TITLE 40.SOCIAL SERVICES AND ASSISTANCE

Part 1. TEXAS DEPARTMENT OF HUMAN SERVICES

Chapter 39. COMMUNITY ALZHEIMER'S RESOURCES AND EDUCATION (CARE) PROGRAM

40 TAC §§39.1, 39.2, 39.4, 39.6, 39.8, 39.10, 39.12, 39.14, 39.16

The Texas Department of Human Services (DHS) adopts new §§39.1, 39.2, 39.4, 39.6, 39.8, 39.10, 39.12, 39.14, and 39.16 in its new Community Alzheimer's Resources and Education (CARE) Program chapter. DHS adopts new §39.1 with changes to the proposed text published in the November 1, 2002, issue of the Texas Register (27 TexReg 10361). DHS adopts new §§39.2, 39.4, 39.6, 39.8, 39.10, 39.12, 39.14, and 39.16 without changes to the proposed text.

Justification for the new chapter is to establish rules for current practices in the CARE Program, which was established as a pilot program for the treatment of Alzheimer's patients in 1998 at the direction of the 75th Legislature.

DHS received no comments regarding adoption of the new sections. DHS, however, has initiated a minor change to the text of §39.1 to clarify the accuracy of the section.

The new sections are adopted under the Human Resources Code, Chapters 22 and 32, which authorizes DHS to administer public and medical assistance programs, and under the Government Code, §531.021, which provides the Texas Health and Human Services Commission with the authority to administer federal medical assistance funds.

The new sections implement the Human Resources Code, §§22.0001-22.038 and §§32.001-32.053.

§39.1.Definitions.

The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise.

(1) AD--Alzheimer's disease.

(2) CARE Program--The Community Alzheimer's Resources and Education Program that serves persons with AD and related dementia and their caregivers.

(3) CARE group--Representatives of participating state agencies and community entities concerned with caring for persons with AD who help secure access or available services, develop service plans, and educate and advocate for persons with AD and their caregivers. The number of members in a CARE group is not limited.

(4) CARE site--A location where CARE services are coordinated under the supervision of CARE staff.

(5) CARE staff--The persons who manage and operate the CARE Program at each site.

(6) Caregiver--The person who provides or supervises the care of a person with AD or related dementia.

(7) Client--The person with AD or a related dementia. A diagnosis of AD is not needed for information and referral or an in-home assessment. A diagnosis of AD or a related dementia is required before receiving CARE-contracted services.

(8) Contracted services--Services provided to a client who has been diagnosed with AD or a related dementia, or provided to the client's caregiver to enable the client to live in the home for a longer period of time. Services may include:

(A) respite (adult day, in-home, out-of-home);

(B) transportation;

(C) minor home safety modification;

(D) supplies;

(E) personal companion and homemaker services;

(F) home health;

(G) emergency needs; and

(H) identification registration.

(9) DHS--The Texas Department of Human Services.

(10) Emergency circumstances--Temporary situations where:

(A) the client needs supervision and/or care and is without any support services; or

(B) the usual caregiver is unable to care for the client and the client will be without assistance if CARE services are not put into place.

(11) In-home assessment--A CARE staff member (or employee of a home health agency) visits the client's home to assess the living situation and identify client needs.

(12) Information and referral--CARE staff give AD education and information to clients, such as information concerning the symptoms, diagnosis, and current research of AD, with referral to possible assistance available in the community.

(13) Interest list--A list, in chronological order, of persons who have applied for and may qualify for assistance through the CARE Program.

(14) PRUCOL--Permanently residing under color of law. Applies to individuals who entered the United States before January 1, 1972, and who may be eligible for permanent residence at the discretion of the attorney general, and any alien who is living in the United States indefinitely with the knowledge and permission of the Immigration and Naturalization Service.

(15) Service plan--The description of services for a client, including the agency or organization responsible for providing each service.

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 January 6, 2003.

TRD-200300029

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: January 26, 2003

Proposal publication date: November 1, 2002

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


Chapter 72. MEMORANDA OF UNDERSTANDING WITH OTHER STATE AGENCIES

Subchapter A. MEMORANDA OF UNDERSTANDING FOR LONG-TERM CARE

40 TAC §72.104

The Texas Department of Human Services (DHS) adopts new §72.104 with changes to the proposed text published in the July 26, 2002, issue of the Texas Register (27 TexReg 6670).

Justification for the new section is to implement provisions of the Human Resources Code, §22.038, authorized by the 77th Texas legislature, which calls for DHS, the Texas Department of Mental Health and Mental Retardation (TDMHMR), and the Texas Department of Protective and Regulatory Services (PRS) to adopt a joint Memorandum of Understanding (MOU) by rule. The MOU will facilitate the coordination and implementation of a pilot program, subject to availability of funds, required by the Human Resources Code, §22.037. The pilot program is intended to provide opportunities for persons with disabilities to move out of nursing facilities into community-based settings. The MOU defines the responsibilities of each agency for implementing the pilot program.

TDMHMR received two written comments from the parent/guardian of a resident of a state mental retardation facility (state MR facility), Garland; and from the Parent Association for the Retarded of Texas, Austin. DHS collaborated with TDMHMR and PRS in preparing the responses. A summary of the comments and DHS's responses follow.

Comment: Concerning §72.104(b)(1), (2)(A), and (4), two commenters questioned who will determine what constitutes being "inappropriately placed in an institution."

Response: The person who meets medical necessity or the person's legally authorized representative, in conjunction with the treatment team, identifies who is a candidate for community-based alternatives. Federal laws and regulations describe the criteria that permit a person to be admitted to and remain in a nursing facility for Medicaid services. If a person meets that criteria but moves to a community-based alternative care setting, the decision to do so is made by the person, the person's legally authorized representative (LAR), or a surrogate decision maker.

Comment: Two commenters stated that §72.104(b)(2)(B) should be revised to add the phrase "or legally authorized representative" to specify that either the person or the person's LAR makes a decision regarding a long-term care placement.

Response: DHS responds that the proposed MOU text faithfully follows the text of the statute authorizing the pilot and declines to make the requested revision.

Comment: Concerning references in §72.104(b)(3) and (4) to "community-based organizations," two commenters stated that the official policy of community-based organizations such as The Arc of Texas, Advocacy, Inc., Texas Council for Developmental Disabilities, and The Disability Policy Consortium is that institutional placement is never appropriate. The commenters stated that a "transition case manager" provided by one of these organizations would have the same attitude. The commenters further stated that a community-based organization to whom a grant is awarded under the terms of the MOU to identify persons who may inappropriately reside in nursing facilities must advocate for a full array of residential services, including state MR facilities.

Response: The organizations named by the commenters are not the recipients of the grants authorized by the Human Resources Code, §22.037. In addition, §22.037, which requires the implementation of the pilot relocation program, specifies that the "transition case manager" will assist a person with a disability who resides in a nursing facility to transition to a "community-based alternative care setting" if the person or the LAR decides that the transition should occur. Therefore, advocating for admission to a state mental retardation facility would be counter to the statutory directive. DHS declines to make the requested revision.

Comment: Concerning §72.104(c)(1)(A)(i), two commenters stated that DHS must include a requirement that all residential services, including state mental retardation facilities, be included in the full array of services offered to a person with mental retardation or the person's LAR.

Response: DHS responds, again, that the Human Resources Code, §22.037, requires that the pilot relocation program address "community-based alternative care settings" for persons residing in nursing facilities. State mental retardation facilities do not fit that description. DHS does note that subsection (b)(3)(B) specifies that a transition case manager will coordinate with the local mental health or mental retardation authority (MHMRA) when a nursing facility resident who wishes to make a transition from the nursing facility to a community-based alternative care setting requires mental retardation or mental health services.

Comment: Also concerning §72.104(c)(1)(A)(i), the commenters stated that the phrase "nursing facility residents/their families" should be revised to include a reference to LARs.

Response: DHS and TDMHMR agree with this comment and revised the language accordingly.

Comment: Two commenters expressed their agreement with the reference to "legally authorized representative" in §72.104(c)(1)(A)(ii) and stated that the phrase needs to be used throughout the section.

Response: DHS acknowledges the commenters' approval and notes that the phrase is used in the section where appropriate.

Comment: Two commenters stated that §72.104(c)(1)(C) must be revised to require DHS community awareness and relocation contract staff not to talk to a nursing facility resident who has an LAR unless the LAR gives permission.

Response: Surrogate decision makers, who in some cases are the LAR, do not have the authority to bar staff from talking to the resident. Guardians may be able to place restrictions on visitors depending on the authority granted to the guardian. DHS declines to make the requested revision.

Comment: Two commenters stated that the description of persons DHS is required in §72.104(c)(2)(A) to provide to a DHS contractor should not be a list of names.

Response: Only persons who have expressed an interest in community placement are referred to the relocation specialists. The relocation specialist then explores options with the resident or the resident's LAR.

Comment: Concerning §72.104(c)(3), two commenters stated that before the Texas Department of Protective and Regulatory Services (PRS) identifies for DHS those PRS clients residing in nursing facilities who are appropriate for transition into community-based living, PRS must first ask the individual or LAR if such transition is desired.

Response: DHS responds that PRS is the LAR for its clients who reside in nursing facilities and declines to make the requested revision.

Comment: Two commenters stated that the requirement in §72.104(d)(2) that a special staffing be held to resolve disagreements about whether a nursing facility resident should leave the nursing facility or move to a specific placement must be changed. The commenters stated that the individual or LAR will resolve a disagreement by making the decision. The commenters stated that the Centers for Medicare and Medicaid Services (CMS), formerly the Health Care Financing Administration (HCFA), issued a ruling in 1993-1994 against DHS that supported the right of the individual or LAR to make this decision.

Response: This provision is included to address those situations in which a person residing in a nursing facility wants to leave but family members, nursing facility staff, and other concerned persons believe that the person's health and safety would be seriously compromised in community-based setting. As written, the provision does not take away decision-making authority from a person who has capacity to make decisions or the LAR of that person. The provision provides a forum for the person's family members, nursing facility staff, and other concerned persons to attempt to convince the person to remain in the nursing facility.

In addition, DHS added use of the acronym LAR to mean "legally authorized representative" at the request of TDMHMR in §72.104(b)(3)(A), (c)(1)(A)(ii), and (d)(2).

The new section is adopted under the Human Resources Code, Chapter 22, which authorizes DHS to administer public assistance and support programs for persons with disabilities.

The new section implements the Human Resources Code, §§22.0001-22.038.

§72.104.Relocation Pilot Program.

(a) Background and purpose. The Texas Department of Human Services (DHS), the Texas Department of Mental Health and Mental Retardation (TDMHMR), and the Texas Department of Protective and Regulatory Services (PRS), are required under SB 367 of the 77th Legislative Session and the provisions of the Human Resources Code, §22.038, to adopt a joint memorandum of understanding (MOU) to facilitate the coordination and implementation of a pilot program under the provisions of Human Resources Code §22.037. The pilot program will be implemented, subject to availability of funds, to provide a system of services and support that fosters independence and productivity and provides meaningful opportunities for persons with disabilities to live in the community. The terms of this MOU apply in those areas of the state in which community awareness and relocation pilot programs will be implemented.

(b) Components of the pilot program. Human Resources Code §22.037 provides that the pilot program, subject to the availability of funds, shall include the following components:

(1) A comprehensive system of improved policies and procedures to avoid inappropriately placing a person with a disability in an institution, including policies and procedures that require:

(A) a preadmission screening for the person that includes the participation of hospital discharge staff and the person's physician; and

(B) an analysis of the costs, benefits, and effectiveness of placing the person in a community- based alternative care setting.

(2) A program under which physicians who treat persons with disabilities and hospital discharge staff are:

(A) educated about the availability of community-based alternatives to institutionalization to reduce the number of persons inappropriately placed in an institution; and

(B) required to inform a person with a disability and any other person required to be provided information under Section 531.042, Government Code, of all care and support options available to the person with the disability, including community-based care and support options, before that person makes a decision regarding a long-term care placement.

(3) A program, including a program implemented through grants to community-based organizations, to provide a transition case manager to:

(A) assist a person with a disability in making a transition from an institution to a community- based alternative care setting after that person or the person's legally authorized representative (LAR) decides the person should make that transition; and

(B) coordinate with the local mental health or mental retardation authority as defined in Section 531.002, Health and Safety Code in:

(i) providing services to the person related to the assistance described in (A) above, if applicable; and

(ii) conducting outreach initiatives as indicated in (4) below.

(4) A program to provide grants to community-based organizations to conduct outreach initiatives to identify persons with disabilities who may inappropriately reside in an institution.

(5) A program under which presumptive eligibility is authorized for community-based care and support programs for a person with a disability.

(6) DHS will implement each component of the pilot program as described above for which the legislature appropriates sufficient funds. DHS is not required to implement a component if the legislature does not appropriate sufficient funds for that component.

(c) Roles and responsibilities of the agencies relating to the pilot program.

(1) The Texas Department of Human Services (DHS) will implement the following pilot program components for which funding and/or resources are available:

(A) DHS will contract with eligible non-profit/for profit organizations for a 12-month period, to implement the following components:

(i) Community awareness activities at pilot sites. The contractor will be required to develop and implement a community awareness campaign. Community awareness contract staff will educate nursing facility residents, their LARs and their families, individuals at risk of being institutionalized, medical professionals who treat persons with disabilities, hospital discharge planners, and all others involved in the decision-making process about the availability of community-based alternatives to institutionalization to reduce the number of persons inappropriately placed in an institution.

(ii) Relocation services at pilot sites. The contractor will be required to utilize relocation specialists (transition case managers) to assist a person with a disability in making a transition from a nursing facility to a community-based alternative care setting after that person or the person's LAR decides the person should make the transition. Relocation services will be provided to children and adults residing in nursing facilities in the pilot areas.

(B) DHS community awareness and relocation contract staff will be required to coordinate with the local mental health or mental retardation authority as defined in Section 531.002, Health and Safety Code, in:

(i) providing services to the person being relocated, if applicable; and

(ii) conducting outreach initiatives as described in subparagraph (C) of this paragraph.

(C) DHS community awareness and relocation contract staff will conduct outreach initiatives to identify persons with disabilities who may inappropriately reside in a nursing facility and inform them of alternatives to institutionalization and relocation services.

(2) The Texas Department of Mental Health and Mental Retardation (TDMHMR) will engage in the following activities:

(A) TDMHMR will provide to DHS' contractor a description of:

(i) persons who may be eligible to receive TDMHMR funded services (referred to as TDMHMR's "priority population"); and

(ii) services funded by TDMHMR.

(B) TDMHMR will inform local mental health and mental retardation authorities that serve the areas included in the pilot program regarding:

(i) pilot activities; and

(ii) the potential for additional referrals from nursing facilities.

(3) The Texas Department of Protective and Regulatory Services (PRS) will identify for DHS the PRS clients with disabilities who are currently residing within nursing facilities in the pilot sites and who are appropriate for transition to a community-based living arrangement.

(d) Coordination and Integration of services.

(1) DHS, TDMHMR, and PRS will coordinate needed services to the targeted population at pilot sites to the greatest extent possible by fulfilling the responsibilities listed above.

(2) If there are disagreements among the signatory agencies, nursing facility resident, LAR, and/or nursing facility staff about whether a client should leave the nursing facility or whether the client should move to a particular placement, the agencies will conduct a special staffing to attempt to resolve the disagreements, consistent with any court-imposed limitations and agency rules and policies.

(3) The sharing of information among TDMHMR, DHS, and PRS will be conducted in a manner which does not violate confidentiality laws and regulations.

(e) Amendments or modifications.

(1) No later than September 1 of each year, DHS, TDMHMR, and PRS will review and update this memorandum.

(2) Each agency by rule will adopt the MOU and all revisions to the MOU.

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 January 10, 2003.

TRD-200300108

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: January 30, 2003

Proposal publication date: July 26, 2002

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


Part 6. TEXAS COMMISSION FOR THE DEAF AND HARD OF HEARING

Chapter 181. GENERAL RULES OF PRACTICE AND PROCEDURE

Subchapter A. GENERAL PROVISIONS

40 TAC §181.28

The Texas Commission for the Deaf and Hard of Hearing adopts amendments to §181.28 without changes to the text as published in the November 29, 2002, issue of the Texas Register (27 TexReg 11056).

The amendment is adopted to implement an increase in the application fee for children applying for camp to help cover the rising cost of the program.

No comments were received regarding adoption of the amendment.

This amendment is adopted under the Human Resources Code, §81.006(b) (3), which provides the Texas Commission for the Deaf and Hard of Hearing with the authority to adopt rules for administration and programs.

No other statute, code or article is affected by this adopted amendment.

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 January 13, 2003.

TRD-200300155

David Myers

Executive Director

Texas Commission for the Deaf and Hard of Hearing

Effective date: February 2, 2003

Proposal publication date: November 29, 2002

For further information, please call: (512) 407-3250


Part 9. TEXAS DEPARTMENT ON AGING

Chapter 253. STATE AGING PLAN

40 TAC §253.3

The Texas Department on Aging adopts an amendment to §253.3, concerning Area Agency on Aging Funding Allocation Formula for Older Americans Act Program. The rule is adopted without changes to the proposed text as published in the November 29, 2002, issue of the Texas Register (27 TexReg 11056) and will not be republished.

The amendment is necessary to provide for a phase-in of the new funding formula for fiscal years 2003 and 2004. The previously approved rule did not contain any provision for phasing-in the impact on allocations to Area Agencies on Aging based on the current census data. The phase-in provisions impact allocations for Area Agencies on Aging who will receive increase or a decrease in funding. The phase-in provision will reduce the impact on regions that have realized a decrease and provide adequate time for any transition in services and provide regions that have realized an increase an opportunity to plan appropriately for increasing funding levels.

No comments were received regarding adoption of the rule.

The amendment is adopted under Texas Human Resources Code §101.021, which provides the Texas Department on Aging with the authority to promulgate rules governing the operation of the Department. Contrary to the statement in the notice of proposed rule, this amendment is not adopted under Texas Government Code, §2161.003.

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 January 10, 2003.

TRD-200300125

Gary Jessee

Director of the Office of AAA Support and Operations

Texas Department on Aging

Effective date: January 30, 2003

Proposal publication date: November 29, 2002

For further information, please call: (512) 424-6857


Chapter 270. GENERAL SERVICE REQUIREMENTS

The Texas Department on Aging adopts the repeal and replacement of §270.19, concerning Residential Repair Services. The repeal is adopted without changes. The new rule is adopted with changes to the proposed text as published in the November 29, 2002, issue of the Texas Register (27 TexReg 11056). The text of the rule will be republished.

The repeal and new rule are necessary to increase the amount of funds that may be expended on for residential repair services from $1500 to $4500 per home. Additionally, targeting requirements have been updated to reflect the requirements of the Older Americans Act, the section of the rule relating to allowable repairs has been broadened and the administrative requirements have been eliminated, as they are included in other rules. Area Agencies on Aging have reported an inability to provide the minimum amount of residential repair services that are needed when the limit is set at $1500. Additionally they have reported difficulty in securing contractors to perform needed repairs at the $1500 limit. The increase in the amount of funds that may be expended for residential repair services allows Area Agencies on Aging to provide needed services where the minimum amount of repairs exceeds $1500 and to secure contractors to make the repairs. The allowable repair categories have been broadened to provide greater flexibility in the types of repairs that may be provided. The previous rule was restrictive in the types of services that may be provided.

The changes to the text of the replacement rule as published are made to §270.19(f), (g), and (h). In subsection (f), The term "one unduplicated dwelling" has been replaced with "one home" to clarify that a unit a service represents all repairs on one home. The second sentence is reworded to clarify that an Area Agency on Aging may not expend more than $4500 of Department provided funds on a unit of service without prior written approval from the Department. In subsections (g) and (h) clarifying language has been added to make the subsections easier to understand and to make clearer the intent of those subsections.

The Department's representative from the Office of the Attorney General has advised that the changes affect no new persons, entities, or subjects other than those given notice and that compliance with the adopted sections will be less burdensome than under the proposed sections. Accordingly, republication of the adopted sections as proposed amendments is not required. The Texas Register will republish the text of the rule.

No comments were received regarding adoption of the rule.

40 TAC §270.19

The repeal is adopted under Texas Human Resources Code §101.021, which provides the Texas Department on Aging with the authority to adopt rules governing the functions of the Department. Contrary to the statement in the notice of proposed rule, it is not adopted under Texas Government Code §2161.003.

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 January 10, 2003.

TRD-200300127

Gary Jessee

Director of the Office of AAA Support and Operations

Texas Department on Aging

Effective date: January 30, 2003

Proposal publication date: November 29, 2002

For further information, please call: (512) 424-6857


40 TAC §270.19

The new rule is adopted under Texas Human Resources Code §101.021, which provides the Texas Department on Aging with the authority to adopt rules governing the functions of the Department. Contrary to the statement in the notice of proposed rule, it is not adopted under Texas Government Code §2161.003.

§270.19.Residential Repair Services.

(a) Purpose. The purpose of this rule is to improve the condition of the older person's residence to enhance energy efficiency, structural integrity, health and safety.

(b) Scope. This rule applies to residential repair services funded in whole or part with federal or state funds provided through the Texas Department on Aging.

(c) Targeting. Area agencies on aging shall target individuals in accordance with the Older Americans Act, §305.

(d) Service Authorization. Residential repair services shall be authorized in accordance with §260.3 (o)(2)(B) of this title (relating to System of Access and Assistance).

(e) Outcomes. Homes shall receive repairs and/or modifications that are essential for maintaining the health, safety and independence of its older residents. Clients will be provided an opportunity to express their level of satisfaction with residential repair services received.

(f) Unit of Service. One home that has received residential repair services regardless of the amount or number of times repairs are provided. An Area Agency on Aging may not expend more than $4500 of Department provided funds on a unit of service without prior written approval from the Department.

(g) Service Definition. Allowable repairs include:

(1) Structural Services. Any repairs to the structure itself considered necessary to the health and safety of the client.

(2) Accessibility Modification. Structural adaptations that meet the needs of older persons who have disabling conditions.

(3) Electrical Services. Replacement of unsafe or defective wiring, replacement of telephone conduits to permit the installation of an emergency response unit and replacement of light switches.

(4) Plumbing Services. Replacement, repair and/or installation of essential plumbing lines or fixtures.

(5) Weatherization. Repairs and/or modifications or purchase of supplies that protect the home or its resident(s) from the effects of the weather, conserve energy or provide alternative energy sources to heat or cool.

(6) Safety and Security Modification. Measures that prevent accidents, fires or intrusion into a dwelling and the repair, modification, treatment or removal of safety hazards in the home or yard.

(7) Essential Appliance. Appliances necessary to sustain a healthy environment and independent living.

(8) Repair of Rental Units. The area agency on aging may elect to perform residential repair service on rental units occupied by eligible clients who are the primary resident. If work is performed on rental units, the residential repair service providers (AAA) must obtain a signed agreement from the landlord authorizing the repairs and/or modifications.

(h) Prohibited Activities. This includes the following:

(1) construction, repair or maintenance of outbuildings such as garages, carports, animal shelters or greenhouses;

(2) installation, repair or maintenance on non-essential appliances and fixtures; and

(3) beautification of property or activities which are strictly for cosmetic purposes.

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 January 10, 2003.

TRD-200300126

Gary Jessee

Director of the Office of AAA Support and Operations

Texas Department on Aging

Effective date: January 30, 2003

Proposal publication date: November 29, 2002

For further information, please call: (512) 424-6857


Part 20. TEXAS WORKFORCE COMMISSION

Chapter 803. SKILLS DEVELOPMENT FUND

The Texas Workforce Commission (Commission) adopts the repeal of Chapter 803. Skills Development Fund, Subchapter A. General Provisions Regarding the Skills Development Fund, §§803.1-803.3; Subchapter B. Program Administration, §§803.11-803.15; Subchapter C. Program Administration After Award of Contract, §§803.31-803.35; and new Chapter 803. Skills Development Fund, Subchapter A. General Provisions Regarding the Skills Development Fund, §§803.1-803.3; Subchapter B. Program Administration, §§803.11-803.12 and §§803.14-803.15; and Subchapter C. Program Administration After Award of Contract, §§803.31-803.36, without changes as published in the September 13, 2002 issue of the Texas Register (27 TexReg 8743). The text is not being republished. New §803.13 is adopted with changes and is being republished.

The purpose of the adopted rules is to interpret and administer Texas Labor Code, Chapter 303, relating to the operation of the Skills Development Fund.

As part of the Commission's innovative system of workforce training and services, the Skills Development Fund exists to meet the needs of Texas employers for the development of a highly skilled and productive workforce through customized job training for new and existing jobs. Customized job training provided through the Skills Development Fund also prepares, places and retains individuals in employment, and meets the needs of workers of this state for education and skills. By merging private and public interests into a winning formula for putting Texans to work, the Skills Development Fund ensures a trained workforce for Texas employers with high-skill, in-demand employment positions.

The Skills Development Fund teams the business community with education organizations, such as public community and technical colleges, the Texas Engineering Extension Service (TEEX), or community-based organizations in partnership with education organizations, to fund customized job training for employers needing high-skilled workers for new or existing positions. This formula successfully merges employer needs and local job training opportunities that in turn expands the local workforce and economic base of a community. As an opportunity to expand a local workforce and economic base, and as a source of workforce development funds provided to a local workforce development area, the Commission encourages employers and education organizations to collaborate with the Local Workforce Development Boards (the Boards) when creating Skills Development Fund proposals. The Boards are the Commission's partner in workforce training and service delivery and the architects of local workforce development policy, but also have valuable local economic development expertise and resources beneficial to successfully creating a proposal or implementing customized job training.

The new rules incorporate substantially all of the requirements currently contained in Chapter 803, which is concurrently adopted for repeal. However, because of the extensive nature of the changes, the Commission proposes the repeal of the current rules and proposes new rules. The new rules describe the operation of the Skills Development Fund. The new rules update the rules to reflect current workforce development philosophy and policy, strengthen accountability of the grant recipients, encourage collaboration with the Boards, enhance administrative efficiency of the fund, and provide clarity throughout Chapter 803. Some of the nonsubstantive changes include minor typographical edits, changes in terminology in line with the definitions set out in Chapter 800 distinguishing Commission, meaning three member decision-making body of the Commission, from Agency, meaning the Texas Workforce Commission as an Agency responsible for implementing and administering programs. The purposes and goals of the Skills Development Fund are to increase the skills and wages of Texas' workforce, to enhance the ability of education organizations to respond to employer and workforce training needs, and to develop incentives for education organizations to provide customized assessment and training in a timely and efficient manner. The fund provides customized job training throughout the state. The rules describe the procedure to be used in making an application for a Skills Development Fund award, in evaluating the proposals submitted, enumerate the responsibilities of the grant recipient, and list the requirements that the grant recipient must meet in order to obtain payment on training contracts. A document reflecting the new rules may be viewed at www.twc.state.tx.us/twcinfo/rules/prorules.html, or requested by contacting Kathy Turney at (512) 936-9256, faxing (512) 463-2672, e-mailing Kathy.Turney@twc.state.tx.us, or writing to the Texas Workforce Commission, 101 East 15th Street, Room 526-T, Austin, Texas, 78778-0001.

Subchapter A contains §§803.1-803.3 and sets out the provisions relating to the scope and purpose, definitions, and uses of the fund.

Specifically, the purposes of the sections contained in Subchapter A are as follows.

Section 803.1 sets out the scope and purpose of the Skills Development Fund. A reference to wages is added as part of the goal to clarify that the goal of the fund is to increase the wage level of the trainee in addition to the skills level of the trainee.

Section 803.2 sets out the definitions. Some of the definitions, such as customized training project and private partner, are edited for clarity within the rule and to enhance administrative efficiency of the fund. The clarifications made to the definitions are reflected through the remainder of the Chapter 803, where applicable, to clarify the rules. The term "Director" is simplified to allow the reader to understand clearly when duties can be delegated and not delegated to a designee, and edits to reflect this change are made through the remainder of Chapter 803 where applicable to clarify the rules. Throughout Chapter 803, the term "training project" replaces the term "training program" to provide clarity to the rules and update the rules to reflect current workforce development philosophy and policy. Other edits made to this section are to correct typographical errors.

Section 803.3 sets out uses of the Skills Development Fund. The term public community college is added in reference to junior colleges because the Texas Education Code treats them interchangeably. Including a reference to public community colleges clarifies Chapter 803 and enhances administrative efficiency of the fund.

Subchapter B contains §§803.11-803.15 and sets out the provisions relating to program administration.

Section 803.11 sets out the provisions for grant administration. This section is edited to clarify the role of the Executive Director, and brings the rule in line with definitions set out in Chapter 800 that distinguish Agency and Commission. Subsection (c) is eliminated because of redundancy.

Section 803.12 sets out the limitations on awards. Edits are made to this section to bring the rule in line with definitions set out in Chapter 800 that distinguish Agency and Commission. Other edits are made to clarify the rule under Chapter 803.

Section 803.13 sets out the program objectives. A new objective is added to address the development of projects that will create jobs in local workforce development areas through the collaboration with the Boards. As the Commission's partner in workforce training and service delivery and the architects of local workforce development policy, the Boards should be informed about workforce training funding designed to impact employment and training in a local workforce development area. Furthermore, the Boards should be utilized as a local economic development resource. The new objective is added to emphasize that employers and education organizations should work with the Boards when preparing Skills Development Fund proposals. Former subsection (a)(2) is removed because it is redundant with former subsection (a)(3), which is now new subsection (a)(4). In an effort to streamline the objectives for administrative efficiency, some objectives with common issues are merged. Former objectives under subsections (a)(1) and (a)(12) are merged into new subsection (a)(1); former subsections (a)(8) and (a)(9) are merged into new subsection (a)(5). The Commission has made a change to §803.13(a)(3) at adoption to clarify that the trainee must receive a wage in that occupation that is equal to or greater than the prevailing wage for a person of like experience and knowledge in the local labor market. This clarification reflects current practice that takes into consideration the experience and knowledge of the trainees when the trainees are placed into a job following the Skills Development Fund training. The Commission has made a change to §803.13 (a)(5) at adoption that removes the reference to targeted occupations and demand occupations as examples of occupation that are suitable to that objective. This change will allow the Commission to retain the flexibility to review proposed training projects under the objective §803.13(a)(5) on a case by case basis. Furthermore, the Commission strikes the objectives listed in §803.13(a)(6) through §803.13(a)(10) because the objectives are redundant, and the Commission seeks to focus on the objectives listed in §803.13 (a)(1) through §803.13 (a)(5).

Section 803.14 sets out the procedures for requesting Skills Development Fund grant funding. Subsection (a) now calls for employer and education organizations to obtain from the Boards review and comments of the proposal. Any review and comments of the Board would be part of the proposal submission to the Agency. The Skills Development Fund is a vital source of customized training funds for a local workforce development area and local economy. As architects of local workforce development policy, the Boards should be informed of and have the opportunity to collaborate on any workforce training that might come into a local workforce development area. When preparing the proposal, businesses, education organizations, and community-based organizations must recognize that the Boards are the cornerstone of workforce training and services in a local workforce development area, and coordinate accordingly. Under subsection (c), the parties submitting the joint proposal and the Board must disclose to the Agency if the parties are seeking other funding from the Commission to fund the proposed training project or a similar project, such as funding through an Achieving Performance Excellence (APEX) grant. Though the Commission encourages the development of training projects that facilitate the integration with other state and federally funded training, the use of Skills Development Fund grant funds to duplicate training projects available in a local workforce development area, or that would be available concurrently with the adopted Skills Development Fund training, is not considered an efficient use of scarce resources and funds by the Commission. Other changes made to Section 803.14 are made for clarity of Chapter 803, to strengthen business and education organization commitment to the Skills Development Fund grant funded training, to strengthen contract monitoring issues, and to eliminate parts of the rule that are no longer applicable, such as the provisions relating to the now defunct Smart Jobs Fund.

Section 803.15 sets out the procedures for proposal evaluation. This section's edits provide clarity to the rule and bring the rule in line with Chapter 800 definitions distinguishing Agency and Commission. A new section is added to establish the notification of Boards when the Agency is evaluating a proposal in order to keep the Boards up to date about potential workforce activities in a local workforce development area.

Subchapter C contains §§803.31-803.36 and sets out the provisions relating to program administration after award of contract.

Section 803.31 sets out the grant recipient responsibilities. The adopted new subsection (a) requires a grant recipient to submit financial and performance reports to the Agency on a quarterly basis based on the commencement date of the contract. Other provisions clarify the rules, such as replacing the term contractor with grant recipient. Four new subsections are added. These are added to bring clarity to the rules, strengthen the contractual obligations of the grant recipient, enhance administrative efficiency of the fund, strengthen contract monitoring procedures, and to provide the grant recipient with guidance on how to submit reports and establish the treatment of additional reports requested by the Agency.

Section 803.32 sets out the provisions for contract completion reports. Edits are made to provide clarity to the rule or are made to bring the terminology in line with definitions set out in Chapter 800. The term contractor is replaced with grant recipient for clarity. The time frame to submit final reports is reduced from 90 days to 60 days following the end of the contract period to accelerate the closeout process and enhance administrative efficiency of the fund. Subsection (5), which addresses payroll records and reports, is edited to provide the grant recipient greater flexibility with regard to obtaining trainee wage information from the employer participating in the customized job training.

Section 803.33 sets out the contract payment provisions. The provisions are edited to provide clarity on how the final payment will be completed. It is also edited to specify that final payment of the awarded funds will be withheld for 60 days after the completion of training and after receipt by the Agency of verification from the employer that the trainees are employed in occupations agreed upon in the contract, which will accelerate the closeout process and enhance administrative efficiency of the fund.

Section 803.34 sets out the notice to the Texas Higher Education Coordinating Board. Edits are made to provide clarity to the rule, or are made to bring the terminology in line with definitions set out in Chapter 800.

Section 803.35 is a new section that sets out notification to the Boards when a Skills Development Fund grant is awarded. The rule is added to update workforce development philosophy and policy with regard to the role of the Boards and the Skills Development Fund. The new rule will also enhance administrative efficiency of the fund and provide the Boards with notice of workforce training funding invested by the Commission in a local workforce development area.

Former section 803.35 is renumbered to section 803.36 to provide clarity to the rules under Chapter 803. New section 803.36 is the same as former section 803.35.

Comments were received from the following five Boards:

*Permian Basin Workforce Development Board;

*West Central Workforce Development Board;

*Capital Area Workforce Development Board;

*Concho Valley Workforce Development Board; and

*North Central Texas Workforce Development Board.

Comments were also received from the San Antonio Economic Development Foundation.

Some commenters agreed with the new rules, some disagreed with the changes, and some made recommendations for changes to the proposed language. The comment summaries and responses are as follows.

Comment: One commenter was supportive of the rule changes.

Response: The Commission is appreciative of the comments.

Comment: One commenter felt the proposed changes brought the Skills Development Fund program closer to the Boards, and felt that the changes would help the Board more closely align the structure of the Skills Development Fund with Workforce Investment Act (WIA) employment and training programs; increase communication and coordination between community colleges, technical colleges, TEEX, and the Boards; and increase the synergy between Skills Development Fund programs and local employment and training programs through close coordination, greater communication, and added accountability. The commenter felt that Skills Development Fund training projects and local employment and training programs can accomplish much more by working together than either can accomplish separately.

Response: The Commission agrees with the commenter that the rules further the Commission's strategy of aligning employers, education organizations, and the Boards, which will result in greater communication, coordination, and synergy between employers, education organizations, and the Boards, thereby better serving the workforce network and its employer-driven goals. The Commission also agrees with the commenter that employers, education organizations, and the Boards accomplish more working together than they do working separately, and encourages these local partners to strengthen communication and collaboration to improve the local workforce and economic base of the community.

Comment: One commenter applauded the usefulness of the fund and our simplified process, but felt the program needed to be flexible for projects unique to Texas and high economic impact projects.

Response: The Commission agrees that the Skills Development Fund needs to continue to maximize the economic impact of employers, workers, and communities across Texas. The Commission agrees with the commenter's suggestion that the program should be flexible. Under the rules, the Commission retains flexibility to allow the Commission to meet the needs of employers, but also to maximize allocated dollars appropriated each year and to distribute the funds statewide as required under Texas Labor Code §303.003(e).

Comment: Regarding §803.3(d)(2), §803.3(d)(3), and §803.3(d)(4), one commenter stated that the program should be flexible to cover the purchase of proprietary or production equipment required for the training project of a single employer, the travel cost of trainees and instructors, and to pay a portion of the wages of employees who are a part of a Skills Development Fund job-training project.

Response: The Commission agrees with the commenter's suggestion that the Skills Development Fund should be flexible. Under §803.36 Waiver, it is at the discretion of the Agency's executive director to suspend or waive a rule upon a showing of good cause. Hence, though the rules ban the use of Skills Development Fund money to pay for the purchase of proprietary or production equipment required for the training project of a single employer, travel costs of trainees and instructors, and to pay wages of employees, these rules may be waived by the Agency's executive director upon a showing of good cause in a grant proposal, thereby allowing the Commission the flexibility to maximize economic impact on employers, workers, and communities across Texas.

Comment: Regarding §803.12(1), one commenter stated that the Commission needed to continue to broaden the program and maximize its economic impact. The commenter stated that the Commission should not limit all projects to $500,000, or at the very least should make allowances for larger or exceptional projects based on economic impact, number and level of jobs or some measurement that emphasizes the need for Texas to better compete for high impact and primary employers.

Response: The Commission agrees with the commenter's suggestion that the program should be flexible. Under §803.12 Limitation on Awards, the Commission retains flexibility to allow the Commission to meet the needs of employers because the Commission may, at its discretion, limit training projects to $500,000 for grants involving a single employer. As a discretionary limitation, the rule furnishes the Commission the desired flexibility to meet the needs of employers, but also enables the Commission to spend Skills Development Fund grant money statewide, as required under Texas Labor Code §303.003(e).

Comment: Regarding §803.12(2), one commenter stated that the program should be flexible to cover the cost of purchased equipment beyond the 10% limit for required training.

Response: The Commission agrees with the commenter's suggestion that the program should be flexible. Under §803.12 Limitation on Awards, the Commission retains flexibility to allow the Commission to meet the needs of employers because the Commission may, at its discretion, limit the purchase of any proprietary or production equipment required for training to 10% of grant funds. As a discretionary limitation, the rule furnishes the Commission the desired flexibility to meet the needs of employers, but also enables the Commission to spend Skills Development Fund grant money statewide, as required under Texas Labor Code §303.003(e).

Comment: Regarding §803.12(4), one commenter stated that all Skills Development Fund projects should operate at a 10% administrative cost cap rather than allowing projects with more than one employer to have up to 15% for administrative costs, and claimed that if training programs were done in concert with community partners, such as the Boards, a 10% percent administrative cost would be sufficient. The commenter also noted that the Commission has the authority to waive sections of the rules if a project needed more room for administrative costs.

Response: Under §803.12 Limitation on Awards, the Commission retains flexibility to meet the needs of employers because the Commission may, at its discretion, cap administrative costs at 10% for single employers, and 15% for multiple employers. The Commission disagrees with the commenter's suggestion that multiple employer grants should be capped at 10% under §803.12. The 15% administrative cost cap encourages employers to team together or join a business consortium that in turn could train more employees per capita and address more skills at an overall less administrative cost per student. It also encourages employers to communicate and work together to identify the needed skills for a local workforce area. Furthermore, the increased cap for multiple employer or consortium grants drives education organizations to pursue such collaborations and gives the Commission the flexibility to appropriately fund the administrative costs of the grant recipient. Because the rule merely sets a discretionary maximum limitation on administrative costs, the Commission may also, at its discretion, cap administrative costs below the limitations set out in the rule.

Comment: Regarding §803.13(a)(2), a commenter stated that collaboration and coordination with the local workforce development boards was positive, however, expressed concern that it could cause delay in the application process.

Response: The Commission agrees that more collaboration and coordination with the Boards is essential to the overall workforce and economic impact in communities and encourages employers, education organizations, and the Boards to coordinate with one another early in the planning process so as to not delay the application process.

Comment: Regarding §803.13(a)(2), one commenter felt the phrase "collaboration with the Boards" was too general and suggested amending the phrase in the objective to state, "To collaborate with local Workforce Boards in the planning, design, and evaluation of the Skills Development grant." The commenter felt that "collaboration" meant nothing more than obtaining a letter of support from the Board.

Response: The Commission agrees that more collaboration and coordination with the Boards is essential to impact the local workforce and economic base of a community, and encourages employers, education organizations, and the Boards to coordinate with one another early in the planning process so as to not delay the application process. The Commission disagrees with imposing requirements in the rules to force these local partners into working relationships, rather the local partners should foster productive relationships as part of their goal in meeting the workforce and economic development needs of the workforce area.

Comment: Regarding §803.13(a)(5), one commenter agreed that training projects funded through the Skills Development Fund should focus on occupations that facilitate the growth of industry and foster the economic growth of the region, but strongly believed the training projects should only focus on training for jobs listed as targeted occupations by the Boards to ensure new hires and current workers receive self-sufficient wages that include benefits.

Response: The Commission agrees with the commenter's suggestion about high value, high skills jobs; however, the Commission disagrees that Skills Development Fund grants should be limited exclusively to training projects involving targeted occupations. The Commission is removing the reference to targeted occupations and demand occupations in proposed §803.13(a)(5) to allow the Commission to retain the flexibility to determine if a proposed training project meets the objective under §803.13(a)(5) on a case by case basis, and not based upon whether the occupation that is the subject of the proposed training is on a targeted occupation or demand occupation list. However, in working with employers and education organizations, the Board is free to support or not support proposals based on whether Skills Development Fund training proposals address the local workforce development needs and goals. Furthermore, the Commission strikes objectives listed in §803.13(a)(6) through §803.13(a)(10) because these objectives are redundant, and the Commission seeks to emphasize the objectives listed in §803.13(a)(1) through §803.13(a)(5).

Comment: Regarding §803.13(b), one commenter stated that the proposed rule should be amended so that priority shall be given to counties, rather than workforce areas, whose unemployment rates are higher than the state's annual unemployment rate. The commenter gave an example and pointed out that many workforce areas cover multiple counties. Although some of the counties have an unemployment rate higher than the state's annual average unemployment rate, the grant proposal would not be given priority because other counties in the workforce area bring the average unemployment rate for the entire workforce area below the state average unemployment rate.

Response: The Commission disagrees with the commenter's suggestion to amend the rule to give priority to counties with a high unemployment rate. However, county unemployment rate information may be included in an application by the employer and education organization as additional information for the Commission to consider, though it would not give the application priority status under §803.13(b).

Comment: Regarding §803.14, two commenters suggested that the following should be added to §803.14 to enhance Board engagement with Skills Development Fund projects. Two commenters suggested the first four items, and one commenter suggested the last two items.

*Proposal shall contain a statement about the role and extent of involvement of the Boards in the planning, implementation and evaluation processes.

*Proposal shall contain a statement identifying the relationship to the Board's targeted occupation list.

*Proposal shall contain a statement about how the Boards will be informed on a regular basis of project progress.

*For prior recipients of Skills Development Funds, the proposal shall contain a brief description of effectiveness of the project in meeting the planned financial and programmatic goals.

*Proposal shall contain a description of how the training project will coordinate with existing workforce employment and training programs.

*Proposal shall contain a description of how the training project will coordinate with local workforce centers.

Response: Though the Commission strongly encourages employers and education organizations to involve the Boards early in the planning process so as not to delay the review and comment requirements of the application, the Commission disagrees with the commenters' suggested additions to §803.14. It is the responsibility of the local partners to foster relationships and collaborate on projects to improve workforce and economic circumstances for local residents. However, the Commission may consider adding similar requirements to the grant applications to encourage collaboration and coordination among employers, education organizations and the Boards.

Comment: Regarding §803.14, two commenters appreciated the revisions to the rules in regard to the Boards' increased role; however, the two commenters felt that communication would be ensured if language in this section were revised to require the education organizations and employers to engage the Boards during the planning process and/or provide written notification to the Boards of the intent to apply for Skills Development Fund grant funds 30 to 45 days in advance of proposal submission to the Board.

Response: The Commission agrees that more collaboration and coordination with the Boards is essential to the workforce and economic development of communities and encourages employers, as partners of this employer-driven system, and education organizations to coordinate with the Boards early in planning of training projects so as not to delay the application process for Skills Development Fund grants. The Commission disagrees with adding such time restrictions by rule because it is the responsibility of employers, education organizations, and the Boards to foster relationships and collaborate on projects that will improve workforce and economic circumstances for local residents.

Comment: Regarding §803.14, one commenter stated that the Skills Development Fund needed to be more closely aligned with the Boards, but expressed concern about pressure placed on the Board to support a Skills Development Fund grant without having adequate time to review and comment on a submitted proposal.

Response: The new rules reflect the Commission's strategy to more closely align employers, education organizations, and the Boards, as all three are local partners and are responsible for fostering a productive working relationship to improve the local workforce and economic base of the community. The Commission strongly encourages employers and education organizations seeking Skills Development Fund grants to strengthen communication and collaboration with the Boards to ensure success. Because relationships need to be fostered at a local level, the Commission disagrees with imposing requirements on employers and education organizations submitting proposals to the Boards because it is the responsibility of these local partners to work together on such issues. Furthermore, the Commission accepts grant applications at any time. The Commission does not set deadlines on submitting applications because the Commission wants to encourage employers and education organizations to develop projects when appropriate, and not based on arbitrary deadlines.

Comment: Regarding §803.31(a), two commenters suggested that the grant recipients provide to the Boards copies of the quarterly contract reports that are to be submitted to the Commission.

Response: The Commission strongly encourages the local partners to establish productive relationships and keep each other informed of on-going workforce training in a local area. Although the Board should be informed about the progress of Skills Development Fund training in the local workforce area, the Commission disagrees with the commenters' suggestion that the Boards be provided copies of the quarterly reports. Skills Development Fund grant contracts are between grant recipients and the Commission, and because the Board is not a party to the contract, the Commission is concerned about confidential information contained in the reports that is required to remain confidential based on federal and state laws. However, in an effort to keep the Board apprised of on-going workforce training, the Commission may make a progress report available to the Board at the Board's request.

Comment: Regarding §803.32, two commenters suggested that the grant recipients provide to the Boards copies of the final contract reports that are to be submitted to the Commission.

Response: The Commission strongly encourages the local partners to establish productive relationships and keep each other informed of on-going workforce training in a local area. Although the Boards should be informed about the progress of Skills Development Fund training in the local workforce area, the Commission disagrees with the commenters' suggestion that the Boards be provided copies of the final reports. Skills Development Fund grant contracts are between grant recipients and the Commission, and because the Board is not a party to the contract, the Commission is concerned about confidential information contained in the reports that is required to remain confidential based on federal and state laws. However, in an effort to keep the Board apprised of on-going workforce training, the Commission may make a progress report available to the Board at the Board's request.

Comment: One commenter felt that the Skills Development Fund program should be devolved to the Boards as other federal and state programs have been transitioned to the Boards.

Response: The Commission recognizes the need for the Boards to have visibility and flexibility regarding their role in planning and implementing economic and workforce development policy in a local workforce area, and the rules succeed in more closely aligning the Boards, employers, and education organizations regarding Skills Development Fund training. However, the Commission disagrees with the commenter's suggestion of transitioning the Skills Development Fund program to the Boards at this time. There are unique opportunities that present themselves at the State level or at companies with locations in more than one workforce area, and the Commission does not want to limit its flexibility in responding to requests from those entities for training funds. In addition, the Commission has taken steps this year through the Workforce Investment Act (WIA) alternative funding mechanism to ensure that Boards have flexible funding to be used for employer's emergent needs and customized training projects. The Commission has also requested relief via a WIA waiver from the Department of Labor on the amount of matching fund required of employers for WIA customized training projects that are funded with an individual Board's own allocation. The Commission does, however, believe a stronger relationship between applicants for Skills Development Fund grants and the Boards is critical to the success of these projects. The new rules seek closer alignment of all the interested parties.

Subchapter A. GENERAL PROVISIONS REGARDING THE SKILLS DEVELOPMENT FUND

40 TAC §§803.1 - 803.3

The rules are repealed under Texas Labor Code §301.061 and §302.002, which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities.

The repeal affects Texas Labor Code, Titles 4 as well as Texas Government Code Chapter 2308.

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 January 9, 2003.

TRD-200300074

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: January 29, 2003

Proposal publication date: September 13, 2002

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


40 TAC §§803.1 - 803.3

The new rules are adopted under Texas Labor Code §301.061 and §302.002, which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities.

The rules affect Texas Labor Code, Titles 4 as well as Texas Government Code Chapter 2308.

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 January 9, 2003.

TRD-200300075

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: January 29, 2003

Proposal publication date: September 13, 2002

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


Subchapter B. PROGRAM ADMINISTRATION

40 TAC §§803.11 - 803.15

The rules are repealed under Texas Labor Code §301.061 and §302.002, which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities.

The repeal affects Texas Labor Code, Titles 4 as well as Texas Government Code Chapter 2308.

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 January 9, 2003.

TRD-200300076

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: January 29, 2003

Proposal publication date: September 13, 2002

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


40 TAC §§803.11 - 803.15

The new rules are adopted under Texas Labor Code §301.061 and §302.002, which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities.

The rules affect Texas Labor Code, Titles 4 as well as Texas Government Code Chapter 2308.

§803.13.Program Objectives.

(a) The following are the program objectives in administering the Skills Development Fund:

(1) to ensure that funds from the program are spent in all areas of this state and expand the state's capacity to respond to workforce training needs;

(2) to develop projects in local workforce development areas through collaboration with the Boards;

(3) to develop projects that at completion of the training will result in wages equal to or greater than the prevailing wage of persons with similar knowledge and experience in that occupation in the local labor market for the participants in the customized training project;

(4) to prioritize the processing of grant requests from local workforce development areas where the unemployment rate is higher than the state's annual average unemployment rate;

(5) to sponsor creation and attraction of high value, high skill jobs for the state that will facilitate the growth of industry and emerging occupations.

(b) In processing requests referenced in subsection (a)(4) of this section, the Director, or his or her designee, shall give priority in processing to grant requests from local workforce development areas where the unemployment rate is higher than the state's annual average unemployment rate. Notwithstanding the priority in processing, the other objectives within this section apply.

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 January 9, 2003.

TRD-200300077

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: January 29, 2003

Proposal publication date: September 13, 2002

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


Subchapter C. PROGRAM ADMINISTRATION AFTER AWARD OF CONTRACT

40 TAC §§803.31 - 803.35

The rules are repealed under Texas Labor Code §301.061 and §302.002, which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities.

The repeal affects Texas Labor Code, Titles 4 as well as Texas Government Code Chapter 2308.

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 January 9, 2003.

TRD-200300078

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: January 29, 2003

Proposal publication date: September 13, 2002

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


40 TAC §§803.31 - 803.36

The new rules are adopted under Texas Labor Code §301.061 and §302.002, which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities.

The rules affect Texas Labor Code, Titles 4 as well as Texas Government Code Chapter 2308.

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 January 9, 2003.

TRD-200300079

John Moore

Assistant General Counsel

Texas Workforce Commission

Effective date: January 29, 2003

Proposal publication date: September 13, 2002

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