company is informed.

(2) If there is a positive match, the insurance company is informed and provided the basic match data.

(3) If there are multiple possible matches within one state, the insurance company is asked to call CSLN to identify the correct obligor.

(4) If there are multiple possible matches within more than one state, the insurance company is notified that CSLN will work with the insurance company and the affected states to determine the appropriate course of action.

(f) When an interactive match occurs, CSLN notifies the State child support enforcement agency of a match. The State child support agency will send a notice of child support lien (or, in the case of a worker's compensation claim, a wage withholding instrument) to the company.

§55.605.Protection from Liability of Insurance Company for Disclosure of Information.

(a) An insurance company that provides information or otherwise responds to a notice of child support lien or levy under Subchapter G, Chapter 157, or acts in good faith to comply with procedures established in the pilot program under this section 231.015 is not liable for those acts under any law to any person.

(b) The federal Social Security Act (42 USC 666(a)(17)(C)(ii)) provides that a financial institution shall not be liable under any federal or state law to any person for encumbering or surrendering any assets it holds in response to a notice of lien or levy issued by the state child support enforcement agency.

§55.606.Confidentiality and Security.

(a) The Title IV-D agency shall consider any information received from an insurance company as confidential. Such information shall be used or disclosed by the Child Support Division only for the purpose of collecting past-due child support or for other purposes as enumerated in subsection (c) of Family Code §231.108.

(b) In accordance with section 453 of the federal Social Security Act, any information provided by the Child Support Division to an insurance company, or its designated agent, for the purpose of conducting a data match may not be used by the institution or its agent for any other purpose and may not be disclosed to any person except to the extent necessary to conduct the data match. The insurance company or its agent shall destroy or erase all information provided to the company after completion of a data match. This subsection does not apply to data contained in a child support lien or other encumbering instrument received from the Child Support Division after the data match process.

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 24, 2003.

TRD-200300625

Rick Gilpin

Assistant Attorney General

Office of the Attorney General

Earliest possible date of adoption: March 9, 2003

For further information, please call: A.G. Younger, Agency Liaison, at (512) 463-2110


Part 8. TEXAS JUDICIAL COUNCIL

Chapter 173. INDIGENT DEFENSE GRANTS

Subchapter D. ADMINISTERING GRANTS

1 TAC §173.309

The Task Force on Indigent Defense (Task Force) is a permanent Standing Committee of Texas Judicial Council. The Task Force on Indigent Defense (Task Force) proposes an amendment to §173.309, concerning permitting the Task Force at its discretion to authorize extensions to grants awarded under the indigent defense grant program, rather than only at the request of a grantee county in accordance with §173.307(c)(3).

Chapter 173 establishes the guidelines for the administration of a new grant program for counties to improve indigent defense services. The proposed amendment will give the Task Force flexibility to extend grant periods to ensure that counties have sufficient time to expend grant funding previously awarded.

Ms. Glenna Rhea Bowman, Chief Financial Officer of the Office of Court Administration, has determined that for each year of the first five years the proposed amendment is in effect, enforcing or administering the section does not have foreseeable implications relating to cost or revenues of state or local government.

Ms. Bowman has determined that there will be no material economic costs to persons who are required to comply with the proposed amendment, nor does the proposed amendment have any anticipated adverse effect on small or micro-businesses.

Mr. Jim Bethke, Director of the Task Force, has also determined that for each of the first five-year period the proposed amendment is in effect the public benefit will be an improvement in the quality of indigent defense services because any grant period extensions that may be made under this proposed amendment will allow counties the opportunity to expend previously granted funds to improve their indigent defense systems.

Comments on the proposed amendment may be submitted in writing to Wesley Shackelford, Special Counsel, Task Force on Indigent Defense, P.O. Box 12066, Austin, Texas 78711-2066, or by fax to 512-475-3450 no later than 30 days from the date that these proposed rules are published in the Texas Register .

The amendment is proposed under the authority of Texas Government Code §71.062 (Technical Support; Grants), concerning the grant and aid program, that provides the Task Force authority to provide grants to assist counties to improve indigent defense practices in the state and to promote compliance with state law concerning indigent defense practices. The Task Force interprets Texas Government Code §71.062 to require the Task Force to adopt by rule the guidelines for administering the grant program.

No other statutes, articles, or codes are affected by the proposed amendment.

§173.309.Grant Termination.

(a) The grant will terminate at the end of the date specified in the grant award, unless an extension is granted in accordance with §173.307(c)(3) or the Task Force otherwise decides to modify the grant period.

(b) If a grantee wishes to terminate a grant in whole or in part before the end of the grant period, the grantee must notify the Task Force in writing. The Task Force or its designee will make arrangements with the grantee for the early termination of the grant.

(c) The Task Force may terminate any grant, in whole or in part, when:

(1) a grantee fails to comply with any term or condition of the grant or the grantee has failed to comply with any applicable rule;

(2) the grantee and the Director of the Task Force agree to do so;

(3) grant funds are no longer available; or

(4) conditions exist that make it unlikely that grant or program objectives will be accomplished.

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 17, 2003.

TRD-200300313

Wesley Shackelford

Special Counsel

Texas Judicial Council

Earliest possible date of adoption: March 9, 2003

For further information, please call: (512) 936-6994


Part 15. TEXAS HEALTH AND HUMAN SERVICES COMMISSION

Chapter 355. MEDICAID REIMBURSEMENT RATES

Subchapter G. TELEMEDICINE SERVICES AND OTHER COMMUNITY-BASED SERVICES

1 TAC §355.5902

The Texas Health and Human Services Commission (HHSC) proposes to amend §355.5902, concerning reimbursement methodology for primary home care and family care services, in its Medicaid Reimbursement Rates chapter. The purpose of the amendment is to modify the reimbursement methodology for Primary Home Care and Family Care (PHC/FC) Services to combine two cost areas into a single cost area for reimbursement payment determination.

The Texas Department of Human Services (DHS) is proposing related policy in its Chapter 47 in this issue of the Texas Register .

Don Green, Chief Financial Officer, 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. There will be no fiscal implications for local government as a result of enforcing or administering the section.

The estimated fiscal impact for the first five-year period the section is in effect is subject to the availability of funds in state fiscal years (SFY) 2004-2008. The total fiscal impact based on state and federal funding is estimated at $9,226,414 in SFY 2004; $10,003,049 in SFY 2005; $10,003,049 in SFY 2006; $10,003,049 in SFY 2007; and $10,003,049 in SFY 2008. Of the total, the impact on state funding is an estimated $4,088,168 in SFY 2004; $4,404,857 in SFY 2005; $4,404,857 in SFY 2006; $4,404,857 in SFY 2007; and $4,404,857 in SFY 2008. Of the total, the estimated federal cost is $5,138,246 in SFY 2004; $5,598,192 in SFY 2005; $5,598,192 in SFY 2006; $5,598,192 in SFY 2007; and $5,598,192 in SFY 2008.

Steve Lorenzen, Director, Rate Analysis, has determined that, for each year of the first five years the section is in effect, the public benefit anticipated as a result of enforcing the section will be that more providers will have their allowable costs covered by the unit rates for this program. There will be no adverse economic effect on small or micro businesses as a result of enforcing or administering the section, because the amendment ensures that more providers will have their allowable costs covered by the unit rates for this program. 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 Carolyn Pratt at (512) 685- 3127 in HHSC's Rate Analysis Department. 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 . For further information regarding the proposal or to make the proposal available for public review, contact local offices of DHS or Carolyn Pratt at (512) 685-3127 in Rate Analysis of HHSC.

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

The amendment is proposed under the Government Code, §531.033, which authorizes the commissioner of HHSC to adopt rules necessary to carry out the commission's duties, and §531.021(b), which establishes the commission as the agency responsible for adopting reasonable rules governing the determination of fees, charges, and rates for medical assistance payments under Chapter 32, Human Resources Code.

The amendment implements the Government Code, §531.033 and §531.021(b).

§355.5902.Reimbursement Methodology for Primary Home Care and Family Care Services.

(a) General requirements. [ For the completion and submittal of cost reports pertaining to providers' fiscal years ending in calendar year 1997 and subsequent years, providers must apply the information in this section. ] The Texas Health and Human Services Commission (HHSC) applies the general principles of cost determination as specified in §355.101 of this title (relating to Introduction).

(b) (No change.)

(c) Reimbursement determination. Reimbursement is determined in the following manner.

(1) Cost determination by cost area. Allowable costs are combined for Primary Home Care and Family Care into three [ four ] cost areas, after allocating payroll taxes to each salary line item on the cost report on a pro rata basis based on the portion of that salary line item to the amount of total salary expense and after applying employee benefits directly to the corresponding salary line item.

(A) Service support [ Field supervisors ] cost area. This includes field supervisors' salaries and [ , ] wages, benefits, and mileage reimbursement expenses. This also includes building, building equipment, and operation and maintenance costs; administration costs; and other service costs. Administration expenses equal to $0.18 per Priority 1 unit of service are allocated to Priority 1. The administration costs remaining after this allocation are summed with the other service support costs.

(B)-(C) (No change.)

[ (D) Building, administration, and other service cost areas. This includes building, building equipment, and operation and maintenance costs; administration costs; and other direct service costs. Administration expenses equal to $0.18 per Priority 1 unit of service are allocated to Priority 1. The administration costs remaining after this allocation are summed with the facility and the other service costs.]

(2) Recommended reimbursement by cost area. For the service support cost area [ areas ] described in paragraph (1)(A) [ and (D) ] of this subsection the following is calculated:

(A) (No change.)

(B) Projected cost per unit of service. To determine the projected cost per unit of service for each provider agency, the total projected allowable costs for the service support [ each ] cost area are divided by total units of service, including nonpriority services , [ and ] Priority 1 services , and STAR+PLUS services , in order to calculate the projected cost per unit of service [ for each cost area ].

(C) Projected cost arrays. All provider agencies' projected allowable costs per unit of service are rank ordered from low to high, along with each provider agency's corresponding total units of service [ for each cost area ].

(D) Recommended reimbursement for the service support [ each ] cost area [ component ]. The total units [ hours ] of service [ used to calculate each cost area component ] for each provider agency are summed until the median hour of service is reached. The corresponding projected expense is the weighted median cost component. The weighted median cost component [ for each cost area ] is multiplied by 1.044 to calculate the recommended reimbursement for the service support [ each ] cost area [ component ]. The service support cost area recommended reimbursement is limited, if necessary, to available appropriations.

(3)-(4) (No change.)

(d)-(g) (No change.)

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

Filed with the Office of the Secretary of State on January 27, 2003.

TRD-200300662

Steve Aragón

General Counsel

Texas Health and Human Services Commission

Earliest possible date of adoption: March 9, 2003

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