TITLE 40.SOCIAL SERVICES AND ASSISTANCE

Part 1. TEXAS DEPARTMENT OF HUMAN SERVICES

Chapter 3. TEXAS WORKS

Subchapter BB. CHANGES

40 TAC §3.2801

The Texas Department of Human Services (DHS) adopts an amendment to §3.2801, with changes to the proposed text published in the November 1, 2002, issue of the Texas Register (27 TexReg 10360).

The Farm Security and Rural Investment Act of 2002 (Public Law 107-171) amended Section 6(c)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2015(c)(1)) to give states an option to modify reporting requirements for the majority of food stamp households. Under this federal option, households are only required to report changes in the amount of their gross monthly income when it exceeds 130% of the Federal Poverty Income Limit. State agencies can only act on reported changes if the changes will increase the household's benefits. The only times the state agency can act on a reported change that decreases benefits are when the household voluntarily withdraws from the program, the agency receives a report of change that is considered verified upon receipt, or a change occurs in the household's Temporary Assistance for Needy Families grant. Additionally, the state agency must assign a certification period of six through 12 months to all households included in this new change reporting, which DHS refers to as "streamlined reporting."

Rather than using this new option as specified in the statute, DHS chose to implement a streamlined reporting policy, with waiver approval from the Food and Nutrition Service, that is similar to the policy specified in the federal option. DHS believes the waiver policy will be simpler for recipients and staff to understand and will result in fewer errors. DHS received approval of Waiver 2020074 on November 21, 2002, allowing the agency to reduce the reporting requirements for streamlined reporting households to report only changes in residence and when gross income exceeds 130% of the Federal Poverty Income Limit. The adopted amendment implements these streamlined reporting requirements.

DHS received no comments regarding adoption of the amendment. A public hearing was held during the comment period on November 18, 2002. No comments were received at this hearing.

DHS, however, has initiated two minor editorial changes to the text of §3.2801 to clarify and improve the accuracy of the section.

The amendment is adopted under the Human Resources Code, Chapters 31 and 33, which authorizes DHS to administer financial and nutritional assistance programs.

The amendment implements the Human Resources Code, §§31.001 - 31.081 and §§33.001 - 33.027.

§3.2801.Reporting Requirements.

(a) Changes that Temporary Assistance for Needy Families (TANF) clients must report include:

(1) source of income;

(2) changes in the amount of nonexempt income of any household member;

(3) changes in household composition;

(4) ownership of a licensed vehicle;

(5) available cash, stocks, bonds, or money in a bank or savings account if the total is $1000 or more;

(6) receipt of any lump sum payment or settlement;

(7) change of address;

(8) information related to the absent parent, such as change of address and job;

(9) change in school attendance of any child 16 years old or older;

(10) changes in private medical insurance coverage.

(b) Changes that food stamp clients must report include those stipulated in 7 Code of Federal Regulations §273.12(a)(1), except for the following.

(1) Reporting medical expenses. As directed by the United States Department of Agriculture, Food and Nutrition Service, households are not required to report changes in medical expenses during a certification period.

(2) Reporting earned income. The Texas Department of Human Services (DHS) requires households to report changes in earned income if the source, wage rate, or employment status changes, unless they meet the criteria in paragraph (3) of this subsection.

(3) Streamlined reporting requirements. Households that are identified by DHS as streamlined reporting households are only required to report a change:

(A) that results in household monthly gross income exceeding 130% of the Federal Poverty Income Limit for their household size; or

(B) in residence.

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

Filed with the Office of the Secretary of State on February 6, 2003.

TRD-200300916

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: March 19, 2003

Proposal publication date: November 1, 2002

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


Part 20. TEXAS WORKFORCE COMMISSION

Chapter 807. PROPRIETARY SCHOOLS

The Texas Workforce Commission (Commission) adopts amendments to Subchapter A, General Provisions, §807.2; Subchapter B, Certificates of Approval, §§807.13-807.14; Subchapter C, Financial Requirements, §807.32 and §807.35; Subchapter F, Instructors, §807.81 and §807.83; Subchapter G, Courses of Instruction, §807.92-807.93 and §807.101; Subchapter I, Advertising, §§807.122-807.123 and §807.125; Subchapter J, Admission, §807.141 and §807.146; Subchapter K, Progress Standards, §807.161; Subchapter L, Attendance Standards, §807.175; Subchapter N, Records, §807.211 and §807.213 of Chapter 807, Proprietary Schools without changes as published in the November 29, 2002 issue of the Texas Register (27 TexReg 11059). The text will not be republished.

Background: Effective January 1, 1972, the Texas legislature enacted the Texas Proprietary School Act to provide protection of students and to provide certification and regulation of proprietary schools. The Act was originally codified in Chapter 32 of the Texas Education Code, and was administered by the Texas Education Agency, Division of Proprietary Schools, Drivers Training, and Veterans Education.

In 1995, Senate Bill 1, the 74th Texas Legislature, re-codified Chapter 32 in Chapter 132, Texas Education Code, and required that the Texas Employment Commission assume the regulatory function of the State's system of proprietary schools. During the same legislative session, House Bill 1863 created the Texas Workforce Commission to assume the responsibilities of the Texas Employment Commission. Consequently, as of March 1, 1996, references in the law to the Texas Employment Commission mean the Texas Workforce Commission.

Through the Act and Proprietary School Rules, the Texas Workforce Commission Proprietary Schools Department licenses and regulates most private post-secondary career schools that offer vocational training or continuing education. The Department also investigates complaints about schools, monitors schools to ensure regulatory compliance, arranges for the disposition of students affected by a school closure and administers the Tuition Protection Fund to pay tuition refunds to students when a school closes. In carrying out its regulatory duties, the Proprietary Schools Department seeks to provide consumer protection for Texas students as well as ensure quality training of the labor force to meet the needs of Texas employers.

The purpose of the rule amendments is to address changes in the proprietary school industry from the time when the rules were last revised in August 1998. Since that time, methods to deliver education have evolved in a number of areas, particularly in the area of distance education. The Internet has created opportunities for new delivery techniques as well as provided new methods for advertising and the enrollment of students.

Additionally, some of the regulated proprietary schools have elected to become accredited, have signed participation agreements with U. S. Department of Education, or have made other elections that create oversight by agencies other than the Commission. As a result, there are areas of the rules that are addressed in the requirements of these other agencies. In some cases, the requirements of these other agencies unintentionally modified, made redundant or created unnecessary overlap in the Commission's regulation of proprietary schools.

The adopted amendments to the Proprietary School rules address these issues in order to remove unnecessary requirements and streamline processes in the regulation of Texas Proprietary Schools. These changes are consistent with the Governor's vision of limited and efficient State government.

Specifically, the reason and purpose of each amendment is described as follows:

In §807.2, the amendment clarifies that the rules, which address correspondence training, are intended to recognize all possible forms of distance education by adding references to, and definitions of, the two primary types of distance education: synchronous and asynchronous distance education.

In §807.13, the amendment ensures that the Commission is aware of agreements that may affect the financial stability and/or methods of operation of a school by requiring the disclosure of management agreements to the Commission.

In §807.14, the amendment allows schools more flexibility in delivering seminars to students at new or additional locations by removing restrictive wording.

In §807.32, the amendment reduces the annual reporting requirements for schools by recognizing the federal financial standard used by the U.S. Department of Education as an acceptable alternative to the current financial reporting requirements in the rule.

In §807.35, the amendment makes the requirements for a balance sheet consistent with the recently amended requirements of the Generally Accepted Accounting Principals (GAAP) by eliminating outdated language.

In §807.81, the amendment allows for the recognition of the experience of instructors in seasonal trades by accrediting experience gained on a seasonal basis as the equivalent of one year.

In §807.83, the amendment reduces paperwork and allows flexibility in evaluating the qualifications of instructors by modifying the application process for schools that are approved by an accrediting body recognized by the U.S. Secretary of Education and by allowing a variance to the general requirements, under certain conditions.

In §807.92, the amendment clarifies references to courses of instruction by removing ambiguous wording.

In §807.93, the amendment clarifies references to courses of instruction by removing ambiguous wording.

In §807.101, the amendment requires the Commission be notified if a course of instruction is not to be taught in English.

In §807.122, the amendment prevents exaggerated or misleading advertising by requiring written approval for the use of certain terms.

In §807.123, the amendment expands the current advertising limitations to cover Internet advertising, including the use of graphics.

In §807.125, the amendment ensures that students are aware of all entrance requirements by requiring the publication of the school's entrance requirements in the school catalog.

In §807.141, the amendment ensures that students are protected from changes in the academic requirements by allowing a continuously enrolled student to graduate under the academic requirements in effect when the student enrolled.

In §807.146, the amendment ensures that the students know the cost of their education by requiring a firm price be stated in the enrollment contract.

In §807.161, the amendment recognizes that court reporting students face unique challenges in speed-building classes and allows these students additional time to progress.

In §807.175, the amendment improves the provisions for student leaves of absence by allowing for two leaves of absence with the total number of days being dependent on the length of the program.

In §807.211, the amendment clarifies that the current Master Student Registration List (MSRL), if stored electronically, must be available in hard copy form for monitoring purposes.

In §807.213, the amendment removes the specific requirement to take attendance and allows for a school to use alternative means of calculating a student's last day of attendance for refund purposes.

The Commission's minimum, maximum, and median times for processing applications from the date the Commission received the initial applications to the date of the final decision using the Commission's performance in the past 12 months are respectively as follows: The Original Certificate of Approval processing period is a maximum of 36 days, a minimum of 2 days, and a median of 8 days. The Renewal Certificate of Approval processing period is a maximum of 69 days, a minimum of 2 days, and a median of 9 days. The Change of Owner processing period is a maximum of 53 days, a minimum of 3 days, and median of 13 days. The Representative processing period is a maximum of 186 days, a minimum of 2 days, and a median of 12 days. The Instructor processing period is a maximum of 321 days, a minimum of 2 days, and a median of 70 days. The Director processing period is a maximum of 78 days, a minimum of 2 days and a median of 8 days. The Director of Education processing period is a maximum of 44 days, a minimum of 2 days and a median of 18 days. The data used to compile the processing periods is based on a mail tracking system. Based on limitations of the mail tracking system, the following qualifiers are provided: processing periods of one day were excluded from the calculations; in an indeterminate number of cases, the data reflects total processing times irrespective of whether additional information was needed to complete the applications; and errors may exist due to processing and data base conversion complications. The processing periods provided in §807.6 were based on a decrease in department staffing and an increase in the number of applications needing to be processed.

Comments were received from Universal Technical Institute, ITT Technical Institute, the Texas Higher Education Coordinating Board, Alta Colleges and the association of the Career Colleges and Schools of Texas. Some commenters agreed with the proposed changes to the rules, some disagreed with the changes, some made recommendations for changes to the adopted language, and some offered comments and new language to sections of existing rules that the Commission did not propose to alter, modify or amend. For those sections that the Commission did not propose changes in its notice of proposed rule published November 29, 2002, the Commission does not accept any alterations or changes to existing Commission rules. The comment summaries and responses are as follows by section.

Comment: One commenter expressed support of the proposed rule revisions as published, without change, and also expressed appreciation for the spirit of cooperation that exists between the Career Colleges and Schools of Texas and the Commission. A second commenter also expressed support for most of the proposed changes, except for three of the provisions below, and stated that the Commission has, for the most part, successfully removed unnecessary requirements and streamlined processes in the regulation of proprietary schools.

Response: The Commission appreciates the positive comments and agrees that the proposed rules should be adopted without change. The Commission is also grateful for the collaborative efforts of the Career Colleges and Schools of Texas to improve the education opportunities of the citizens of Texas.

Comment: Concerning §807.16, one commenter suggested revising (a) to read: "If a school desires authorization to grant associate degrees, the school shall make application to the Coordinating Board" and deleting (a)(1) through (a)(4). The commenter also suggests deleting (b).

Response: The Commission submitted no changes to Section 807.16 in its Notice of Proposed Rule Amendments, published on November 29, 2002. Consequently, the Commission is unable to accept any alterations or changes to the existing section.

Comment: Concerning §807.52(2), one commenter stated that the current requirement that representatives shall "refer questions about financial aid ... to the appropriate school officials" was restrictive and impacted the credibility and ability of in-home representatives to answer questions.

Response: The Commission submitted no changes to Section 807.52(2) in its Notice of Proposed Rule Amendments, published on November 29, 2002. Consequently, the Commission is unable to accept any alterations or changes to the existing section.

Comment: Concerning §807.65, one commenter suggested deleting all but the first sentence of (a). The commenter also suggested deleting (b).

Response: The Commission submitted no changes to Section 807.65 in its Notice of Proposed Rule Amendments, published on November 29, 2002. Consequently, the Commission is unable to accept any alterations or changes to the existing section.

Comment: Concerning §807.103, one commenter suggested deleting the entire section.

Response: The Commission submitted no changes to Section 807.103 in its Notice of Proposed Rule Amendments, published on November 29, 2002. Consequently, the Commission is unable to accept any alterations or changes to the existing section.

Comment: Concerning §807.141(e), one commenter stated that the proposed change was only appropriate for short-term, occupational skill programs, not for associate degree level programs.

Response: The Commission disagrees with this comment and declines to alter its proposed language. When a student signs an enrollment agreement, they are contracting for certain approved training as detailed in the accompanying catalog. The Commission finds that continually enrolled students should have the option of graduating under the academic requirements in effect at the time of the student's enrollment, particularly since even associate degree programs are typically two years or less in length. While the proposed language provides the student with the right to graduate under the academic requirements stated at the time of enrollment, the proposed language does not prohibit the student from accepting changes to the program.

Comment: Concerning §807.146(a), two commenters expressed opposition to the change. One commenter felt that the proposed change was appropriate only for short-term programs and that it would unnecessarily constrain schools that offered longer programs by denying them the opportunity to adapt to inflation. The other commenter felt that the change would overextend the authority of TWC, constituted a restraint of trade, and would be grossly unfair. This commenter suggested changing the language to require notice to the student of the school's right to increase tuition with notice of the increase and the reason given a minimum of 45 days in advance.

Response: The Commission disagrees with the comments. When a student signs an enrollment agreement, as with any contract, they are entering into an agreement to receive a certain service. In this case, it is approved training in return for payment of a fee. The Commission believes that the student must have an accurate disclosure of the cost of the education in order to be a properly informed consumer. Furthermore, the Commission needs to know the exact cost in order to calculate refunds in accordance with the requirements of Section 132.061 of the Education Code. Moreover, the Commission does not propose to restrict tuition increases for new students, the provision merely prevents tuition changes to the existing contracts of currently enrolled students.

The Commission does not agree with the comment that this rule overextends the authority of the Commission or that it constitutes a restraint of trade. Section 132.021 of the Education Code requires that the Commission exercise control of the system of proprietary schools and adopt necessary policies and rules to administer the Proprietary School Act. The Commission does not regulate the amount of the tuition charged, it only requires notice of the amount charged.

Comment: Concerning § 807.213(a), one commenter suggested that while the proposed change is welcome, the Commission should completely eliminate the section and the requirement for attendance because the provision could be applied improperly.

Response: The Commission disagrees with the comment. The Commission recognizes the importance of the comments regarding application of this section. However, subsection (a) specifically outlines that schools are not required to take attendance. Rather, if the school does not, they must develop a Commission-approved alternative method that will accurately determine a student's last day attendance. The record keeping requirement is necessary for TWC to properly calculate possible refunds under Section 132.061 of the Education Code. The Commission finds that the attendance requirements in the proposed language are an important tool to provide consumer protection. Students with extremely poor attendance or that cease to attend will not benefit from the training for which they originally enrolled. This will also make certain that the student will not incur more debt than necessary to pay for the training they receive. Furthermore, record keeping will make students aware that attendance is an important part of training. Students may in turn attend school more frequently and increase the amount of training that they will receive.

Finally, subsections (b) and (c) spell out how a school, that is voluntarily taking attendance, meets the requirements of the provision. They clearly indicate how a school may comply and provide the requisite detail to ensure fair and uniform application of the policy.

Comment: Concerning Subchapter G, one commenter suggested that the Commission consider a rule establishing a minimum and maximum program length for certificate programs.

Response: The Commission submitted no changes to Subchapter G in its Notice of Proposed Rule Amendments, published on November 29, 2002. Consequently, the Commission is unable to accept any alterations or changes to the existing section.

Subchapter A. GENERAL PROVISIONS

40 TAC §807.2

The amendments are adopted under Texas Labor Code, Title 4, §302.002 and §302.021, which provides the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of the Commission and compliance with Texas Education Code, Chapter 132, Proprietary Schools and particularly §132.021, which authorizes the Commission to adopt rules necessary to carry out this chapter.

The amendments affect the Texas Labor Code, Title 4, §302.002 and §302.021, and Texas Education Code, Chapter 132, Proprietary Schools.

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

Filed with the Office of the Secretary of State on February 4, 2003.

TRD-200300855

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: February 24, 2003

Proposal publication date: November 29, 2002

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


Subchapter B. CERTIFICATES OF APPROVAL

40 TAC §807.13, §807.14

The amendments are adopted under Texas Labor Code, Title 4, §302.002 and §302.021, which provides the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of the Commission and compliance with Texas Education Code, Chapter 132, Proprietary Schools and particularly §132.021, which authorizes the Commission to adopt rules necessary to carry out this chapter.

The amendments affect the Texas Labor Code, Title 4, §302.002 and §302.021, and Texas Education Code, Chapter 132, Proprietary Schools.

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

Filed with the Office of the Secretary of State on February 4, 2003.

TRD-200300856

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: February 24, 2003

Proposal publication date: November 29, 2002

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


Subchapter C. FINANCIAL REQUIREMENTS

40 TAC §807.32, §807.35

The amendments are adopted under Texas Labor Code, Title 4, §302.002 and §302.021, which provides the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of the Commission and compliance with Texas Education Code, Chapter 132, Proprietary Schools and particularly §132.021, which authorizes the Commission to adopt rules necessary to carry out this chapter.

The amendments affect the Texas Labor Code, Title 4, §302.002 and §302.021, and Texas Education Code, Chapter 132, Proprietary Schools.

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

Filed with the Office of the Secretary of State on February 4, 2003.

TRD-200300857

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: February 24, 2003

Proposal publication date: November 29, 2002

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


Subchapter F. INSTRUCTORS

40 TAC §807.81, §807.83

The amendments are adopted under Texas Labor Code, Title 4, §302.002 and §302.021, which provides the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of the Commission and compliance with Texas Education Code, Chapter 132, Proprietary Schools and particularly §132.021, which authorizes the Commission to adopt rules necessary to carry out this chapter.

The amendments affect the Texas Labor Code, Title 4, §302.002 and §302.021, and Texas Education Code, Chapter 132, Proprietary Schools.

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

Filed with the Office of the Secretary of State on February 4, 2003.

TRD-200300858

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: February 24, 2003

Proposal publication date: November 29, 2002

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


Subchapter G. COURSES OF INSTRUCTION

40 TAC §§807.92, 807.93, 807.101

The amendments are adopted under Texas Labor Code, Title 4, §302.002 and §302.021, which provides the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of the Commission and compliance with Texas Education Code, Chapter 132, Proprietary Schools and particularly §132.021, which authorizes the Commission to adopt rules necessary to carry out this chapter.

The amendments affect the Texas Labor Code, Title 4, §302.002 and §302.021, and Texas Education Code, Chapter 132, Proprietary Schools.

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

Filed with the Office of the Secretary of State on February 4, 2003.

TRD-200300859

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: February 24, 2003

Proposal publication date: November 29, 2002

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


Subchapter I. ADVERTISING

40 TAC §§807.122, 807.123, 807.125

The amendments are adopted under Texas Labor Code, Title 4, §302.002 and §302.021, which provides the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of the Commission and compliance with Texas Education Code, Chapter 132, Proprietary Schools and particularly §132.021, which authorizes the Commission to adopt rules necessary to carry out this chapter.

The amendments affect the Texas Labor Code, Title 4, §302.002 and §302.021, and Texas Education Code, Chapter 132, Proprietary Schools.

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

Filed with the Office of the Secretary of State on February 4, 2003.

TRD-200300860

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: February 24, 2003

Proposal publication date: November 29, 2002

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


Subchapter J. ADMISSION

40 TAC §807.141, §807.146

The amendments are adopted under Texas Labor Code, Title 4, §302.002 and §302.021, which provides the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of the Commission and compliance with Texas Education Code, Chapter 132, Proprietary Schools and particularly §132.021, which authorizes the Commission to adopt rules necessary to carry out this chapter.

The amendments affect the Texas Labor Code, Title 4, §302.002 and §302.021, and Texas Education Code, Chapter 132, Proprietary Schools.

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

Filed with the Office of the Secretary of State on February 4, 2003.

TRD-200300863

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: February 24, 2003

Proposal publication date: November 29, 2002

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


Subchapter K. PROGRESS STANDARDS

40 TAC §807.161

The amendments are adopted under Texas Labor Code, Title 4, §302.002 and §302.021, which provides the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of the Commission and compliance with Texas Education Code, Chapter 132, Proprietary Schools and particularly §132.021, which authorizes the Commission to adopt rules necessary to carry out this chapter.

The amendments affect the Texas Labor Code, Title 4, §302.002 and §302.021, and Texas Education Code, Chapter 132, Proprietary Schools.

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

Filed with the Office of the Secretary of State on February 4, 2003.

TRD-200300864

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: February 24, 2003

Proposal publication date: November 29, 2002

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


Subchapter L. ATTENDANCE STANDARDS

40 TAC §807.175

The amendments are adopted under Texas Labor Code, Title 4, §302.002 and §302.021, which provides the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of the Commission and compliance with Texas Education Code, Chapter 132, Proprietary Schools and particularly §132.021, which authorizes the Commission to adopt rules necessary to carry out this chapter.

The amendments affect the Texas Labor Code, Title 4, §302.002 and §302.021, and Texas Education Code, Chapter 132, Proprietary Schools.

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

Filed with the Office of the Secretary of State on February 4, 2003.

TRD-200300865

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: February 24, 2003

Proposal publication date: November 29, 2002

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


Subchapter N. RECORDS

40 TAC §807.211, §807.213

The amendments are adopted under Texas Labor Code, Title 4, §302.002 and §302.021, which provides the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of the Commission and compliance with Texas Education Code, Chapter 132, Proprietary Schools and particularly §132.021, which authorizes the Commission to adopt rules necessary to carry out this chapter.

The amendments affect the Texas Labor Code, Title 4, §302.002 and §302.021, and Texas Education Code, Chapter 132, Proprietary Schools.

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

Filed with the Office of the Secretary of State on February 4, 2003.

TRD-200300861

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: February 24, 2003

Proposal publication date: November 29, 2002

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


Chapter 813. FOOD STAMP EMPLOYMENT AND TRAINING

The Texas Workforce Commission (Commission) adopts amendments to Chapter 813, Subchapter A, General Provisions, §813.1; Subchapter B, Access to Employment and Training Activities and Support Services, §§813.11-813.12; Subchapter E, Support Services for Participants, §813.41; and Subchapter F, Complaints and Appeals, §§813.52-813.53; without changes as published in the December 13, 2002 issue of the Texas Register (27 TexReg 11719). The text will not be republished. New §813.13 of Subchapter B, §813.22 of Subchapter C and §§813.31-813.32 of Subchapter D are adopted with changes and will be republished.

Background: On May 13, 2002, the Farm Security and Rural Investment Act of 2002 (Farm Bill) was signed into law. The Farm Bill significantly alters the way Food Stamp Employment and Training (E&T) funds may be expended. Amendments to the Commission's current Food Stamp E&T rules are required to conform to changes in federal law.

In addition, the U.S. Department of Agriculture issued final regulations on June 19, 2002. These regulations provide additional parameters for the implementation of Food Stamp E&T services. Specifically, they provide states with the flexibility to include job search activities as a part of other allowable component activities. This results in Able Bodied Adults without Dependents (ABAWDs) being able to participate in certain job search activities for more than the current four-week limitation.

Amendments align the Food Stamp E&T services more closely with Choices services and the Food Stamp E&T Federal Fiscal Year 2003 (FFY'03) State Plan of Operations, including changes to the length of time mandatory work registrants may be in job readiness and job search activities.

Clarification regarding the calculation of hours of participation in workfare is also intended. The new language clarifies that the household coupon allotment must be divided by the number of ABAWDs who reside in that household to ensure compliance with the Fair Labor Standards Act.

More specifically, the purposes of the rule changes are to address the following issues.

Subchapter A, Section 813.1 contains a technical change.

Subchapter B sets out provisions relating to Access to Employment and Training Activities and Support Services. Section 813.11 sets out Board responsibilities regarding access to E&T Activities and Support Services In §813.11, the language in the rules specifies the Board's requirement to ensure outreach of all ABAWDs within 10 days from receiving the referral from the Texas Department of Human Services (TDHS). This 10-day requirement is currently contained in the Board's contract with TWC. The Commission is adding the language to heighten the importance of outreaching ABAWDs in a timely manner and to ensure that the Commission complies with its federal requirement to serve all ABAWDs. This addition will illustrate the Commission's policy to ensure that TWC is providing focus on the need to timely meet our requirement to serve all ABAWDs. In §813.12 changes are proposed to specify the hours of participation in the rule.

The Commission proposes rule changes to require mandatory work registrants to participate for "at least a minimum weekly average of thirty hours, within the restrictions outlined in §813.13."

In new §813.12 (b), (c), and (d) language is added to clarify that FLSA provisions applicable to Choices activities also apply to FSE&T services. In (b) the FLSA language is added to clarify that the activities referenced in 813.12(a)(2) shall comply with the FLSA. In (c) the language makes clear that there shall be no displacement of current workers or impairment of existing contracts for services or collective bargaining agreements in the implementation of FSE&T services. In (c) language is added to make clear that the Boards may use the Eligible Training Provider Certification System (ETPS) and Individual Training Accounts (ITA) systems as described in 40 TAC Chapter 841 to provide FSE&T services.

In §813.13 the language is added to specify the special provisions regarding penalties for noncompliance as they relate to the hours requirements as specified in §813.12(a). A technical change is made to §813.13(2) by moving this section to §813.32(b) for better organization and clarity of the rules.

Subchapter C sets out Expenditure of Funds. Section 813.22 states what funds are designated for able-bodied adults without dependents (ABAWDs). In §813.22(1), the language is amended to implement the change in federal law that removed the earmark requiring that 80 percent of the federal funds are spent on services for ABAWDs. The amendment provides the Boards with the flexibility to use all of the federal funds on all mandatory work registrants. In §813.22(3), the language is eliminated following the removal of the federal requirement to pay for participant expenses over $25 with State General Revenue funds. The Commission is amending the current rules to allow Boards to use 50/50 funds to pay for the total cost of participant expense instead of being limited to $25. A technical change is made to §813.22(2) for clarity of the rules.

Subchapter D sets out the Allowable Activities. Section 813.31 sets out the allowable activities for all mandatory work registrants. In §813.31(B)(i)-(ii), the language is amended to modify the job search requirements so the job search time period for both ABAWDs and General Population participants, more closely parallel job search time limits in Choices. The time limits are proposed as four (4) weeks consecutive, six (6) weeks in a year for the General Population (non-ABAWDs); and four (4) weeks for ABAWDs. In § 813.31(B)(iii), new language is added to provide an exemption to the job search limitations for Project Re-Integration of Offenders (Project RIO) participants who are FSE&T eligible. The reason for the exemption is based on the multi-agency efforts to realize state budgetary savings by recognizing the financial and economic benefits of connecting Project RIO Job Seekers with employment and training services that address their barriers to employment. Project RIO participants who are FSE&T eligible will either be classified as ABAWDs or part of the General Population. Project RIO participants will not be subject to the four week consecutive, six week limitation applied to the General Population. ABAWDS who are Project RIO participants may receive their first four weeks of job search through FSE&T Any additional weeks of job search shall be provided under Project RIO. This language is added in order to recognize the unique characteristics of the Project RIO population, and to ensure an adequate opportunity is provided to connect these individuals with employment. Additionally, the Commission recognizes that by exercising authority in the federal and state statutes applicable to FSE&T to provide for an exemption to the job search four or six week limitation, the goals of the FSE&T and Project RIO will be furthered. In §813.31(B)( iv), the language is amended to implement flexibility provided by federal Food Stamp E&T regulations issued on June 19, 2002 which allow certain elements of job search and job search training to be provided as a part of other allowable component activities as long as they comprise less than half of the total required time spent in the component. This policy will allow ABAWDs to continue receiving a limited amount of assistance obtaining employment beyond their four-week federal limitation on stand-alone job search. Section 813.31(2) sets out requirements for vocational training. In §813.31(2)(C) language is amended to clarify that vocational educational training should be employer driven and should be provided if there is an expectation of employment upon completion of the training. This mirrors requirements for vocational educational training in the Choices rules and assists in providing similar definitions for activities funded with multiple funding sources. Technical amendments are made to § 813.31(3) regarding requirements for non-vocational education.

Technical changes are made to §813.31(1)(B) and (3)(A) regarding punctuation.

Section 813.32 sets out the activities for all E&T mandatory work registrants. In §813.32(a)(4), the language is amended to ensure that the rules clearly reflect the number of hours that an ABAWD may be required to participate in workfare. The Commission is amending the current rules to clarify how workfare hours are assigned when two or more ABAWDs reside in the same household. Currently, the rules state that ABAWDs will be assigned to workfare job sites for the number of hours per month equal to their household food stamp allotment amount divided by the minimum wage. Clarification is needed to state that if multiple ABAWDs reside in a food stamp household, then the household's food stamp allotment is divided among all such ABAWDs in the household. A technical change is made to §813.32 by moving §813.13(2) regarding unsubsidized employment to §813.32(b) for better organization and clarity of the rules.

Subchapter E sets out Support Services for Participants, and Subchapter F sets out processes for Complaints and Appeals. Technical amendments were made in these subchapters to reflect the use of term 'mandatory work registrant' where appropriate.

History: The Food Stamp E&T services assist food stamp recipients who are not eligible for Temporary Assistance for Needy Families cash assistance to become self-sufficient through participation in employment, job readiness, education, and training activities and through work experience. Services encompass job search and job readiness classes, basic skills training, workforce and vocational training, and support services that include transportation and child care. The Commission provides guidance to the Boards through technical assistance and interpretation of federal policies regarding these services. The Food Stamp Act of 1977 requires recipients of food stamp assistance who are (non-exempt) adults at least 16 but less than 60 years of age, and that are referred by TDHS, to register for work and take part in E&T activities and support services. Failure to comply with these requirements may result in disqualification from the receipt of Food Stamp benefits. The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 requires able-bodied food stamp recipients at least 18 but less than 50 years of age with no dependent children (ABAWDs) to work or participate in specific activities in order to receive Food Stamp benefits. Failure of ABAWDs to comply with these federal requirements will limit their assistance to three out of thirty-six (36) months.

The Farm Bill simplified the funding of FSE&T support (participant) services. In the past, support services were funded with 50% state and 50% federal funds for participant costs (up to $25 a month) and with 100% state funds (for participant costs over $25 a month). Under the revised law, FSE&T funded support services may only be funded with 50% state/50% federal funds. Boards must not use 100% federal funds to pay for FSE&T support services. The E&T activities applicable to mandatory work registrants and ABAWDS are listed in §§813.31 and 813.32 of the rules respectively and referenced in the State Plan filed with the United States Department of Agriculture (State Plan). The 50/50 funds may be used for E&T activities and support services as listed in §813.41 and the State Plan such as child care, transportation, and other expenses to assist participants in E&T activities with becoming self sufficient.

An additional purpose of the rule changes related to Food Stamp E&T activities and support services is to facilitate the maintenance and continuous improvement of the One-Stop Service Delivery Network as established in Texas Government Code, Chapter 2308, and Texas Labor Code, Chapters 301 and 302. The amendments provide the Boards with additional flexibility to more fully integrate Food Stamp E&T into the One-Stop Service Delivery Network. As part of the network, the goals of Food Stamp E&T activities and support services are consistent with and reflective of the Workforce Investment Act (WIA) one-stop principles and the principles of Texas' vision. The WIA principles are: streamlining services, empowering individuals, universal access, increased accountability, a strong role for Boards and the private sector, and state and local flexibility. The mission of the Texas Workforce Commission is to promote and support a workforce system that offers employers, individuals and communities the opportunity to achieve and sustain economic prosperity. Connecting individuals receiving Food Stamp assistance with employment, training and education helps the individuals become independent of public assistance and responds to the need of employers for a skilled workforce.

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

Coordination with Stakeholders: Prior to proposing these rule amendments, the Commission circulated a policy concept paper outlining the changes to the Board chairs, members and executive directors; the WLT Policy Committee, the Texas Department of Human Services, the Texas Health and Human Services Commission, and other stakeholders. In addition, the Commission, during a conference call with the Board executive directors, reviewed the policy concept paper and requested feedback on the draft policy changes. One Board provided feedback and indicated support for the changes.

One comment was received during the comment period from an individual that recommended maximizing state general revenue savings by coordinating Project RIO employment and training with the FSE&T funded employment and training services. The commenter did not state whether he was for or against the rules. The commenter stated that coordinating the funding sources would result in leveraging the return on state general revenue dollars by permitting the state to draw down more federal funds for Project RIO employment and training services through the FS E&T matching funds provisions.

Response: The Commission agrees with the comment and has amended the rules as follows to coordinate the Project RIO employment and training services with the FS E&T services. Furthermore, the Commission recognizes the needs of Project RIO participants to utilize the job search services for a period longer than the 4 or 6 weeks, the rule is amended to exempt general population Project RIO participants from the 4 or 6 week job search limitation. The exemption to the 4 or 6 week job search limitation is made with the intent that the Project RIO job seekers complete the job search at the earliest possible time to secure appropriate employment. ABAWD Project RIO participants may receive their first four weeks of job search through FSE&T. Any subsequent weeks of job search must be provided under Project RIO. The Commission also intends that Project RIO participants will be able to combine other services available to assist the participant in securing appropriate employment. Such services may include other FS E&T component activities and other one-stop services such as WIA Youth-funded education and training activities to obtain GEDs and other basic skills for securing appropriate employment.

For information about the Commission, including services for employers and workers, please visit our web page at www.texasworkforce.org.

Subchapter A. GENERAL PROVISIONS

40 TAC §813.1

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

Texas Labor Code, Title 4 and particularly Chapter 301 and Chapter 302 will be affected by the amendments as well as Texas Human Resources Code, Chapter 33 regarding nutrition assistance.

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

Filed with the Office of the Secretary of State on February 6, 2003.

TRD-200300909

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: February 26, 2003

Proposal publication date: December 13, 2002

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


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

40 TAC §813.11, §813.12

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

Texas Labor Code, Title 4 and particularly Chapter 301 and Chapter 302 will be affected by the amendments as well as Texas Human Resources Code, Chapter 33 regarding nutrition assistance.

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

Filed with the Office of the Secretary of State on February 6, 2003.

TRD-200300910

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: February 26, 2003

Proposal publication date: December 13, 2002

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


40 TAC §813.13

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

Texas Labor Code, Title 4 and particularly Chapter 301 and Chapter 302 will be affected by the amendments as well as Texas Human Resources Code, Chapter 33 regarding nutrition assistance.

§813.13.Special Provisions Regarding Penalties for Noncompliance.

General population mandatory work registrants who are scheduled to participate more than 120 hours per month may not be penalized for nonparticipation after 120 hours have been reached, as described in the Food Stamp Act, 7 U.S.C., 2015, §6 (d)(1)(F)(ii). The 120 hours include hours in all E&T activities, including any hours worked for compensation, either paid or unpaid.

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

Filed with the Office of the Secretary of State on February 6, 2003.

TRD-200300911

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: February 26, 2003

Proposal publication date: December 13, 2002

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


Subchapter C. EXPENDITURE OF FUNDS

40 TAC §813.22

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

Texas Labor Code, Title 4 and particularly Chapter 301 and Chapter 302 will be affected by the amendments as well as Texas Human Resources Code, Chapter 33 regarding nutrition assistance.

§813.22.Use of Funds.

Boards shall ensure that the following funding provisions are followed:

(1) Regarding the 100% federal E&T grant (100% funds) and the 50% federal and 50% state E&T grant (50/50 funds), federal E&T grant funds shall be expended on E&T activities for mandatory work registrants to participate in E&T activities listed in §813.31 and §813.32 of this chapter.

(2) Food Stamp E&T funded support services, listed in §813.41 of this title, may only be funded with 50/50 funds and not 100% funds.

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

Filed with the Office of the Secretary of State on February 6, 2003.

TRD-200300912

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: February 26, 2003

Proposal publication date: December 13, 2002

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


Subchapter D. ALLOWABLE ACTIVITIES

40 TAC §813.31, §813.32

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

Texas Labor Code, Title 4 and particularly Chapter 301 and Chapter 302 will be affected by the amendments as well as Texas Human Resources Code, Chapter 33 regarding nutrition assistance.

§813.31.Activities for Any E&T Mandatory Work Registrants.

The following activities may be provided for any E&T mandatory work registrants, which include both General Population and ABAWDs, subject to the limitations specified in §813.32 of this subchapter:

(1) job search services that shall:

(A) incorporate job readiness, job search training, directed job search, and group job search, and may include the following:

(i) job skills assessment;

(ii) counseling;

(iii) job search skills training;

(iv) information on available jobs;

(v) occupational exploration, including information on local emerging and demand occupations;

(vi) interviewing skills and practice interviews;

(vii) assistance with applications and resumes;

(viii) job fairs;

(ix) life skills; or

(x) guidance and motivation for development of positive work behaviors necessary for the labor market;

(B) are limited in the number of weeks a mandatory work registrant can spend as follows:

(i) ABAWD mandatory work registrants may not be enrolled for more than 4 weeks, and the job search activity must be provided in conjunction with the workfare component, as described in §813.32(4)(D) of this subchapter;

(ii) General Population mandatory work registrants may not be enrolled:

(I) for more than 4 weeks of consecutive activity under paragraph (1) job search services;

(II) for more than 6 weeks of total activity in a federal fiscal year;

(iii) Project Re-Integration of Offenders (Project RIO) participants are exempt from the job search limitations outlined in §813.31(1)(B)(i)-(ii): and

(iv) Job search, when offered as part of other E&T program components, is allowed for more time than the limitations outlined in clauses (1)(B)(i) and (ii) if the job search activities comprise less than half of the required time spent in other components.

(2) vocational training that shall:

(A) relate to the types of jobs available in the labor market;

(B) be consistent with employment goals identified in the family employment plan, when possible; and

(C) be provided only if there is an expectation that employment will be secured upon completion of the training.

(3) non-vocational education that shall increase employability, such as:

(A) enrollment and satisfactory attendance in:

(i) a secondary school; or

(ii) a course of study leading to a high school diploma or a certificate of general equivalence;

(B) basic skills and literacy;

(C) English proficiency; or

(D) postsecondary education, leading to a degree or certificate awarded by a training facility, proprietary school, or other educational institution that prepares individuals for employment in current and emerging occupations that do not require baccalaureate or advanced degrees;

(4) work experience, as defined by the Workforce Investment Act in 20 CFR, Part 652 et al., for mandatory work registrants who need assistance in becoming accustomed to basic work skills and shall:

(A) occur in the workplace for a limited period of time;

(B) be made in either the private for-profit, the nonprofit, or the public sectors; and

(C) be paid or unpaid;

(5) unsubsidized employment; or

(6) other activities approved in the current Food Stamp Employment and Training State Plan.

§813.32.E&T Activities for ABAWDs.

(a) Boards shall ensure that E&T activities for ABAWDs are limited to participating in the following:

(1) Trade Act of 1974, as amended by the Trade Act of 2002, services or activities;

(2) Workforce Investment Act activities (29 U.S.C. 2801, et seq. );

(3) education and training, which may include:

(A) vocational training as described in §813.31(a)(2) of this subchapter, or

(B) non-vocational education as described in §813.31(a)(3) of this subchapter; and

(4) workfare activities that shall:

(A) be designed to improve the employability of ABAWDs through actual employment experience or training, or both;

(B) be unpaid job assignments based in the public or private nonprofit sectors;

(C) have hourly requirements based on the ABAWD's monthly household food stamp allotment divided by the number of ABAWDs in the food stamp household, as provided by the Department of Human Services and then divided by the federal minimum wage; and

(D) include a four-week job search period prior to placement.

(b) ABAWDs who are referred to a Workforce Center as a mandatory work registrant and subsequently become engaged in unsubsidized employment for at least 20 hours per week are exempt from E&T services, as described in 7 CFR §273.24, and must be referred to the Department of Human Services.

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

Filed with the Office of the Secretary of State on February 6, 2003.

TRD-200300913

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: February 26, 2003

Proposal publication date: December 13, 2002

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


Subchapter E. SUPPORT SERVICES FOR PARTICIPANTS

40 TAC §813.41

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

Texas Labor Code, Title 4 and particularly Chapter 301 and Chapter 302 will be affected by the amendments as well as Texas Human Resources Code, Chapter 33 regarding nutrition assistance.

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

Filed with the Office of the Secretary of State on February 6, 2003.

TRD-200300914

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: February 26, 2003

Proposal publication date: December 13, 2002

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


Subchapter F. COMPLAINTS AND APPEALS

40 TAC §813.52, §813.53

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

Texas Labor Code, Title 4 and particularly Chapter 301 and Chapter 302 will be affected by the amendments as well as Texas Human Resources Code, Chapter 33 regarding nutrition assistance.

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

Filed with the Office of the Secretary of State on February 6, 2003.

TRD-200300915

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: February 26, 2003

Proposal publication date: December 13, 2002

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