TITLE 40.SOCIAL SERVICES AND ASSISTANCE

Part 4. TEXAS COMMISSION FOR THE BLIND

Chapter 159. ADMINISTRATIVE RULES AND PROCEDURES

Subchapter E. PURCHASE OF GOODS AND SERVICES BY THE COMMISSION

40 TAC §159.107

The Texas Commission for the Blind adopts amended §159.107, concerning best value factors in the purchase of goods and services. The rule is adopted without changes to the proposed text as published in the November 22, 2002, issue of the Texas Register (27 TexReg 10909) and will not be republished.

The amended rule will serve as the Commission's rule on applying best value factors services if a proposed purchase is to be awarded on the basis of consideration of factors other than price and meeting specifications. The rule also clarifies that the Commission will comply with requirements in Government Code, §2155.144(e), which requires health and human services agencies to notify the state auditor and consult with and receive approval from the Health and Human Services Commission before considering factors other than price and meeting specifications when it acquires goods or services with a value that exceeds $100,000. The amended rule is consistent with rules adopted by the Health and Human Services Commission in 1 TAC, Part 15, Chapter 391.

No comments were received in response to the notice of the proposed amendment as published in the above-referenced issue of the Texas Register .

The rule as amended is adopted under Human Resources Code §91.011, which authorizes the Commission to adopt rules prescribing the policies and procedures followed by the Commission in the administration of its programs, and Government Code, §2155.144(g), which requires health and human service agencies to adopt rules and procedures for the acquisition of goods and services that are consistent with the rules of the Health and Human Services Commission.

The following statute is also affected by the rule: Government Code, Title 10, §2155.144.

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 11, 2003.

TRD-200300997

Terrell I. Murphy

Executive Director

Texas Commission for the Blind

Effective date: March 3, 2003

Proposal publication date: November 22, 2002

For further information, please call: (512) 377-0611


Chapter 162. CRISS COLE REHABILITATION CENTER

Subchapter A. GENERAL RULES

40 TAC §162.2

The Texas Commission for the Blind adopts §162.2, concerning referrals to Criss Cole Rehabilitation Center. The rule is adopted without changes to the proposed text as published in the November 22, 2002, issue of the Texas Register (27 TexReg 10910) and will not be republished.

The amended rule will serve as the Commission's rule on accepting referrals from other state rehabilitation agencies into the training programs at Criss Cole Rehabilitation Center when space is available.

No comments were received in response to the notice of the proposed amendment as published in the above-referenced issue of the Texas Register .

The rule as amended is adopted under Human Resources Code §91.011, which authorizes the Commission to adopt rules prescribing the policies and procedures followed by the Commission in the administration of its programs.

The amendment also affects §91.052, which authorizes the Commission to enter reciprocal agreements with other states to provide vocational rehabilitation for the residents of the states concerned.

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 11, 2003.

TRD-200300998

Terrell I. Murphy

Executive Director

Texas Commission for the Blind

Effective date: March 3, 2003

Proposal publication date: November 22, 2002

For further information, please call: (512) 377-0611


Chapter 167. BUSINESS ENTERPRISES OF TEXAS

40 TAC §167.9

The Texas Commission for the Blind adopts the amendment of §167.9 pertaining to set-aside fees in the operation of Business Enterprises of Texas. The amendment is adopted with changes to the proposed text published in the November 22, 2002, issue of the Texas Register (27 TexReg 10910). One technical change has been made to subsection (b)(5), to ensure that the language conforms to federal regulations. Federal regulations assign voting rights on the establishment and maintenance of retirement or pension funds, health insurance contributions, and provision for paid sick leave and vacation time to those BET managers assigned to and operating a facility. By definition (34CFR395, §395.1(b) and (aa)), the regulations exclude from voting those individuals licensed by BET but not operating a facility. Because the Commission uses the term "manager" instead of "vendor" in its program, this clarification is needed. The agency intends to propose additional changes to this chapter in the near future and will be revising its definitions and rules accordingly at that time to clearly differentiate between licensees and managers.

The rule as adopted establishes the Commission's system for reviewing the fiscal resources of the program. This will ensure that the collection of set-aside fees does not exceed amounts necessary to fund aspects of the program allowed by the Randolph-Sheppard Act. The amended rule also creates a system for involving the Elected Committee of Managers in potential annual changes.

No comments were received in response to the notice of the proposed amendment as published in the above-referenced issue of the Texas Register .

The amendment is adopted under Human Resources Code §94.012, which authorizes the Commission to promulgate rules for the administration of the program and §94.016, which authorizes the commission to administer the program in accordance with the provisions of the Randolph-Sheppard Act (20 U.S.C. Section 107 et seq.).

§167.9.Set-Aside Fees.

(a) Purpose. It is the policy of the Texas Commission for the Blind to require from managers the payment of a set-aside fee based on the monthly net proceeds of their BET facilities. The purpose of requiring such payment is:

(1) to promote to the greatest possible extent the concept of a manager being an independent business person;

(2) to cause BET to be to the greatest extent possible, with due regard to other considerations, self-supporting;

(3) to encourage and stimulate growth in BET; and

(4) to provide incentives for the increased employment opportunities for blind Texans.

(b) Use of funds. To the extent permitted or required by applicable laws, rules, and regulations, the funds collected as set-aside fees shall be used by the Commission for the following purposes:

(1) maintenance and replacement of equipment for use in BET;

(2) purchase of new equipment for use in BET;

(3) management services;

(4) assuring a fair minimum return to managers; and

(5) the establishment and maintenance of retirement or pension funds, health insurance contributions, and provision for paid sick leave and vacation time if it is so determined by a majority vote of managers assigned to a facility, after the Commission provides to each such manager information on all matters relevant to such proposed purposes.

(c) Method of computing net proceeds.

(1) Net proceeds is the amount remaining from the sale of merchandise of a BET facility, all vending machine income, and other income accruing to the manager from the facility after deducting the reasonable and necessary cost of such sale, but excluding set-aside charges required to be paid by the manager. Net sales are all sales, excluding sales tax.

(2) Costs of sales that may be deducted from net sales to calculate net proceeds in a reporting period shall be limited to:

(A) cost of merchandise sold;

(B) wages paid to employees;

(C) payroll taxes; and

(D) the following reasonable miscellaneous operating expenses that are directly related to the operation of the BET facility:

(i) discretionary expenses, not to exceed 1.5% of the monthly net sales, or $150, whichever is greater;

(ii) rent and utilities authorized in the permit or contract;

(iii) business taxes, licenses, and permits;

(iv) telecommunication services;

(v) liability, property damage, and fire insurance;

(vi) Worker's Compensation insurance;

(vii) employee group hospitalization/health insurance;

(viii) employee retirement contributions (the plans must be IRS-approved and not for the manager);

(ix) janitorial services, supplies, and equipment;

(x) bookkeeping and accounting services;

(xi) trash removal and disposal services;

(xii) service contracts on file with the Commission;

(xiii) legal fees directly related to the operation of the facility (legal fees directly or indirectly related to actions against governmental entities are not deductible);

(xiv) medical expenses directly related to accidents that occur to employees at the facility, not to exceed $500;

(xv) purchase of personally owned or leased equipment that has been approved by the Commission for placement in the facility;

(xvi) repairs and maintenance to personally owned or leased equipment that has been approved by the Commission to be placed within the facility;

(xvii) consumable office supplies; and

(xviii) exterminator/pest control services.

(3) All reports by managers shall be accompanied by such supporting documents as may be required by the Commission.

(d) Method of computing monthly set-aside fee. The monthly set-aside fee of each manager shall be a percentage of the amount that results from applying the schedule in paragraphs (1)-(5) of this subsection. The provisions relative to the percentage required to be paid as set-aside fees shall be reviewed by the Commission with the active participation of the ECM at least annually during the regular meeting of the governing board next following the end of the State of Texas fiscal year. The review shall be for the purpose of determining whether the percentage needs to be adjusted in order to meet the needs of the program. The governing board of the Commission and the ECM shall be provided with all relevant financial and other information concerning the financial requirements of the program no fewer than 60 days prior to any meeting of the Commission's governing board in which a change in the percentage is to be considered. For the period from the effective date of this amended rule until the Commission undertakes its first annual review of the set-aside fee, the percentage shall be 25 percent.

(1) On net proceeds of $1 to $999.99, the amount shall be 2% of the manager's net proceeds.

(2) On net proceeds of $1,000 to $1,499.99, the amount shall be 3% of the manager's net proceeds.

(3) On net proceeds of $1,500 to $1,999.99, the amount shall be 4% of the manager's net proceeds.

(4) On net proceeds of $2,000 to $5,999.99, the amount shall be $80 plus 18% of the manager's net proceeds over $2,000.

(5) On net proceeds of $6,000 or more, the amount shall be $800 plus 24% of the manager's net proceeds over $6,000.

(e) Payment of set-aside fee. The set-aside fee shall be submitted with the manager's monthly statement of facility operations. The BET director shall develop and implement procedures for the preparation and submittal of monthly statements.

(f) Adjustments to monthly set-aside fee.

(1) When a "single point of contact" is required under the provisions of §167.16 of this title, pertaining to establishing and closing facilities, the monthly set-aside payment for the contact manager shall be reduced by 3% for each manager represented.

(2) To encourage managers to hire individuals with significant disabilities, managers shall deduct from their set-aside payment up to 50% of the wages or salary paid to a blind or otherwise significantly disabled employee during any month up to an amount not to exceed 5% of the set-aside payment amount for that month. A manager may make this deduction for any number of employees who are individuals who are blind or otherwise significantly disabled so long as that deduction from the set-aside payment amount does not exceed 25% of the total set-aside payment due, or $1,250.00, whichever is less. The manager shall provide such documentation to the Commission as required by the Commission to verify such employment and the right to the reduction in set-aside fees. For the purposes of this paragraph, the term "blind or otherwise significantly disabled employee" does not include:

(A) the manager,

(B) a blind or otherwise significantly disabled person within the first degree of consanguinity or affinity to the manager, or

(C) a blind or otherwise significantly disabled person claimed as a dependent, either in whole or in part, on the manager's United States income tax return.

(3) Any adjustments provided for in paragraphs (1) and (2) of this subsection shall not apply for any month in which the set-aside fee is not paid in a timely manner.

(4) To encourage managers to promptly file their monthly statement of facility operations and pay their monthly set-aside fee, managers shall have their monthly set-aside fee increased by 5% if either their monthly statement or the monthly set-aside fee is not timely received by the Commission in accordance with BET procedures for their preparation and submittal. None of the terms of this rule shall ever be construed to create a contract to pay, as consideration for the use, forbearance, or detention of money, interest at a rate in excess of the maximum rate permitted by applicable laws. This adjustment to the set-aside fee is not imposed as interest, but if for any reason whatever this adjustment is considered to be interest, the Commission shall refund to the manager any and all amounts as shall be necessary to cause the "interest" paid to produce a rate equal to the maximum rate permitted by applicable laws.

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 11, 2003.

TRD-200300993

Terrell I. Murphy

Executive Director

Texas Commission for the Blind

Effective date: March 3, 2003

Proposal publication date: November 22, 2002

For further information, please call: (512) 377-0611


Chapter 171. MEMORANDA OF UNDERSTANDING

The Texas Commission for the Blind (TCB) adopts the repeal of §171.2, pertaining to Coordinated Services for Children and Youths, and the amendment of §171.3, pertaining to Transition Planning for Students Receiving Special Education. The repeal of §171.2 is adopted without changes to the proposed repeal as published in the November 22, 2002, issue of the Texas Register (27 TexReg 10911) and will not be republished. The amendment of §171.3 is also adopted without changes to the proposed amendment as published in the November 22, 2002, issue of the Texas Register (27 TexReg 10911) and will not be republished.

The repeal of §171.2 is adopted because the reason for its adoption no longer exists. The lead agency in the memorandum of understanding (MOU) changed in the last legislative session and the revised statutory language no longer requires the MOU to be adopted by rule. A new MOU has been signed by applicable agencies and is now posted on the Health and Human Services Commission's public website.

The proposed amendment to §171.3 pertaining to Transition Planning for Students Receiving Special Education is adopted to correct the cross-reference to the Texas Education Agency's rules, which contains the text of a new MOU between signatory agencies. The new MOU addresses the respective roles and responsibilities of participating agencies in the sharing of information about, and coordination of services to, eligible students with disabilities receiving transition services. The new MOU more clearly establishes the respective responsibilities of each agency for the provision of services necessary to prepare students enrolled in special education programs for a successful transition to life outside of the public school system.

No comments were received in response to the notice of the proposed repeal and amendment as published in the above-referenced issue of the Texas Register .

40 TAC §171.2

The repeal is adopted under Human Resources Code, §91.021, which authorizes the Commission to negotiate interagency agreements with other state agencies to provide services for individuals who have both a visual disability and another disabling condition.

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 11, 2003.

TRD-200300995

Terrell I. Murphy

Executive Director

Texas Commission for the Blind

Effective date: March 3, 2003

Proposal publication date: November 22, 2002

For further information, please call: (512) 377-0611


40 TAC §171.3

The amendment is adopted under Human Resources Code, §91.021, which authorizes the Commission to negotiate interagency agreements with other state agencies to provide services for individuals who have both a visual disability and another disabling condition. The amendment of §171.3 also affects Texas Education Code, §29.011.

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 11, 2003.

TRD-200300996

Terrell I. Murphy

Executive Director

Texas Commission for the Blind

Effective date: March 3, 2003

Proposal publication date: November 22, 2002

For further information, please call: (512) 377-0611