TITLE 40.SOCIAL SERVICES AND ASSISTANCE

Part 1. TEXAS DEPARTMENT OF HUMAN SERVICES

Chapter 46. LICENSED PERSONAL CARE FACILITIES CONTRACTING WITH THE TEXAS DEPARTMENT OF HUMAN SERVICES TO PROVIDE RESIDENTIAL CARE SERVICES

The Texas Department of Human Services (DHS) proposes to repeal Subchapter A, concerning scope, §46.1; Subchapter B, concerning definitions, §46.1001; Subchapter C, concerning provider participation, §§46.2001, 46.2005, and 46.2006; Subchapter D, concerning claims payment, §§46.3001, 46.3005, and 46.3007; Subchapter E, concerning provider contracts, §§46.4004 - 46.4006; Subchapter F, concerning records, §46.5001; Subchapter G, concerning support documents, §46.7002; and Subchapter H, concerning administrative and financial errors, §§46.8001 - 46.8003. DHS proposes new Subchapter A, concerning introduction, §46.1 and §46.3; Subchapter B, concerning provider contracts, §§46.11, 46.13, 46.15, 46.17, 46.19, 46.21, 46.23, 46.25, 46.27; Subchapter C, concerning provider requirements, §§46.31, 46.33, 46.35, 46.37, 46.39, 46.41, 46.43, 46.45, 46.47, 46.49, 46.51; and Subchapter D, concerning trust funds, §§46.61, 46.63, 46.65, 46.67, 46.69, 46.71, in its renamed Contracting to Provide Assisted Living and Residential Care Services chapter.

The purpose of the repeals and new sections is to rewrite the chapter in plain language so that the sections are easier to understand. The new sections also incorporate existing policy into rule language. These incorporations of existing policy include: a new definition of personal leave day; a list of additional items the client may request and for which the facility may charge; directions for the facility when a credit balance exists on the client's copayment and room and board account; documentation requirements for a copayment and room and board ledger system; improved trust fund guidelines patterned after nursing facility trust fund guidelines; receipt requirements; clarification of reasons for service suspension to ensure consistency with other Community Care for Aged and Disabled (CCAD) programs; a listing of required financial records the facility is expected to keep for audit purposes, and; a clarification of facility monitoring methods.

Bobby Halfmann, Chief Financial Officer, has determined that, for the first five-year period the proposed sections will be in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the sections.

Bettye M. Mitchell, Deputy Commissioner for Long Term Care, has determined that, for each year of the first five years the sections are in effect, the public benefit anticipated as a result of enforcing the sections will be to have rules that providers, facilities, and the public can more easily navigate and understand. Rule consistency will help service providers and agency staff ensure quality services for clients. Current provider requirements for the Community Based Alternatives (CBA) Assisted Living/Residential Care (AL/RC) program and the Community Care Residential Care (RC) program are in different rule chapters. The proposal incorporates provider requirements for the CBA AL/RC and RC programs into the same rule chapter. There will be no adverse economic effect on small or micro businesses as a result of enforcing or administering the sections, because the proposal does not add any new requirements that would have a negative economic impact on businesses. The majority of policy additions to this chapter are already program policy. New and enhanced requirements for trust funds will also better protect both clients and facilities when a trust fund exists. There is no anticipated economic cost to persons who are required to comply with the proposed sections. There is no anticipated effect on local employment in geographic areas affected by these sections.

Questions about the content of this proposal may be directed to Cathryn Horton at (512) 438-4259 in DHS's Long Term Care section. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-116, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

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

Subchapter A. SCOPE

40 TAC §46.1

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Department of Human Services or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

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

The repeal implements the Human Resources Code, §§22.0001 - 22.038 and §§32.001 - 32.053.

§46.1.Scope

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

Filed with the Office of the Secretary of State on March 14, 2003.

TRD-200301753

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 27, 2003

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


Subchapter B. DEFINITIONS

40 TAC §46.1001

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Department of Human Services or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

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

The repeal implements the Human Resources Code, §§22.0001 - 22.038 and §§32.001 - 32.053.

§46.1001.Definitions of Program Terms.

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

Filed with the Office of the Secretary of State on March 14, 2003.

TRD-200301754

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 27, 2003

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


Subchapter C. PROVIDER PARTICIPATION

40 TAC §§46.2001, 46.2005, 46.2006

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Department of Human Services or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

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

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

§46.2001.Required Services.

§46.2005.Standards for Operation.

§46.2006.Facility Reporting and Notification Requirements.

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

Filed with the Office of the Secretary of State on March 14, 2003.

TRD-200301755

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 27, 2003

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


Subchapter D. CLAIMS PAYMENT

40 TAC §§46.3001, 46.3005, 46.3007

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Department of Human Services or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

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

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

§46.3001.General Billings/Claims Payment Requirements.

§46.3005.Claims Requirements.

§46.3007.Copayment.

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

Filed with the Office of the Secretary of State on March 14, 2003.

TRD-200301756

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 27, 2003

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


Subchapter E. PROVIDER CONTRACTS

40 TAC §§46.4004 - 46.4006

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Department of Human Services or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

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

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

§46.4004.Unit Rate Contracts.

§46.4005.Facility Charges for Hospital/Nursing Facility Stays.

§46.4006.Termination of Contract.

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

Filed with the Office of the Secretary of State on March 14, 2003.

TRD-200301757

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 27, 2003

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


Subchapter F. RECORDS

40 TAC §46.5001

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Department of Human Services or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

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

The repeal implements the Human Resources Code, §§22.0001 - 22.038 and §§32.001 - 32.053.

§46.5001.Record Requirements.

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

Filed with the Office of the Secretary of State on March 14, 2003.

TRD-200301758

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 27, 2003

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


Subchapter G. SUPPORT DOCUMENTS

40 TAC §46.7002

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Department of Human Services or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

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

The repeal implements the Human Resources Code, §§22.0001 - 22.038 and §§32.001 - 32.053.

§46.7002.Reimbursement Methodology for Residential Care.

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

Filed with the Office of the Secretary of State on March 14, 2003.

TRD-200301759

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 27, 2003

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


Subchapter H. ADMINISTRATIVE AND FINANCIAL ERRORS

40 TAC §§46.8001 - 46.8003

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Department of Human Services or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

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

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

§46.8001.Administrative Errors.

§46.8002.List of Administrative Errors.

§46.8003.Financial Errors.

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

Filed with the Office of the Secretary of State on March 14, 2003.

TRD-200301760

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 27, 2003

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


Chapter 46. CONTRACTING TO PROVIDE ASSISTED LIVING AND RESIDENTIAL CARE SERVICES

Subchapter A. INTRODUCTION

40 TAC §46.1, §46.3

The new sections are proposed under the Human Resources Code, Chapters 22 and 32, which authorizes DHS to administer public and medical assistance programs, and under 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.

§46.1.Purpose.

This chapter establishes the requirements for facilities contracting to provide assisted living and residential care services to eligible clients through the Texas Department of Human Services Community Based Alternatives (CBA) Assisted Living/Residential Care (AL/RC) Program and the Community Care for the Aged and Disabled (CCAD) Residential Care (RC) Program. The requirements described in this chapter apply to both CBA AL/RC and CCAD RC, unless otherwise specified in the text.

§46.3.Definitions.

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

(1) Attendant--A facility employee who provides direct care to clients.

(2) Assisted living services--Services provided in an assisted living facility to eligible Texas Department of Human Services (DHS) clients under the Community Based Alternatives (CBA) Assisted Living/Residential Care (AL/RC) or the Community Care for Aged and Disabled (CCAD) Residential Care (RC) programs.

(3) Assisted Living/Residential Care (AL/RC) Program--A 24-hour residential care program for CBA clients.

(4) Case manager--A DHS employee who is responsible for case management activities. Activities include eligibility determination, client registration, assessment and reassessment of client need, service plan development, and intercession on the client's behalf.

(5) Client--A CCAD or CBA client, as defined in Chapter 48 of this title (relating to Community Care for Aged and Disabled), who is eligible to receive services under this chapter.

(6) Community Based Alternatives (CBA)--A Medicaid program that provides services to eligible adults who are aged and/or disabled as an alternative to institutional care in a nursing facility. CBA services are provided in accordance with the waiver provisions of §1915(c) of the Social Security Act (42 U.S.C. 1396n(c)).

(7) Community Care for Aged and Disabled (CCAD)--A group of DHS programs that provides a variety of state-funded and Title XIX-funded community-based services.

(8) Contract--The formal, written agreement between DHS and an assisted living facility to provide services to DHS clients eligible under this chapter in exchange for reimbursement.

(9) Contract manager--A DHS employee who is responsible for the overall management of the contract with the assisted living facility.

(10) Contracted assisted living facility--An assisted living facility that contracts with DHS to provide CBA AL/RC services or CCAD RC services or both. Any reference to facility in this chapter means contracted assisted living facility, unless otherwise specified in the text.

(11) Copayment--The amount of personal income a client must pay to the facility toward the cost of care.

(12) Days--Any reference to days means calendar days, unless otherwise specified in the text. Calendar days include weekends and holidays.

(13) Facility manager--The facility employee who is responsible for the day-to-day operation of a facility.

(14) Licensed assisted living facility--A facility licensed by DHS Long Term Care Regulatory under the Health and Safety Code, Chapter 247.

(15) Personal leave day--A continuous 24-hour period, measured from midnight to midnight.

(16) Representative--The client's spouse, other responsible party, or legal representative.

(17) Residential Care (RC) Program--An assisted living and emergency care program for CCAD clients.

(18) Room and board--The amount of personal income a client must pay to the facility toward the cost of lodging and food. Room and board payments do not apply to the CCAD RC Program.

(19) Signature--The regular signature of the person signing. Initials are not an acceptable substitute for a signature.

(20) Trust fund--The account required when the facility holds the client's personal funds and performs money management at the written request of the client or the client's representative.

(21) Witness--A person who signs to verify distribution to or from a trust fund. A witness is identified in the client file by name, address, and relationship to the client, the client's representative, or the facility. A witness can be any person except:

(A) the person(s) responsible for accounting for the client's trust fund;

(B) the supervisor of the person(s) responsible for the client's trust fund;

(C) a person supervised by the person(s) responsible for the client's trust fund; or

(D) the person(s) who accepts the withdrawn funds.

(22) Working days--Days DHS is open for business.

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

Filed with the Office of the Secretary of State on March 14, 2003.

TRD-200301761

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 27, 2003

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


Subchapter B. PROVIDER CONTRACTS

40 TAC §§46.11, 46.13, 46.15, 46.17, 46.19, 46.21, 46.23, 46.25, 46.27

The new sections are proposed under the Human Resources Code, Chapters 22 and 32, which authorizes DHS to administer public and medical assistance programs, and under 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.

§46.11.Contracting Requirements.

(a) General contracting requirements. A facility must meet all provisions described in this chapter and Chapter 49 of this title (relating to Contracting for Community Care Services).

(b) Assisted living services contracting requirements. To qualify to provide assisted living services under contract with the Texas Department of Human Services (DHS), a facility must comply with the following requirements:

(1) The facility must be licensed as defined in §92.4 of this title (relating to Types of Assisted Living Facilities). The facility must be allowed under licensure to provide the required services described in §46.39 of this chapter (relating to Required Services). Due to the licensure requirements, Type C and Type E facilities are not able to provide the required services under this chapter.

(2) The facility must have a separate contract for each facility that provides assisted living services.

(3) The facility must specify the number of beds for DHS clients in its contract, as follows:

(A) The facility must ensure that the number of beds contracted meets the requirements in §46.13 of this chapter (relating to Housing Options).

(B) The facility must ensure the number of DHS clients served by the facility does not exceed the number of contracted DHS beds.

(C) The facility may adjust the number of beds for DHS clients by contract amendment.

(4) The facility must comply with all other applicable DHS rules and regulations.

(c) Designated rooms. The facility may designate specific rooms or apartments for DHS clients.

(1) In addition to the requirements described in subsection (b)(3) of this section, the facility must list in its contract the specific rooms or apartments designated for DHS clients.

(2) The facility may change the specific rooms or apartments designated for DHS clients by amending its contract.

(d) Disclosure statement requirements. The facility must ensure that the Assisted Living Disclosure Statement, as required by Chapter 92 of this title (relating to Licensing Standards for Assisted Living Facilities), does not conflict with the program requirements.

(e) Client referrals. The facility must accept all DHS referrals unless:

(1) the referral would cause the facility to exceed licensed capacity;

(2) the referral would cause the facility to exceed the number of beds for DHS clients that the facility has specified in its contract;

(3) there are no specific DHS designated rooms or apartments available at the time of the referral; or

(4) the facility is unable to meet the client's needs and DHS has approved the refusal in writing.

(f) Contract assignment. In addition to the procedures described in §49.5 of this title (relating to Contract Assignment), the facility must follow the procedures described in §46.71 of this chapter (relating to Trust Fund Procedures for Client Discharge) for assignment of the trust fund account and records.

§46.13.Housing Options.

(a) Setting. A facility must specify in the contract the type(s) of setting(s) it uses to provide assisted living services according to the following guidelines.

(1) Assisted living apartment. An assisted living apartment setting is a living unit that is a private space with living and sleeping areas, a kitchen, a bathroom, and adequate storage space. The bedroom must be single occupancy, except when the participant requests double occupancy in writing. The living unit must have private kitchen and bath facilities.

(A) Size. Assisted living apartments must have a minimum of 220 square feet, not including the bathroom. Current contracted assisted living apartments that do not meet the square footage requirement may remain at their current size unless the apartment is remodeled. Remodeling includes:

(i) the construction, removal, or relocation of walls and partitions;

(ii) the construction of foundations, floors, or ceiling-roof assemblies;

(iii) the expansion or alteration of safety systems, including:

(I) sprinkler;

(II) fire alarm; and

(III) emergency systems; or

(iv) the conversion of space in a facility to a different use.

(B) Kitchen. The kitchen is an area equipped with a sink, refrigerator, a cooking appliance, adequate space for food preparation, and storage space for utensils and supplies. The cooking appliance must be a stove, microwave, or built-in surface unit. The cooking appliance must be able to be removed or disconnected.

(C) Bathroom. The bathroom must be a separate room in the individual's living area with a toilet, sink, and an accessible bath.

(2) Residential care apartment. A residential care apartment setting is a living unit that is a private space with connected sleeping, kitchen, and bathroom areas and adequate storage space. The bedroom must be double occupancy. The living unit must have private kitchen and bath facilities.

(A) Size. Residential care apartments must have a minimum of 350 square feet of space per client. Indoor common areas used by Texas Department of Human Services (DHS) clients must be included in computing the minimum square footage. The portion of the common area allocated must not exceed usable square footage divided by the maximum number of individuals who have access to the common areas.

(B) Kitchen. The kitchen is an area equipped with a sink, refrigerator, a cooking appliance, adequate space for food preparation, and storage space for utensils and supplies. The cooking appliance must be a stove, microwave, or built-in surface unit. The cooking appliance must be able to be removed or disconnected.

(C) Bathroom. The bathroom must contain a toilet, sink, and an accessible bath.

(3) Residential care non-apartment. A residential care non-apartment setting is a living unit that does not meet either the definition of an assisted living apartment or a residential care apartment. A residential care non-apartment must be double occupancy.

(A) The facility that specifies the residential care non-apartment setting must be a freestanding building not physically attached to another licensed facility.

(B) The facility must be licensed as an assisted living facility with a capacity of 16 or fewer beds.

(4) Personal Care 3. A Personal Care 3 setting is only available in the Community Based Alternatives (CBA) Assisted Living/Residential Care (AL/RC) Program, and must meet the following qualifications:

(A) The facility must be licensed for four to 16 beds in a residential care non-apartment setting.

(B) The facility must provide 60% or more of its CBA clients with a single occupancy bedroom.

(C) The facility must maintain a minimum staffing ratio of one direct care staff member for every:

(i) four clients, including private pay clients, during the day and evening shifts; and

(ii) eight clients, including private pay clients, during the night shift.

(D) Sixty percent or more of the total clients served each month must require one-to-one staff assistance. One-to-one assistance is determined by a value of three or more on the DHS Client Assessment, Review, and Evaluation form in one or more of the following activities of daily living:

(i) transferring;

(ii) eating; or

(iii) toileting.

(b) Occupancy. The facility must provide each client with a private (singe occupancy) or semi-private (double occupancy) living unit.

§46.15.Additional Services and Fees.

(a) The facility may charge the client or the client's representative for additional items or services that the Texas Department of Human Services (DHS) does not require the facility to provide. The client or the client's representative must request and approve the additional items or services in writing.

(b) The facility must not charge the client or the client's representative for any service provided to the client as required by its contract with DHS.

(c) The facility must inform the client or the client's representative of the additional items or services and the charges for those items or services at the following times:

(1) at admission;

(2) before a change in the additional items, services, or charges; and

(3) when the client requests the additional items or services.

(d) The facility may charge the client or the client's representative for additional items or services, including:

(1) private telephone;

(2) television and/or radio for personal use;

(3) cable television services;

(4) personal comfort items, including smoking materials, notions and novelties, and confections;

(5) cosmetics and grooming items and services in excess of those required;

(6) personal clothing;

(7) personal reading material;

(8) gifts purchased on behalf of a client;

(9) flowers and plants;

(10) social events and entertainment outside the scope of the required activities program;

(11) the cost of being a single occupant in a double occupancy room, except for:

(A) a therapeutically required single occupancy room, such as isolation for infection control; or

(B) services provided in the assisted living apartment setting, as defined in §46.13(a)(1) of this chapter (relating to Housing Options);

(12) specially prepared or alternative food requested instead of the food generally prepared by the facility;

(13) the actual amount of the fee charged by the bank for checks written by the client or the client's representative that are returned for non-sufficient funds;

(14) charges for damage to the facility beyond expected wear and tear. The facility must not charge a security/damage deposit to DHS clients; and

(15) pet deposit. A pet deposit does not apply to service animals. A service animal is any guide dog, signal dog, or other animal trained to provide assistance to an individual with a disability.

§46.17.Termination of Contract.

(a) General requirements for termination. The Texas Department of Human Services (DHS) will terminate the facility's contract as described in Chapter 49 of this title (relating to Contracting for Community Care Services) or as otherwise described in this chapter or the facility's contract with DHS.

(b) Physical location. DHS will terminate the facility's contract if the facility loses the right to occupy the physical premises identified as the service delivery location. The contract termination is effective on the date the facility loses its right to occupy the physical premises, unless DHS notifies the facility of a later termination date. DHS will not pay for services provided after the termination date.

(c) Payment suspension. DHS may suspend the facility's payments if the contract is terminated for any reason at any time other than the last day of a month. Payments will remain suspended until the facility has refunded all unearned copayment and room and board payments and all trust fund balances to all clients served.

§46.19.Recordkeeping.

(a) General documentation requirements. The facility must maintain the documentation described in Chapter 49 of this title (relating to Contracting for Community Care Services).

(b) Record retention requirements. The facility must retain records for the time periods described in §69.205 of this title (relating to Contractor's Records).

(c) Daily service delivery documentation. The facility must document the client's daily service delivery.

(1) The daily service delivery documentation must contain the:

(A) client name;

(B) facility vendor number issued by Texas Department of Human Services (DHS);

(C) coverage period of the daily service delivery documentation;

(D) tasks assigned;

(E) tasks performed during the coverage period;

(F) signature of the facility manager or supervisor; and

(G) date of signature of the facility manager or supervisor.

(2) The daily service delivery documentation must be on a single document. If services delivered during the coverage period exceed the space on the single document, the facility may use multiple pages. The daily service delivery document must clearly indicate the number of pages used for the coverage period.

(d) Daily census documentation. The facility must document the daily census of clients.

(1) The daily census documentation must contain the:

(A) name of the facility;

(B) facility vendor number issued by DHS;

(C) coverage period of the daily census documentation;

(D) name of each client served during the coverage period;

(E) daily status of each client for each day during the coverage period. Types of daily status are:

(i) admission;

(ii) discharge;

(iii) present;

(iv) personal leave;

(v) institutional leave;

(vi) emergency care (emergency care applies only to the Community Care for Aged and Disabled (CCAD) Residential Care (RC) program); and

(vii) ineligible emergency care (ineligible emergency care applies only to the CCAD RC program);

(F) total of each type of daily status during the coverage period;

(G) signature of the authorized timekeeper; and

(H) date of the authorized timekeeper's signature.

(2) The daily census documentation must be on a single document. If the number of clients served during the coverage period exceeds the space on the single document, the facility may use multiple pages. The daily census document must clearly indicate the number of pages used for the coverage period.

(e) Financial records. The facility must maintain the following:

(1) records that support billing for payment;

(2) records that document DHS reimbursement in accounting records. The documentation must include:

(A) amount of reimbursement;

(B) voucher number;

(C) warrant number;

(D) date of receipt; and

(E) sufficient direct deposit information to trace deposits through the facility's accounting system; and

(3) additional financial records including, but not limited to:

(A) documents such as deposit slips, bank statement, cancelled checks, program income/client fee ledgers, donation ledgers, and receipts;

(B) purchase orders;

(C) receipts, invoices, statements, and delivery receipts;

(D) journals, ledgers, and other books of account and other supporting documentation;

(E) payroll and tax records;

(F) inventory records for food and other supplies;

(G) timesheets;

(H) Internal Revenue Service and Department of Labor records and forms;

(I) insurance payments and documentation of persons and vehicles covered (for example, medical, liability, fire and casualty, and workmen's compensation);

(J) equipment inventory records;

(K) the facility's internal accounting procedures;

(L) chart of accounts; and

(M) company policies.

(f) Subcontractor records. The facility must maintain invoices, contracts, and service delivery records of all subcontractors. Maintenance of all records to support subcontractor claims is the responsibility of the facility, as the prime contractor.

(g) Registered nurse access. The facility must allow the Home and Community Support Services Agency's registered nurse access to the client's medical and service plan records for use in the assessment.

§46.21.Reimbursement.

(a) The facility must bill for services provided as described in Chapter 49 of this title (relating to Contracting for Community Care Services).

(b) The Texas Department of Human Services (DHS) will pay for eligible services provided and billed in compliance with this chapter.

(c) A unit of service is one billable day of authorized service delivered to a client.

(d) The facility must agree to accept the unit rate authorized by DHS, plus any applicable room and board payments, as payment in full for services required by DHS.

(e) The unit rate reimbursed by DHS includes any copayment. In no case may the combined reimbursement from DHS and the client or the client's representative exceed the unit rate specified for each type of setting.

(f) The facility must deduct the copayment amount from reimbursement claims submitted to DHS.

(g) The facility must not bill DHS for the day of discharge, unless the discharge is due to the death of the client.

(h) The facility must bill the double occupancy (Residential Care Apartment) rate for clients in the single occupancy (Assisted Living Apartment) setting who request double occupancy.

(i) The facility must bill for the balance of the bedhold charge for any clients whose daily copayment is less than the maximum bedhold charge allowed by DHS.

(1) The facility must determine the client's daily copayment amount by dividing the client's monthly copayment charge by the number of days in the month.

(2) The facility must deduct the client's daily copayment amount from the bedhold rate and submit the claim to DHS.

(3) This subsection does not apply to the Community Based Alternatives (CBA) Assisted Living/Residential Care (AL/RC) Program.

(j) The facility may bill DHS for emergency care provided to clients for:

(1) up 60 days per authorization for eligible clients; or

(2) five days for a client ineligible for emergency care.

(k) The facility must not bill for services provided before or after the authorized effective dates for CBA AL/RC or Community Care for Aged and Disabled (CCAD) Residential Care (RC) services, as those dates are determined by DHS.

(l) When the facility requests a Texas Index of Level of Effort (TILE) reset, the facility may bill DHS at the new TILE level effective the date of the TILE assessment. The facility may request only two TILE resets during each calendar year for each CBA client for the following time periods:

(1) January through June; and

(2) July through December.

(m) CCAD RC services will be reimbursed at the double occupancy rate, regardless of the actual occupancy.

§46.23.Monitoring Reviews.

Monitoring reviews are conducted through an on-site review and in accordance with Chapter 49 of this title (relating to Contracting for Community Care Services). The Texas Department of Human Services (DHS) reviews records on a regular and systematic basis, and as often as DHS deems necessary. DHS conducts the following types of monitoring:

(1) Compliance monitoring. Compliance monitoring is a review to determine if the facility is delivering services according to the rules in this chapter. Compliance monitoring includes:

(A) review of consumer satisfaction surveys conducted;

(B) review of client records;

(C) interviews with clients and staff;

(D) observation of clients and staff; and

(E) consultations with others as appropriate.

(2) Fiscal monitoring. Fiscal monitoring is a review of documentation that supports the facility's billing. The facility is liable for recoupment of payment if monitoring errors indicate the monthly claims do not correspond with the daily census documentation and daily service delivery documentation. Fiscal monitoring includes:

(A) Financial errors. DHS applies the error to the entire unit of service. Financial errors include:

(i) The facility is reimbursed for services, but the daily census documentation and the daily service delivery documentation are missing for the period for which services are reimbursed. DHS applies the error to the total number of units reimbursed for the billing period for which forms are missing.

(ii) The facility is reimbursed for units that exceed the units recorded on daily census documentation and daily service delivery documentation. DHS applies the error to the total number of units reimbursed in excess of units recorded.

(iii) The facility is reimbursed for units of service and the client did not receive services. DHS applies the error to the total number of units reimbursed for the days the client did not receive services.

(iv) The facility is reimbursed for units of service and the client was Medicaid ineligible. DHS applies the error to the total number of units reimbursed for the days the client was Medicaid ineligible. This does not apply to the Community Care for Aged and Disabled (CCAD) Residential Care (RC) program.

(B) Administrative errors. Documentation is reviewed for administrative errors as they exist at the time DHS staff arrive to conduct the monitoring review. DHS applies the error to the administrative portion of the unit of service. The administrative portion is 12% of the paid unit rate. Administrative errors include:

(i) The facility enters a date of signature on the daily census documentation that is before the date the last day services are provided. DHS applies the error to the total number of units reimbursed after the signature date.

(ii) The facility fails to sign the daily census documentation. DHS applies the error to the total number of units reimbursed on the unsigned form.

(iii) The facility fails to enter a date of signature on the daily census documentation to certify total number of units provided to the client. DHS applies the error to the number of units reimbursed on the undated form.

(iv) The facility corrects the date of signature on the daily census documentation, but fails to initial the correction. DHS applies the error to the total number of units reimbursed after the earliest signature date.

(v) The facility uses a signature stamp on the daily census documentation, but fails to initial the stamped signature. DHS applies the error to the total number of units reimbursed on the signature stamped form.

(vi) The facility makes an illegible entry or illegible correction to any portion of the record of time on the daily census documentation. DHS applies the error to the total number of units reimbursed for the days in which entries are illegible.

(vii) The facility enters an illegible date of signature or makes an illegible correction to the date of signature on the daily census documentation. DHS applies the error to the total number of units on the form.

(viii) The facility fails to complete the entire daily census documentation in ink, as described in §49.11(d) of this title (relating to Record Documentation Requirements). DHS applies the error to the total number of units reimbursed that were not completed in ink.

(ix) The facility uses a method other than crossing out and initialing to change an entry on the daily census documentation. DHS applies the error to the total number of units reimbursed that were corrected in a manner other than crossing out and initialing.

(x) The facility fails to list the client on the daily census documentation, but the client was listed on the daily service delivery documentation. DHS applies the error to the total number of units reimbursed for the period the client was left off the daily census documentation.

(xi) The facility leaves the daily status blank on the daily census documentation, but daily activity can be verified on the daily service delivery documentation. DHS applies the error to the total number of units reimbursed for which the daily status is left blank on the daily census documentation.

§46.25.Complaints.

A facility must comply with the complaint procedures described in §49.13 of this title (relating to Client Rights and Responsibilities) and §49.14 of this title (relating to Complaint Procedures).

§46.27.Reimbursement Methodology for Residential Care.

(a) General requirements. The Texas Department of Human Services (DHS), or its designee, applies the general principles of cost determination as specified in §20.101 of this title (relating to Introduction).

(b) Cost reporting.

(1) Providers must follow the cost-reporting guidelines as specified in §20.105 of this title (relating to General Reporting and Documentation Requirements, Methods, and Procedures).

(2) All contracted providers must submit a cost report unless the number of days between the date the first DHS client received services and the provider's fiscal year end is 30 days or fewer.

(3) The provider may be excused from submitting a cost report if circumstances beyond the control of the provider make cost report completion impossible, such as the loss of records due to natural disasters or removal of records from the provider's custody by any regulatory agency. Requests to be excused from submitting a cost report must be received by the Texas Health and Human Services Commission's (HHSC) Rate Analysis department before the due date of the cost report.

(c) Reimbursement determination.

(1) Reporting and verification of allowable costs.

(A) Providers are responsible for reporting only allowable costs on the cost report, except where cost report instructions indicate that other costs are to be reported in specific lines or sections. Only allowable cost information is used to determine recommended reimbursements. DHS or its designee excludes from reimbursement determination any unallowable expenses included in the cost report and makes the appropriate adjustments to expenses and other information reported by providers. The purpose is to ensure that the database reflects costs and other information that are necessary for the provision of services and that are consistent with federal and state regulations.

(B) Individual cost reports may not be included in the database used for reimbursement determination if:

(i) there is reasonable doubt as to the accuracy or allowability of a significant part of the information reported; or

(ii) an auditor determines that reported costs are not verifiable.

(C) When material pertinent to proposed reimbursements is made available to the public, the material will include the number of cost reports eliminated from reimbursement determination for the reason stated in subparagraph (B)(i) of this paragraph.

(2) Residential care reimbursement. Recommended per diem reimbursement for residential care is determined as follows.

(A) Reported allowable expenses are combined into four cost areas:

(i) attendant;

(ii) other direct care;

(iii) facility; and

(iv) administration and transportation.

(B) Facility, transportation (vehicle), and administration expenses are lowered to reflect expenses for a provider at the lower of:

(i) 85% occupancy rate; or

(ii) the overall average occupancy rate for licensed beds in facilities included in the database during the cost-reporting periods included in the base. The occupancy adjustment is applied if the provider's occupancy rate is below 85% or the overall average, whichever is lower. The occupancy adjustment is determined by the individual provider occupancy rate being divided by .85 or the average occupancy rate of all providers in the database.

(C) Payroll taxes and employee benefits are allocated to each salary line item on the cost report on a pro rata basis based on the portion of that salary line item to the amount of total salary expense for the appropriate group of staff. Employee benefits will be charged to a specific salary line item if the benefits are reported separately. The allocated payroll taxes and employee benefits are Federal Insurance Contributions Act or Social Security, Medicare contributions, Workers' Compensation Insurance, the Federal Unemployment Tax Act, and the Texas Unemployment Compensation Act.

(D) Allowable salaries paid to the director, administrator, assistant administrator, owner, or partner who work for the Residential Care contracted provider may be limited to the 90th percentile of an array of salary costs for the director, administrator, assistant administrator, owner, or partner.

(E) The attendant cost area from subparagraph (A)(i) of this paragraph will be calculated as specified in §20.112 of this title (relating to Attendant Compensation Rate Enhancement).

(F) The following applies to the cost areas from subparagraph (A)(ii) - (iv) of this paragraph:

(i) Each provider's total reported allowable costs, excluding depreciation and mortgage interest, are projected from the historical cost-reporting period to the prospective reimbursement period as described in §20.108 of this title (relating to Determination of Inflation Indices). The prospective reimbursement period is the period of time that the reimbursement is expected to be in effect.

(ii) Cost area per diem expenses are calculated by dividing total reported allowable costs for each cost area by the total days of service. Cost area per diem expenses are rank ordered from low to high to produce projected per diem expense arrays.

(iii) Reimbursement is determined by selecting from each cost area the median day of service and the corresponding per diem expense times 1.07. The resulting cost area amounts are totaled to determine the per diem reimbursement.

(3) Exceptions to the reimbursement determination methodology. Reimbursement may be adjusted in accordance with §20.109 of this title (relating to Adjusting Reimbursement When New Legislation, Regulations, or Economic Factors Affect Costs) when new legislation, regulations, or economic factors affect costs.

(d) Authority to determine reimbursement. The authority to determine reimbursement is specified in §20.101 of this title.

(e) Allowable and unallowable costs. In determining whether a cost is allowable or unallowable, providers must follow the guidelines as specified in §20.102 of this title (relating to General Principles of Allowable and Unallowable Costs) and §20.103 of this title (relating to Specifications for Allowable and Unallowable Costs). In addition to these sections, the following allowable and unallowable costs are applicable in the Residential Care (RC) program.

(1) Allowable costs. Medical supplies required to provide residential care services are allowable. Allowable medical costs include supply costs associated with the administration of medications, such as medication cups, syringes for insulin injections, stethoscopes, blood pressure cuffs, and thermometers.

(2) Unallowable costs. Unallowable costs include prescription drugs; non-legend drugs; medical records costs; and compensation for physicians, pharmacists, and medical directors.

(f) Reporting revenue. Revenues must be reported on the cost report in accordance with §20.104 of this title (relating to Revenues).

(g) Reviews and field audits of cost reports. Desk reviews or field audits are performed on cost reports of all contracted providers. The frequency and nature of the field audit are determined by DHS or its designee to ensure the fiscal integrity of the program. Desk reviews and field audits will be conducted in accordance with §20.106 of this title (relating to Basic Objectives and Criteria for Audit and Desk Review of Cost Reports), and providers will be notified of the results of a desk review or a field audit in accordance with §20.107 of this title (relating to Notification of Exclusions and Adjustments). Providers may request an informal review and, if necessary, an administrative hearing to dispute an action taken under §20.110 of this title (relating to Informal Reviews and Formal Appeals).

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

Filed with the Office of the Secretary of State on March 14, 2003.

TRD-200301762

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 27, 2003

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


Subchapter C. PROVIDER REQUIREMENTS

40 TAC §§46.31, 46.33, 46.35, 46.37, 46.39, 46.41, 46.43, 46.45, 46.47, 46.49, 46.51

The new sections are proposed under the Human Resources Code, Chapters 22 and 32, which authorizes DHS to administer public and medical assistance programs, and under 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.

§46.31.Staff Requirements.

The facility must have staff as described in §92.41 of this title (relating to Standards for Type A, Type B, and Type E Assisted Living Facilities).

§46.33.Staff Training.

(a) General training requirements. The facility must provide all staff with training as described in §92.41 of this title (relating to Standards for Type A, Type B, and Type E Assisted Living Facilities).

(b) Facility manager. In addition to the requirements described in subsection (a) of this section, someone in the facility with knowledge of the contracted programs must train the facility manager on the following topics before the facility manager can assume duties:

(1) service-specific training for the Community Care for Aged and Disabled (CCAD) Residential Care (RC) or Community Based Alternatives (CBA) Assisted Living/Residential Care (AL/RC) programs or both, as applicable; and

(2) client characteristics and needs.

(c) Attendants. An attendant is a facility employee who provides direct care to clients.

(1) Initial training. In addition to the requirements found in subsection (a) of this section, the facility must provide the attendant with initial training on performing authorized tasks as identified on the Texas Department of Human Services' Health Assessment/Individual Service Plan form before the attendant can assume duties.

(2) Ongoing training. The facility must evaluate the attendant's ongoing performance and provide training as follows:

(A) assess the ongoing performance and training needs of each attendant;

(B) develop a plan for correcting deficiencies in attendant performance; and

(C) train the attendant on the areas of identified deficiencies according to the performance plan.

(d) Training documentation. The facility must maintain training documentation, including the:

(1) name(s) of attendee(s);

(2) trainer;

(3) topics covered; and

(4) date the training was provided.

(e) Performance evaluation documentation. The facility must maintain performance evaluation documentation, including the:

(1) name of the attendant;

(2) name of the person evaluating the attendant's performance;

(3) date of the performance evaluation;

(4) results of the performance evaluation, including any specific areas of deficiency identified;

(5) training plan to remedy the deficiencies; and

(6) date the training plan was implemented.

§46.35.Copayment and Room and Board.

(a) Amount. The facility must collect the copayment and room and board amounts indicated on the Texas Department of Human Services' (DHS's) Notification of Community Care Services form or DHS's Notification of Community Based Alternatives (CBA) Services form with the following exceptions:

(1) Room and board charges do not apply to the Community Care for Aged and Disabled (CCAD) Residential Care (RC) Program.

(2) Clients who receive emergency care do not pay a copayment.

(3) Emergency care services do not apply to the Community Based Alternatives (CBA) Assisted Living/Residential Care (AL/RC) Program.

(b) Due date. The facility must collect the entire copayment and room and board for the current month on or before the end of the month.

(1) If the end of the month falls on a weekend or a holiday, the facility must collect the entire copayment and room and board on the first working day thereafter.

(2) If the client or the client's representative fails to pay the entire copayment and room and board by the due date, the facility must notify the client or the client's representative and the case manager in writing no later than the first working day after the due date.

(c) Credit balances.

(1) A credit balance is an amount due to the client or the client's representative when there is an overpayment by the client or the client's representative.

(2) The facility must handle credit balances as follows:

(A) The facility must contact the client or the client's representative within 14 days of receipt of the payment resulting in a credit balance.

(B) The facility must refund the credit balance the month the facility receives the payment that results in a credit balance, and offer the client or the client's representative the following options:

(i) the client or the client's representative provides the corrected payment, and the facility returns the original payment;

(ii) the facility provides the client or the client's representative with a refund of the credit balance; or

(iii) the client or the client's representative has the credit balance applied to the following month's payment. If the client or the client's representative pays an incorrect amount the following month, the facility must issue a refund check for the credit balance within 14 days of receipt of the incorrect payment.

(d) Copayment and room and board receipts.

(1) The facility must provide receipts for all copayment and room and board payments received from or on behalf of clients at the time the payment is received.

(2) The facility must keep a copy of all copayment and room and board receipts.

(3) Copayment and room and board receipts must contain the following:

(A) the name of the client;

(B) the name of the person making the payment (if not the client);

(C) the month, day, and year the payment was received;

(D) the total amount collected;

(E) the specific amounts of copayment and room and board collected;

(F) the month and year of the coverage period for the payment received; and

(G) the specific information on any credits applied, including the:

(i) specific amount credited;

(ii) month and year of the coverage period of the credit;

(iii) type of payment credited; and

(iv) reason for the credit.

(e) Copayment and room and board ledger. The facility must maintain a copayment and room and board ledger system for each client.

(1) The facility may keep the copayment and room and board ledger systems as separate ledgers, or the facility may combine both ledgers into a single ledger system. If the facility chooses to keep a single ledger system, a separate entry must be made for each copayment and room and board entry.

(2) The copayment and room and board ledger system must reflect the following:

(A) all charges for copayment and room and board by client;

(B) all payments for copayment and room and board made by or on behalf of a client;

(C) all credits for copayment and room and board by client; and

(D) a running balance by client.

(3) The facility must record all activities on the copayment and room and board ledger system within 14 days of occurrence.

(4) The copayment and room and board ledger must be maintained in accordance with generally accepted accounting principles (GAAP).

(f) Refunds upon discharge. The facility must refund the client's copayment and room and board for the remaining days of the month following the date of discharge or death. The refund must be made within five working days of awareness that the client will be discharged or is deceased.

§46.37.Service Initiation.

(a) Negotiated move-in date. The facility must negotiate a move-in date with the Texas Department of Human Services (DHS) case manager and the client or the client's representative.

(b) Reserved space. The facility must reserve a living unit for three days from the agreed upon move-in date for each referred client. The facility may request another referral after three days if the move-in date is not re-negotiated.

(c) Client and facility agreement. The facility must have a written agreement with the client or the client's representative. Both parties must sign the written agreement before or at the time of admission. The written agreement must include the following:

(1) bedhold policies for hospital and nursing facility stays;

(2) personal leave policies and charges;

(3) eviction procedures;

(4) all available services in the facility; and

(5) charges for services not paid by DHS and charges not included in the facility's basic daily rate, as described in §46.15 of this chapter (relating to Additional Services and Fees).

(d) Initial health assessment. The facility must complete a health assessment and develop an individual service plan with the client. The facility must provide the client or the client's representative with a copy of the health assessment and individual service plan. The health assessment and individual service plan must be completed:

(1) within 72 hours of admission to the facility;

(2) on DHS's Health Assessment/Individual Service Plan form; and

(3) by the appropriate facility staff:

(A) The facility manager or facility nurse must complete DHS's Health Assessment/Individual Service Plan form.

(B) A registered nurse must complete the medication administration section of DHS's Health Assessment/Individual Service Plan form for Community Based Alternatives (CBA) Assisted Living/Residential Care (AL/RC) clients.

§46.39.Required Services.

(a) Service delivery. The facility must provide services according to the Texas Department of Human Services' (DHS's) Health Assessment/Individual Service Plan form completed for the client.

(b) Required services. Services include:

(1) Personal care. The facility must provide or assist with personal care services identified on DHS's Health Assessment/Individual Service Plan form completed for the client. Personal care services are activities related to the care of the client's physical health that include at a minimum:

(A) bathing;

(B) dressing;

(C) grooming;

(D) routine hair and skin care;

(E) exercising;

(F) toileting;

(G) medication administration, including injections. This does not apply to the Community Care for Aged and Disabled (CCAD) Residential Care (RC) Program;

(H) transferring/ambulating. This does not apply to clients residing in a Type A assisted living facility;

(I) twenty-four-hour supervision. The facility must conduct and document in the client file checks or visits to each client to ensure that each client is safe and well. The checks or visits must be made as identified on DHS's Health Assessment/Individual Service Plan form completed for the client; and

(J) meal services. The facility must:

(i) plan, cook, and serve at least three meals per day. The meals must;

(I) supply 100% of the United States Department of Agriculture's recommended dietary allowance (RDA) for adults; and

(II) provide adequate nutrition, and achieve and sustain the client's health;

(ii) provide therapeutic medical diets as prescribed by the client's physician;

(iii) offer dietary counseling and nutrition education to the client;

(iv) modify food texture, including:

(I) chopping, grinding, mashing, and pureeing foods for clients who have trouble chewing; and

(II) cutting up food into bite size pieces for clients who have trouble cutting food; and

(v) assist with eating, including:

(I) assistance with spoon-feeding in instances when the client is temporarily ill;

(II) bread buttering; and

(III) opening containers or pouring liquids for clients with hand deformities, paralysis, or hand tremors.

(2) Home management. The facility must provide or assist with activities related to housekeeping that are essential to the client's health and comfort, including:

(A) changing bed linens;

(B) housecleaning;

(C) laundering;

(D) shopping;

(E) storing purchased items in the client's living unit. This includes medical supplies delivered to Community Based Alternatives (CBA) Assisted Living/Residential Care (AL/RC) clients; and

(F) washing dishes.

(3) Transportation and escort.

(A) The facility must provide the client with transportation, escort, or both to:

(i) local community shopping areas where a client may purchase items to meet his or her personal needs according to the facility's published schedule;

(ii) recreational activities, field/community trips according to the facility's published schedule; and

(iii) the nearest available medical provider for medical appointments, therapies, and other medical care.

(B) The facility must make arrangements for other transportation for the client to the medical care provider of the client's choice if the client's medical provider is not the nearest available provider.

(4) Social and recreational activities. The facility must provide a minimum of four scheduled social and recreational activities per week.

(A) Activity requirements. The social and recreational activities must be:

(i) planned to meet the social needs and interests of the clients; and

(ii) listed on a monthly calendar that is posted in plain view at the facility at least one week in advance.

(B) Types of activities. Social and recreational activities include:

(i) activities that require group and client-initiated activities;

(ii) opportunities to interact with other people;

(iii) interaction, cultural enrichment, educational, or recreational activities; and

(iv) other social activities on site or in the community.

(5) Participation in the client assessment. The facility must designate someone who is familiar with the CBA AL/RC client's needs and service plan to participate with the client's assessment. The assessment will determine the Texas Index of Level of Effort (TILE) at both the annual assessment, and a requested re-TILE. Participation in the client assessment does not apply to the CCAD RC Program.

(6) Emergency care. The facility must provide emergency care as authorized by the case manager.

(A) Emergency care is assisted living services provided to clients while the case manager seeks a permanent living arrangement.

(B) Emergency care services do not apply to the CBA AL/RC program.

§46.41.Service Plan Changes.

(a) The facility must complete a new Texas Department of Human Services Health Assessment/Individual Service Plan form anytime there is a need for a change in the client's service plan.

(b) The facility must implement service plan changes within seven days from the assessment date.

§46.43.Required Notifications.

(a) The facility must notify the Texas Department of Human Services (DHS) when one of the following happens:

(1) significant changes in the client's health and/or condition;

(2) the client temporarily enters an institution;

(3) serious occurrences or emergencies involving the client or facility staff;

(4) discharge of a client who threatens the health or safety of himself, herself, or other clients in the facility;

(5) the client or the client's representative requests that services end;

(6) the client refuses to comply with the service plan;

(7) the client racially discriminates against facility staff or other residents;

(8) the client sexually harasses facility staff or other residents;

(9) the client or the client's representative fails to pay copayment;

(10) the client uses ten personal leave days in the current calendar year;

(11) the client or the client's representative requests to move to another facility; or

(12) when the facility believes that a client's functional needs have changed such that it will impact the client's Texas Index of Level of Effort (TILE). This only applies to facilities providing assisted living services under the Community Based Alternatives (CBA) Assisted Living/Residential Care (AL/RC) Program that participate in the attendant compensation rate option.

(b) The facility must notify the client's DHS case manager orally or by facsimile about the change no later than one DHS workday after the change happens. If the facility's first notification is oral, the facility must send written notification to the case manager within five working days of the initial notification.

§46.45.Suspension of Services.

(a) The facility must suspend services when one of the following happens:

(1) the client dies;

(2) the client moves from the facility;

(3) the client is discharged because he threatens the health or safety of himself or other clients in the facility;

(4) the client is permanently admitted to an institution;

(5) the Texas Department of Human Services (DHS) enforces sanctions against the facility by terminating the contract;

(6) the client's eligibility is denied; or

(7) the case manager requests that services be suspended or terminated.

(b) If the facility suspends services, the facility must notify the DHS case manager no later than one working day after the suspension of services.

(1) The facility must notify the client's case manager orally or by facsimile about the reason for service suspension.

(2) If the facility's first notification is oral, the facility must send written notification to the case manager within five working days of the initial notification.

§46.47.Institutional Leave.

(a) Institution. An institution is defined as a hospital, nursing facility, state school, state hospital, or intermediate care facility serving persons with mental retardation or a related condition.

(b) Institutional leave. Institutional leave is when clients are absent from the facility because they temporarily enter an institution.

(c) Bedhold. The facility must hold the client's bed:

(1) for a Community Care for Aged and Disabled (CCAD) Residential Care (RC) client for:

(A) 60 days if the client is in a hospital; or

(B) 30 days if the client is in any other type of institution; and

(2) for a Community Based Alternatives (CBA) Assisted Living/Residential Care (AL/RC) client for 60 days if the client is in any type of institution.

(d) Bedhold charges. The facility must charge the client or the client's representative for bedhold during institutional leave.

(1) Bedhold charges for a CCAD RC client are the maximum amount established by the Texas Department of Human Services (DHS).

(2) Bedhold charges for a CBA AL/RC client are the room and board charge.

(e) Refund of copayment. The facility must not charge the client or the client's representative more than the maximum amount allowed by DHS for bedhold. The facility must refund the client's copayment for the days the client uses institutional leave.

(1) The facility must refund any copayment paid by a CCAD RC client or the client's representative that is in excess of the bedhold amount. If the client's copayment amount is less than the bedhold charge, DHS pays the difference as described in §46.21 of this chapter (relating to Reimbursement).

(2) The facility must refund all copayments paid by a CBA AL/RC client or the client's representative.

(3) The refund must be made according to the procedures in §46.35(c) of this chapter (relating to Copayment and Room and Board).

(f) Billing during institutional leave. The facility must charge the client or the client's representative only the bedhold amount for the date of admission to an institution. The facility must charge the client or the client's representative the full rate for date of return.

(g) Notification of institutional leave. The facility must notify the DHS case manager of any institutional leave as described in §46.43 of this chapter (relating to Required Notifications).

§46.49.Personal Leave.

(a) Personal leave. A client is entitled to 14 days of personal leave per calendar year.

(b) Client charges. The facility must collect the entire copayment and room and board charges for all personal leave days.

(c) Texas Department of Human Services (DHS) payment during personal leave. The facility must not bill DHS for more than 14 days of personal leave taken by the client each calendar year.

(d) Notification of personal leave days. The facility must notify the DHS case manager of personal leave days as described under §46.43 of this chapter (relating to Required Notifications).

(e) Charge for exceeding personal leave days. The client is responsible for all charges for services if he exceeds the allowable limit of personal leave days.

§46.51.Client Terminations.

(a) Client discharge. The facility must obtain prior written approval from the Texas Department of Human Services (DHS) before discharging a client, except when the client threatens the health or safety of others or himself. The facility must notify the DHS case manager as described under §46.45 of this chapter (relating to Suspension of Services).

(b) Assistance with move. The facility must help the client prepare for transfer or discharge.

(c) Refunds. The facility must refund the following:

(1) copayment and room and board, as described in §46.35(f) of this chapter (relating to Copayment and Room and Board); and

(2) trust fund balances, as described in §46.71 of this chapter (relating to Trust Fund Procedures for Client Discharge).

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

Filed with the Office of the Secretary of State on March 14, 2003.

TRD-200301763

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 27, 2003

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


Subchapter D. TRUST FUNDS

40 TAC §§46.61, 46.63, 46.65, 46.67, 46.69, 46.71

The new sections are proposed under the Human Resources Code, Chapters 22 and 32, which authorizes DHS to administer public and medical assistance programs, and under 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.

§46.61.Trust Fund Management.

(a) Clients have the right to:

(1) manage their financial affairs;

(2) request that the facility manage their financial affairs; or

(3) designate another person to manage their financial affairs.

(b) The facility must not require clients to deposit their personal funds with the facility. The facility must:

(1) have the client's or the client's representative's written authorization to manage the client's personal funds; and

(2) upon written request of the client or the client's representative, hold, safeguard, manage, and account for the personal funds of the client deposited with the facility.

(c) The facility must provide each client or client's representative a written statement of the trust fund rights and responsibilities regarding the client's financial affairs at the time of admission. The statement must include the following:

(1) the facility cannot require clients to deposit their personal funds with the facility;

(2) upon written authorization, the facility must hold, safeguard, manage, and account for the personal funds of the client deposited with the facility; and

(3) any charge by the facility for handling a client's personal funds is included in the facility's basic rate.

§46.63.Trust Fund Bank Account.

(a) Bank account. The contacted assisted living facility must keep funds received from or on behalf of a client for a trust fund in a separate bank account from the facility's operating funds. The account must be identified as "Trustee, (Name of Facility), Client's Trust Fund Account."

(b) Commingled funds. A facility may commingle the trust funds of private-pay clients and Texas Department of Human Services (DHS) clients.

(1) Each private-pay client or the client's representative whose funds are commingled with DHS client funds must sign and date a permission form upon admission or at the time of request for trust fund services. The permission form must include:

(A) permission for the facility to commingle the personal funds of the private pay client with DHS clients;

(B) permission for the facility to maintain trust fund records of private-pay clients in the same manner as the DHS client's trust fund records; and

(C) a provision allowing inspection of the private-pay client's trust fund records by DHS staff.

(2) The facility must keep financial records of private pay clients with commingled funds in the same manner as the financial records of DHS clients as specified in this chapter.

(c) Banking charges.

(1) The facility may use the following type of checking accounts for the trust fund:

(A) a pooled checking account, which is a single checking account that contains all the personal funds received from each client utilizing the trust fund;

(B) a client-choice individual checking account, which is a single checking account that contains only the personal funds of a single client. The client or the client's representative must request this type of trust fund in writing; or

(C) facility-choice individual checking account, which is a single checking account that contains only the funds of a single client. This type of trust fund is set up for the convenience of the facility.

(2) The facility is responsible for bank fees for the trust fund kept in a pooled checking account or in facility-choice individual checking accounts. The facility must not charge these fees to the client or the client's representative. The facility may report these fees as allowable costs on its cost report.

(3) The client or the client's representative is responsible for bank fees for the trust fund kept in client-choice individual checking accounts.

(4) The facility must not charge the client or the client's representative for the administrative handling of any allowable type of checking account. The facility may report these costs on its cost report.

(d) Interest earned. The facility must distribute the interest earned on the pooled checking account to all clients utilizing the trust fund. The facility must prorate the actual interest earned to each client's account:

(1) at the time the financial institution pays the interest; and

(2) on the basis of the client's balance at the time the financial institution pays the interest.

§46.65.Trust Fund Transactions.

(a) Transactions.

(1) The facility must keep records of all trust fund transactions.

(2) Facility staff must record on the client's trust-fund ledger or deposit/withdrawal document at least the following:

(A) the date and amount of each deposit;

(B) the source of each deposit;

(C) the date and amount of each withdrawal;

(D) the reason for each withdrawal;

(E) the name of the person or entity who accepted the withdrawn funds; and

(F) the balance after each transaction.

(3) The client or the client's representative must sign for each withdrawal transaction at the time of the transaction.

(A) The signature must be on the trust-fund ledger, deposit/withdrawal document, or trust fund receipt.

(B) At least one witness must sign for each withdrawal transaction if the client or the client's representative cannot sign.

(C) A signature is not required if the payment meets the definition of a recurring payment as described in subsection (c) of this section.

(4) The facility must record transactions within 14 days of occurrence.

(b) Bulk purchases. The facility may make bulk purchases for items used by multiple clients.

(1) The bulk purchase must be traceable to individual clients.

(2) The receipt for the bulk purchase must show the following:

(A) the names of the clients for whom the purchase was made; and

(B) the portion of the total price charged to each client.

(3) The facility must not charge the client or the client's representative more than the actual cost of the client's portion of items that are purchased in bulk.

(c) Recurring payments.

(1) The facility must obtain the client's or the client's representative's written request and authorization to make recurring payments on behalf of the client. The written authorization must include the:

(A) name of the business or entity to which the recurring payment is made;

(B) amount of the recurring payment. If the recurring payment is not a set amount, the authorization must include the method for determining the amount of the recurring payment;

(C) date the payment will begin; and

(D) signature and signature date of the client or the client's representative.

(2) The client or the client's representative must request and authorize the facility to stop recurring payments on behalf of the client.

(A) The authorization may be oral or written.

(B) The facility must document the request, including the:

(i) name of the business or entity to which the recurring payment is made; and

(ii) date the payment will stop.

(3) The facility is not required to have a receipt for recurring payments made on behalf of the client.

(d) Petty cash fund.

(1) A petty cash fund is part of the trust fund kept on hand in cash by the facility. The petty cash fund is used for disbursement to clients for the purchase of minor items.

(2) The petty cash fund is based upon the type of trust fund account the facility keeps and is:

(A) a single pooled petty cash fund; or

(B) individual petty cash funds for each client.

(3) The facility must keep the petty cash fund locked.

(4) The facility must set a dollar limit for petty cash transactions.

(A) The facility must document:

(i) the dollar limit of petty cash transactions; and

(ii) a list of any exceptions to the petty cash transaction limit, if applicable.

(B) The facility must follow the procedures in subsection (a) of this section for withdrawals that exceed the petty cash transaction limit.

(5) The facility must keep records of all petty cash fund transactions. The petty cash fund record must be a:

(A) petty cash fund ledger; or

(B) petty cash fund receipt.

(6) A petty cash fund ledger or receipt must include the:

(A) name of the client;

(B) date of the withdrawal;

(C) amount of the withdrawal; and

(D) signature of client or the client's representative, or at least one witness if the client or the client's representative cannot sign.

(7) The facility must use the following guidelines to replenish the petty cash fund:

(A) Count the money in the petty cash fund.

(B) Determine the difference between amount in the petty cash fund and the amount needed in the petty cash fund.

(C) Cash a check for the difference between the amount in the petty cash fund and the amount needed in the petty cash fund.

(i) Write the check for cash on the appropriate checking account, either the:

(I) pooled trust fund checking account; or

(II) individual client trust fund checking account.

(ii) Indicate "petty cash fund" in the "memo" line of the check.

(D) Put the cash in the petty cash fund.

(8) The facility must reconcile the petty cash fund at least once every 14 days.

(9) The facility must follow the requirements for transactions in subsection (a) of this section to post petty cash fund transactions to the trust fund ledger. However, the client's or the client's representative's signature is not required on the trust fund ledger or trust fund receipt if the client's or the client's representative's signature is on the petty cash fund ledger or receipt.

(e) Receipts.

(1) A trust fund receipt is required when a direct payment is made from the client's trust fund. The facility may use printed receipts from vendors as trust fund receipts only if:

(A) all elements from paragraph (4) of this subsection are present; or

(B) any missing elements from paragraph (4) of this subsection are added.

(2) A trust fund receipt is required when a payment is received by the facility on behalf of a client. This is not applicable to funds direct deposited to the trust fund account.

(3) A trust fund receipt is not required when the client or the client's representative makes a direct purchase with funds withdrawn from the trust fund. The withdrawn funds must meet the requirements listed in subsection (a) of this section.

(4) A trust fund receipt must contain the:

(A) name of the client;

(B) month, day, and year the receipt was written or created;

(C) total amount of money spent or received for the client;

(D) specific item(s) purchased; and

(E) name of the business or entity from which the purchase was made or the payment received.

(5) A trust fund receipt may contain the signature of the client or the client's representative for payments made from the trust fund. At least one witness must sign for each payment made if the client or the client's representative cannot sign.

(f) Limitations on withdrawals. The facility must not use the client's personal funds to purchase any item or service that the Texas Department of Human Services requires the facility to provide. The facility must purchase additional items or service with the client's personal funds only as described in §46.15 of this chapter (relating to Additional Services and Fees).

§46.67.Trust Fund Documentation.

(a) Accounting and records.

(1) The facility must keep written records of all financial transactions involving the client's personal funds that the facility is holding, safeguarding, and accounting.

(2) The facility must keep the accounting records in accordance with generally accepted accounting principles (GAAP).

(3) The facility must keep records in accordance with its fiduciary duties for client trust funds.

(4) The facility must include at least the following in the accounting records:

(A) each client's name;

(B) identification of each client's representative or person assigned to receive the client's income, if any;

(C) admission date;

(D) each client's earned interest, if any;

(E) documentation of each transaction; and

(F) receipts for purchases and payments, including cash register tapes or sales statements from a seller.

(b) Quarterly statement.

(1) The facility must provide quarterly statements to the client or the client's representative.

(2) The quarterly statement must reflect any client funds held by the facility in an account or in a petty cash account. The quarterly statement must include at least the following:

(A) the statement coverage period;

(B) the balance at the beginning of the statement period;

(C) all deposits and withdrawals;

(D) the interest earned;

(E) the ending balance; and

(F) the identification number and location of any account in which the client's personal funds have been deposited.

(c) Access to trust fund records.

(1) The facility must make individual client's financial record and supporting documents available at any time during working hours to the client, the client's representative, and the Texas Department of Human Services.

(2) This review can be made without prior notification.

§46.69.Trust Fund Refunds.

(a) The facility must return the full balance of the client's personal funds held in the facility to the client or the client's representative immediately upon request if the request is made during normal business hours. For purposes of this subsection, normal business hours are 8:00 a.m. to 5:00 p.m. on working days, or at the beginning of the next normal business hours if the request is received during hours other than normal business hours.

(b) The facility must return the full balance of the client's personal funds that the facility has deposited in any bank account to the client or the client's representative within five working days of request. This refund must include any interest accrued.

§46.71.Trust Fund Procedures for Client Discharge.

(a) Client transfer.

(1) The facility must transfer the client's personal funds to the new facility either:

(A) in person; or

(B) by mail via certified return receipt.

(2) The facility must complete the transfer within five working days of the effective date of the transfer.

(3) The facility must not make any payments out of a client's trust fund after the effective date of transfer, except as described in this subsection.

(4) The new facility must provide a receipt to the old facility for the transferred funds, which must contain the following elements:

(A) the name of the client;

(B) the name of the new facility;

(C) the date of the transfer of funds. The date of the transfer of funds is either the:

(i) date the personal funds of the client are transferred to the new facility in person; or

(ii) date the certified return receipt shows the transfer of funds was mailed;

(D) the amount received by the new facility; and

(E) the check number for the transfer of funds.

(b) Client discharge.

(1) The facility must refund the discharged client's personal funds and provide a final accounting of those funds to the client or the client's representative either:

(A) in person; or

(B) by mail via certified return receipt.

(2) The facility must complete the refund and provide a final accounting within five working days of the date of discharge, or the date of the facility's awareness of the client's discharge, whichever is later.

(3) The facility must not make any payment out of a discharged client's trust fund, except as described in this subsection.

(4) The facility must maintain the following documentation in the client's trust fund record:

(A) a copy of the final accounting of the client's personal funds;

(B) the amount refunded to the discharged client or the client's representative;

(C) the date the refund was made. The date the refund was made is either:

(i) the date the funds were refunded in person; or

(ii) the date the certified return receipt shows the refund was mailed; and

(D) the method of refund. The facility must:

(i) obtain the signature of the client or the client's representative if the refund was in cash; or

(ii) document the check number if the refund was made by check.

(c) Client death.

(1) The facility must refund the deceased client's personal funds and provide a final accounting of those funds to the beneficiary, heir, or executor of the deceased client's estate either:

(A) in person; or

(B) by mail via certified return receipt.

(2) The facility must complete the refund and provide a final accounting within 30 days of awareness of the client's death.

(3) The facility must not make any payments out of a deceased client's trust fund, except as described in this subsection.

(4) The facility must maintain the following documentation in the client trust fund record:

(A) a copy of the final accounting of the client's personal funds;

(B) the amount refunded to the beneficiary, heir, or executor of the deceased client's estate;

(C) the date the refund was made. The date the refund was made is either:

(i) the date the funds were refunded in person; or

(ii) the date the certified return receipt shows the refund was mailed; and

(D) the method of refund. The facility must:

(i) obtain the signature of the client or the client's representative if the refund was in cash; or

(ii) document the check number if the refund was made by check.

(5) The facility must make a bona fide effort to locate the beneficiary, heir, or executor of a deceased client's estate.

(6) The facility must use the following procedures to clear the client's account if it is unable to locate or identify the beneficiary, heir, or executor of a deceased client's estate:

(A) The facility must send the personal funds of the deceased client to the Texas Department of Human Services (DHS), Fiscal Division, P.O. Box 149055, Austin, Texas 78714-9055 with the following information:

(i) the client's name;

(ii) the client's social security number; and

(iii) the amount of money being submitted to DHS for escheat.

(B) The facility must maintain the following in the client trust fund record:

(i) documentation of the facility's efforts to locate the beneficiary, heir, or executor of a deceased client's estate; and

(ii) proof of submission of the personal funds of a deceased client to DHS.

(d) Contract assignment.

(1) The assignor (the facility transferring the contract) must transfer the bank balances of the trust fund to the assignee (the facility to which the contract assignment is made) either:

(A) in person; or

(B) by mail via certified return receipt.

(2) The assignor must complete the transfer within five working days of the effective date of the contract assignment.

(3) The assignor must not make any payments out of a client's trust fund after the effective date of the contract assignment, except as described in this subsection.

(4) The assignor must provide the assignee with a list of the clients who are utilizing the trust fund and their balances.

(5) The assignee must provide the assignor with a receipt for the transfer of these funds. The receipt must contain the following elements:

(A) the date of the transfer of funds. The date the transfer was made is either the:

(i) date the funds were refunded in person; or

(ii) date the certified return receipt shows the refund was mailed;

(B) the name of the assignor;

(C) the amount received by the assignee; and

(D) the check number for the transfer of funds.

(6) The assignor must keep the receipt for audit purposes.

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

Filed with the Office of the Secretary of State on March 14, 2003.

TRD-200301764

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 27, 2003

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


Part 2. TEXAS REHABILITATION COMMISSION

Chapter 115. MEMORANDA OF UNDERSTANDING WITH OTHER STATE AGENCIES

The Texas Rehabilitation Commission (TRC) proposes a change to Title 40, Chapter 115, concerning memoranda of understanding with other state agencies. The proposal repeals and replaces §115.8 to update a memorandum of understanding dealing with the provision of services needed to prepare students enrolled in special education to transition from public school to adult life, which was first adopted in 1990.

Texas Education Code (TEC), §29.011, requires that the Texas Education Agency (TEA), the Texas Department of Mental Health and Mental Retardation (TDMHMR), and TRC, by a cooperative effort, develop and by rule adopt an MOU. TEC, §29.011, specifies that the TEA shall coordinate the development of the MOU and that the TEA, the TDMHMR, and the TRC may request other appropriate agencies to participate in the development of the MOU. Accordingly, the adopted MOU includes the participation of the following agencies: Texas Commission for the Blind, Texas Commission for the Deaf and Hard of Hearing, Texas Department of Health, Texas Department of Housing and Community Affairs, Texas Department of Human Services, Texas Department of Mental Health and Mental Retardation, Texas Department of Protective and Regulatory Services, Texas Education Agency, Texas Higher Education Coordinating Board, Texas Juvenile Probation Commission, Texas Rehabilitation Commission, Texas Workforce Commission, and Texas Youth Commission.

The adopted new MOU (codified as 19 TAC §89.1110) addresses respective roles and responsibilities of participating agencies in the sharing of information about, and coordination of services to, eligible students with disabilities receiving special education services. The new MOU clarifies and adds definitions and better addresses information sharing and agency participation, regional and local collaboration, cross-agency training, and dispute resolution. Other terms of the MOU provide for the MOU to be reviewed and considered for expansion, modification, or amendment at any time the executive officers of the parties agree or at least every four years.

Bill Wheeler, Deputy Commissioner for Financial Services, has determined that for the first five-year period the section is in effect, there will be no material fiscal implications for state or local government.

Mr. Wheeler also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be the agency's compliance with Chapter 111, Human Resources Code. There will be no material effect on small businesses. There is no material anticipated economic cost to persons who are required to comply with the section as proposed. In accordance with Government Code section 2001.022, TRC has determined that the proposed rule will not affect a local economy.

Comments on the proposal may be submitted to Roger Darley, Assistant General Counsel, Texas Rehabilitation Commission, 4900 North Lamar Boulevard, Suite 7300, Austin, Texas 78751.

40 TAC §115.8

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Rehabilitation Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeal is proposed under the Texas Human Resources Code, Title 7, Chapter 111, §111.018 and §111.023, which provides the Texas Rehabilitation Commission with the authority to promulgate rules consistent with Title 7, Texas Human Resources Code.

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

§115.8.To Define the Role of the Texas Rehabilitation Commission for the Provision of Services Needed To Prepare Students Enrolled in Special Education To Transition from Public School to Adult Life.

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

Filed with the Office of the Secretary of State on March 17, 2003.

TRD-200301775

Sylvia F. Hardman

Deputy Commissioner for Legal Services

Texas Rehabilitation Commission

Earliest possible date of adoption: April 27, 2003

For further information, please call: (512) 424-4050


40 TAC §115.8

The new rule is proposed under the Texas Human Resources Code, Title 7, Chapter 111, §111.018 and §111.023, which provides the Texas Rehabilitation Commission with the authority to promulgate rules consistent with Title 7, Texas Human Resources Code.

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

§115.8.Memorandum of Understanding on Individual Transition Planning for Students Receiving Special Education Services.

(a) Participating agencies. The memorandum of understanding (MOU) is established among the following state agencies referred to herein as "the parties":

(1) Texas Commission for the Blind (TCB);

(2) Texas Commission for the Deaf and Hard of Hearing (TCDHH);

(3) Texas Department of Health (TDH);

(4) Texas Department of Housing and Community Affairs (TDHCA);

(5) Texas Department of Human Services (DHS);

(6) Texas Department of Mental Health and Mental Retardation (TDMHMR);

(7) Texas Department of Protective and Regulatory Services (PRS);

(8) Texas Education Agency (TEA);

(9) Texas Higher Education Coordinating Board (THECB);

(10) Texas Juvenile Probation Commission (TJPC);

(11) Texas Rehabilitation Commission (TRC);

(12) Texas Workforce Commission (TWC); and

(13) Texas Youth Commission (TYC).

(b) Purpose.

(1) Under the authority of Texas Education Code (TEC), §29.011 (Transition Planning), the purpose of this MOU is to establish the respective responsibilities of each party for the provision of the services necessary to prepare students receiving special education services for a successful transition to life outside the public school system.

(2) This MOU documents the parties' commitment to collaborative efforts and sharing of resources in providing effective transition services to students receiving special education services.

(c) Philosophy. This MOU is intended to further the development of transition services in Texas that, through a comprehensive array of coordinated services, offers improved choices and opportunities to achieve maximum independence and integration in the community for students receiving special education services. This philosophy reflects the following beliefs:

(1) Transition is a student-centered, student-driven process. Successful transition planning should develop the self-determination skills of each student.

(2) Successful transition is facilitated when each student and his or her parent(s) have the knowledge and skills needed to empower them to plan for the student's future and to make effective use of personal and community resources in achieving independence.

(3) Each student should have opportunities to have a meaningful life and to make informed choices about where to live, work, and play. Each student should have opportunities to fully participate in and be a contributing and respected member of his or her community.

(4) Each student has unique values, preferences, abilities, and challenges. Valuing diversity will enhance the benefits of individual transition planning.

(5) Individual transition planning should be a thoughtful, collaborative process involving the student, the family, school personnel, agencies, community resources, and other stakeholders. Each student should actively participate in identifying his or her individual transition planning committee members.

(6) Individual transition planning should be an integral part of the educational process, not a single event.

(7) The success of individual transition planning is based on the development of ongoing productive working relationships and common goals among all of the parties involved in transition planning. The success of individual transition planning is not dependent upon attendance of all parties at all individual transition planning meetings, although such attendance is encouraged.

(d) Definitions. The following words and terms, when used in this MOU, shall have the following meaning, unless the context clearly indicates otherwise:

(1) "Agencies" means the parties, the local entities of the parties, or organizations that provide services and supports to the general public. Participation in this MOU by local workforce development boards may be separately arranged by local agreements. Information regarding specific agency responsibilities is delineated in subsection (e)(4)(C) of this section.

(2) "Admission, review, and dismissal (ARD) committee" means the committee convened for, among other things, the purpose of developing the individualized education program consistent with 34 Code of Federal Regulations (CFR) §300.344 and §89.1050 of this title (relating to The Admission, Review, and Dismissal (ARD) Committee).

(3) "Community experience" means activities that are conducted and provided in community settings, including community-based work experiences and/or exploration, job site training, banking, shopping, transportation, and recreation.

(4) "Employment (individualized competitive employment)" means full-time or part-time competitive employment, including supported employment for which an individual is compensated by the workplace employer at or above the minimum wage, but not less than the customary wage and level of benefits paid by the employer for the same or similar work performed by individuals without disabilities. This includes the individualized support services that are necessary to maintain the individual in competitive employment. This does not include enclaves, pods in industry, or groups of individuals with disabilities working in an integrated setting.

(5) "FERPA" means the Family Educational Rights and Privacy Act, 20 United States Code (USC) §1232(g), which is a federal law designed to protect the privacy of a student's education records. The law applies to educational institutions and agencies that receive funds under an applicable program of the U.S. Department of Education. FERPA gives parents certain rights with respect to their children's education records. These rights transfer to the student, or former student, who has reached the age of 18 or is attending any school beyond the high school level.

(6) "Functional vocational evaluation" means an assessment process that provides information about job or career interests, aptitudes, and skills. Information may be gathered through situational assessments, observation, or formal measures and should be practical in nature.

(7) "Higher education" means any postsecondary education provided by a public, private, or proprietary college, university, or technical school, including college-level courses, developmental education, and adult continuing education.

(8) "IDEA" means the Individuals with Disabilities Education Act, 20 USC §§1400 et seq., which is a federal law that ensures the provision of special education and related services to eligible students with disabilities.

(9) "Individualized education program (IEP)" means a written education program for a student receiving special education and related services that is developed in an ARD committee meeting and includes the elements described in relevant federal and state requirements consistent with 34 CFR §300.346 and §300.347 and §89.1050 of this title.

(10) "Individual transition plan (ITP)" means a written plan that is developed apart from the IEP that focuses on successful independence and integration in the community.

(11) "Local educational agency (LEA)" means consistent with 20 USC §1401(15), any public authority, institution, or agency having administrative control and direction of a public elementary or secondary school, including a public charter school that is established as an LEA under state law.

(12) "Parent" includes a biological or adoptive parent whose parental rights have not been terminated, surrogate parent, legal guardian, legal conservator, or person acting in the place of a parent.

(13) "Parties" means signatory agencies to this MOU. Any reference to participation by the "parties" as applied to the TWC is subject to the definition of "agencies" as defined in paragraph (1) of this subsection.

(14) "Related services" means transportation and such developmental, corrective, and other supportive services as are required to assist a child with a disability to benefit from special education and includes speech-language pathology and audiology services; psychological services; physical and occupational therapy; recreation, including therapeutic recreation; early identification and assessment of disabilities in children; counseling services, including rehabilitation counseling; orientation and mobility services; and medical services for diagnostic or evaluation purposes. The term also includes school health services, social work services in school, and parent counseling and training consistent with 34 CFR §300.24.

(15) "Self-determination" means the abilities and attitudes necessary to exercise primary control over one's life and to make choices regarding one's quality of life free from undue external influence or interference.

(16) "Special education" means specially designed instruction and related services, at no cost to the parent(s), to meet the unique needs of a child with a disability consistent with 34 CFR §300.26.

(17) "Student" means an individual with a disability receiving special education services.

(18) "Transition services" means a coordinated set of activities for a student with a disability that meets the criteria described in subparagraph (A) of this paragraph.

(A) Transition services means a coordinated set of activities that:

(i) is designed within an outcome-oriented process that promotes movement from school to post-school activities, including post-secondary education, vocational training, integrated employment (including supported employment), continuing and adult education, adult services, independent living, or community participation;

(ii) is based on the individual student's needs, taking into account the student's preferences and interests; and

(iii) includes:

(I) instruction;

(II) related services;

(III) community experiences;

(IV) development of employment and other post-school adult living objectives; and

(V) if appropriate, acquisition of daily living skills and functional vocational evaluation.

(B) Transition services for students with disabilities may be special education if provided as specially designed instruction, or related services, if required to assist the student with a disability to benefit from special education consistent with 34 CFR §300.29.

(e) Individual transition planning.

(1) ITP committee members.

(A) The student, the parent, and the LEA have the right to invite participants who have knowledge or special expertise about the student.

(B) Except as provided in subparagraph (C) of this paragraph, transition planning and annual reviews of the ITP shall include, but are not limited to, the following participants:

(i) the student (the student shall not be excluded based on age or severity of disability);

(ii) the student's parent(s);

(iii) the student's special education teacher or person(s) knowledgeable of special education processes and directly involved in the student's educational program; and

(iv) person(s) knowledgeable of the general education curriculum and the minimum academic requirements for graduation and the relationship of those requirements to the Academic Achievement Record.

(C) If the student is, or is likely to be, participating in career and technology education as part of his or her IEP, the ITP committee should include a representative from career and technology, preferably the student's teacher.

(D) An LEA may designate one individual to fulfill one or both of the roles described in subparagraph (B)(iii) and (iv) of this paragraph provided such individual meets the requirements specified in that subparagraph.

(E) Based on procedures developed in subsection (f)(1)(D)(i) of this section dealing with participation, the LEA shall invite, subject to paragraph (2) of this subsection, a representative of any agency that is currently providing services to the student to the extent that the LEA has knowledge that the agency is providing services.

(F) The LEA shall invite, subject to paragraph (2) of this subsection, a representative of any other agency that is likely to be responsible or capable of identifying, planning, providing, or paying for transition services.

(G) Other participants may include, subject to paragraph (2) of this subsection, representatives from the community, organizations, or other entities that can assist the student to achieve identified goals.

(H) Participants, in addition to required members, shall be determined based on the individual student's transition needs and plans for the future, and not solely on disability.

(I) The LEA shall take reasonable steps to ensure that all invited participants are afforded the opportunity to attend a student's ITP meeting. If an invited participant cannot attend the meeting, the LEA and the regional and local entities of the parties shall take reasonable steps to ensure participation, including, but not limited to, individual or conference telephone calls, written, or electronic communication.

(J) A meeting may be conducted without a parent and/or student in attendance if the parent or student is unable to attend or chooses not to participate. In this case, the LEA must have a record of its attempts to arrange the meeting at a mutually agreed upon time and place.

(2) Consent for release of confidential information. In order to release student confidential information or to include a student's name on a notice sent to another agency, an LEA must first obtain consent to release confidential educational records and information from each student's parent or the student, if the right to consent has transferred to the student. Each LEA shall seek to obtain such consent with respect to any agency that is or may be responsible for providing or paying for transition services. To the extent that consent is given for the disclosure of information to other agencies, the LEA will ensure that those agencies receive notice of the ITP meeting. Agencies receiving confidential records and information shall protect and maintain the confidentiality of the information received consistent with 34 CFR §§300.560-300.577, Part 99, and the agencies' respective confidentiality requirements.

(3) Notice. LEAs must provide written notice of an ITP meeting as follows.

(A) When the student, parent, and school personnel are the only invited participants, notice must be provided at least five school days prior to the meeting. The student, parent, and school personnel may mutually agree to waive this five-school-day timeline. The LEA must maintain written documentation of the waiver in the eligibility folder.

(B) When inviting other participants, in addition to the student, parent, and school personnel, notice must be provided to all participants at least 30 calendar days prior to the meeting. This 30-calendar-day provision may be waived if all invited participants mutually agree. The LEA must maintain written documentation of the waiver in the eligibility folder.

(C) The notice of the ITP meeting must be written in language understandable to the general public and must include:

(i) the student's name;

(ii) the purpose, date, time, and location of the meeting;

(iii) a list of invited participants;

(iv) a statement that the student and parent have the right to bring relevant information, resources, and invite other participants who have knowledge or special expertise about the student;

(v) the name and telephone number of an LEA contact person; and

(vi) a copy of the notice in the native language of the parent or other mode of communication used by the parent, unless it is clearly not feasible to do so.

(D) When rights transfer to a student, procedures must take place in accordance with the following.

(i) In accordance with 34 CFR §300.517(a)(1) and TEC, §29.017(a), the parental rights set forth in TEC, §29.011(e), and this MOU relating to the ITP process, other than the right to notice, transfer to a student when the student reaches 18 years of age, unless the student's parent or other individual has been granted guardianship of the student under the Probate Code, Chapter XIII, Guardianship. After the student reaches the age of 18, the LEA shall provide any notice required under this paragraph to both the adult student and the parent.

(ii) In accordance with 34 CFR §300.517(a)(2) and TEC, §29.017(b), the parental rights set forth in TEC, §29.011(e), and this MOU relating to the ITP process, including the right to receive any notice, transfer to an 18-year-old student who is incarcerated in an adult or juvenile, state or local correctional institution, unless the student's parent or other individual has been granted guardianship of the student under the Probate Code, Chapter XIII, Guardianship.

(iii) The notice of an ITP meeting that is required to be given to an adult student and parent does not create a right for the parent to attend or participate in the meeting, or create a right for the parent to consent to the release of confidential information about the student. However, in accordance with paragraph (1)(A) of this subsection, the adult student or the LEA may invite to an ITP meeting individuals who have knowledge or special expertise about the student, including the parent.

(4) Process.

(A) Transition planning process. Before age 13 (or upon initial placement in special education, if a student is initially identified at age 13 or older), or when requested by the student or parent, the LEA must provide each student and the student's parent(s) with information about transition planning. This information shall include:

(i) the philosophy and purpose of the individual transition planning process;

(ii) the role of the student and parent in the student-driven transition planning process;

(iii) the areas of consideration for the individual transition planning process to include the following:

(I) employment;

(II) housing;

(III) recreation and leisure;

(IV) post-secondary education and other options;

(V) transportation;

(VI) reaching age of majority (e.g., PRS conservatorship, guardianship, health benefits); and

(VII) physical and mental health needs.

(iv) age requirements related to individual transition planning;

(v) ITP committee membership;

(vi) the relationship between the ITP and the IEP and the processes for their development;

(vii) interagency responsibilities and linkages when appropriate;

(viii) comprehensive information, as individually appropriate, made available at the annual regional planning meeting; and

(ix) the list of opportunities to learn about transition planning developed as a result of the annual regional planning meeting as referenced in subsection (f)(1)(D)(i)(V) of this section.

(B) Individual transition plan development process.

(i) The ITP meeting shall be initiated and facilitated by the LEA in collaboration with the student and parent.

(ii) The ITP committee shall develop and annually review an ITP for each student enrolled in a special education program who is at least 16 years of age. At each annual review, the ITP committee shall review the student's progress on the ITP and revise the ITP, as appropriate. A student, parent, or party may request the development of an initial ITP for a student younger than age 16. The ARD committee shall determine the need to develop an initial ITP for a student younger than age 16.

(iii) The ITP shall be developed as a separate document from the IEP.

(iv) A copy of the ITP shall be given to the student and his or her parent(s). One copy per household may be provided if the student and his or her parent(s) reside at the same address. To the extent that consent is granted, a copy of the ITP shall be provided to agencies and others that will assist in the implementation of the ITP.

(v) The ITP development process shall begin with a committee discussion of the student's and parents' role in guiding the transition planning process and the student's vision for independence, self-determination, and inclusion in the community. If the student is unable to attend, the LEA will obtain the student's preferences and interests and bring them in writing to the ITP meeting. Any committee member may provide information relevant to the student's ITP.

(vi) The ITP committee shall discuss and determine the student's long-range goals in the following areas:

(I) employment;

(II) housing;

(III) recreation and leisure; and

(IV) post-secondary education and other options.

(vii) The ITP committee shall discuss and determine the student's long-range goals in the following areas, as individually appropriate:

(I) transportation;

(II) issues relating to reaching age of majority (e.g., PRS conservatorship, guardianship, health benefits);

(III) physical and mental health needs; and

(IV) other issues impacting transition to life outside the public school system.

(viii) The ITP committee shall discuss and identify:

(I) strategies and activities for achieving each of the identified goals;

(II) how progress toward the goals will be evaluated;

(III) a network of support, including, but not limited to, family, friends, coworkers, agencies, and community resources available to the public, that is needed to achieve the student's desired goals;

(IV) when, where, and how support services shall be provided by the network of support. It shall also include a description of specific support services; and

(V) the responsible parties and/or network of support and projected timelines for each of the goals.

(ix) Elements of the ITP that are the responsibility of the student and parent(s) shall be discussed at the meeting and included in the ITP.

(x) The ITP may include identification of and referral for potential services, but may not include commitment of services for agencies not attending the meeting. Receipt of agency services by a student is contingent upon determination of eligibility for and the availability of that agency's services.

(xi) For students who are incarcerated, the ITP shall identify the needed transition services to facilitate the reintegration of the student to the home community and to the receiving LEA.

(C) Agency responsibility.

(i) Regional or local representatives of a party shall attend initial ITP and subsequent ITP review meetings for the students who are currently receiving services from that party.

(ii) Agencies are encouraged, based on agreements reached at the annual regional planning meeting and availability of personnel, to attend initial ITP and subsequent ITP review meetings for any student who is not currently receiving, but may be in need of, services.

(iii) Regional or local representatives of a party that are unable to attend an initial ITP or subsequent ITP review meeting shall, prior to the meeting, send information or communicate with school personnel through options identified in the annual regional planning meeting.

(iv) The elements of the student's ITP to be accomplished by a responsible party shall be included in that party's individualized plan of service for the student.

(v) The following services and activities supporting transition shall be initiated and provided on an individual student basis by the LEA:

(I) educational programming, including instruction, related services, community experiences, development of employment, other post-school adult living objectives, and, if appropriate, acquisition of daily living skills and functional vocational evaluation;

(II) community-based instructional alternatives focusing on independent living and employment;

(III) appropriate instructional environments within adult settings for students ages 18-21; and

(IV) referral of students and parents to other agencies for service consideration.

(vi) The following services and activities supporting transition shall be initiated and provided by the TRC:

(I) the planning, administrative, and staff training costs of providing assistance to LEAs and education service center personnel to plan effectively with students who have disabilities who would benefit from referral to the TRC programs; and

(II) the cost of services provided to eligible individuals with disabilities once they have made the transition from the receipt of educational services in school to the receipt of vocational rehabilitation services or other program services provided by the TRC.

(vii) The following services and activities supporting transition shall be initiated and provided on an individual student basis by TYC:

(I) educational programming, including instruction, related services, and when appropriate, community experiences, development of employment skills, other post-school adult living objectives, and acquisition of daily living skills and functional vocational evaluations;

(II) appropriate instructional environments within adult settings for students ages 18-21;

(III) referral of students and parents to other agencies for services consideration; and

(IV) technical assistance and support to LEAs and ESCs to facilitate uninterrupted successful transition planning and reintegration of youth continuing in the public school system, including, but not limited to, records retrieval, identification of community resources, and follow-up services.

(viii) Each party shall ensure compliance with this MOU.

(5) Procedural relationship between the development of the ITP and the development of the IEP.

(A) Federal law requires that the IEP for each student, beginning at age 14 (or younger, if determined appropriate by the ARD committee) and updated annually, must include a statement of the transition service needs of the student under the applicable components of the student's IEP that focuses on the student's courses of study (such as participation in advanced placement courses or a vocational education program).

(B) Federal law requires that the IEP for each student, beginning at age 16 (or younger, if determined appropriate by the ARD committee), must include a statement of needed transition services for the student, including, if appropriate, a statement of the interagency responsibilities or any needed linkages.

(C) The ITP shall be developed or reviewed apart from the development of the IEP. To minimize scheduling conflicts, the LEA may schedule the development and annual review of the ITP immediately before the ARD committee's development and review of the IEP.

(D) Only those components of the ITP that are the responsibility of the LEA may be incorporated into the student's IEP. Only the failure to implement those components of a student's ITP that are included in the IEP are subject to the due process procedures of IDEA or to TEA complaint procedures.

(E) The time between the ITP meeting and the subsequent ARD committee meeting to incorporate into the IEP those components of the ITP that are the responsibility of the LEA shall be no more than 30 school days.

(F) In the following circumstances, the ARD committee shall establish a timeline for development of an ITP.

(i) Once eligibility for special education services is determined for a student who is at least 16 years old, the ITP must be developed within 30 school days of the initial IEP development.

(ii) For a transfer student who is at least 16 years old and without a current ITP, an ITP must be developed 30 school days from the final transfer ARD committee meeting.

(G) For a transfer student with an ITP, the ARD committee shall review the ITP and determine the need for revision within 30 school days from the final transfer ARD committee meeting.

(f) Participation.

(1) Annual regional planning meeting (ARPM).

(A) The ARPM shall be held in each of the 20 education service center (ESC) regions in the state in accordance with the terms of this section.

(B) The purpose of the ARPM is to develop common goals, cooperative working relationships, and a written process for implementing and maintaining effective transition planning.

(C) The parties, with the exception of TJPC, shall send regional or local representatives to ARPMs. TYC shall send state, regional, or local representatives to ARPMs in ESC regions in which TYC operated schools are located. Additional participants at the ARPM should include persons with disabilities, their parents or other family members, educators, agencies, representatives from consumer and advocacy organizations, and business and community leaders.

(D) The timeline and procedures for the initial ARPM include the following.

(i) By March 1, 2004, and at least annually thereafter, each ESC shall ensure that an ARPM involving the representatives and participants identified in subparagraph (C) of this paragraph is convened to address:

(I) the level of regional and local agency participation in transition planning, including, but not limited to, procedures to ensure compliance with subsection (e)(4)(C)(iv) of this section;

(II) how notice to agency personnel regarding the ITP meetings shall be provided;

(III) consideration of less than 30 calendar days notice for ITP meetings for transfer students due to the importance of the ITP in providing direction for the IEP;

(IV) options available if an agency representative is unable to attend an ITP meeting;

(V) the development of a list of opportunities for students and parents to learn about transition planning with emphasis on self-determination and making informed choices;

(VI) how and by whom future regional planning meetings shall be planned and facilitated;

(VII) the process for resolving disputes at the local level;

(VIII) the confidentiality of certain information and processes for obtaining consent to release such information; and

(IX) how to avoid duplication of efforts by utilizing established groups addressing interagency issues.

(ii) By October 1, 2004, the written process for implementing and maintaining effective transition planning as required by subparagraph (B) of this paragraph developed at the ARPM shall be shared with all the participants of the ARPM, as identified in accordance with subparagraph (C) of this paragraph.

(E) During the ARPM, the following comprehensive information regarding regional and local agency services shall be provided to the ESC:

(i) a description of services, local availability, and cost (not applicable for TJPC and TYC);

(ii) eligibility criteria for services (not applicable for TJPC and TYC);

(iii) how to access services, including, but not limited to, regional and/or local contact information (not applicable for TJPC and TYC); and

(iv) complaint procedures (not applicable for TJPC and THECB).

(2) Exceptions for the use of school records as assessment data by the parties. The parties agree to accept current relevant school records to use as assessment data, when appropriate, except as indicated below:

(A) TCB: no more than one year old and meets TCB guidelines;

(B) DHS: no more than one year old and meets DHS guidelines;

(C) TDMHMR:

(i) Mental Retardation (MR): the person who conducts the determination of mental retardation for eligibility for MR services considers the previous assessment, social history, or relevant record from another entity, including an LEA if it is a valid reflection of the individual's current level of functioning;

(ii) MR: the determination of mental retardation includes the establishment of the diagnosis of MR during the developmental periods, (i.e., before age 18). Access to school records up to seven years after graduation is available through the Public Education Information Management System at the LEA or through TEA for up to ten years following graduation; and

(iii) Mental Health (MH): determination of eligibility for special education services as a student with emotional disturbance is not the same for eligibility for the priority populations served by mental health services. TDMHMR requires a diagnosis by a licensed practitioner of the Healing Arts to determine if the individual is in the priority population;

(D) TJPC: does not provide direct services, however, the local juvenile probation departments may accept such records;

(E) TWC: does not provide direct services, however, the local workforce development boards may accept such records; and

(F) TRC: no more than three years old and meets TRC guidelines.

(3) Transfer of information.

(A) With the exception of TJPC, parties shall share current service plan information with another part of their agency in a different service area when a student moves. TDMHMR shall share information upon receipt of a written consent by the adult student or the parent/guardian.

(B) With the exception of TJPC, parties shall share current service plan information with the receiving LEA when a student moves upon receipt of a written consent by the adult student or the parent.

(C) All parties shall agree to support or participate in training for the successful implementation of the MOU.

(g) Information sharing.

(1) State. Annually, the TEA will share with the parties an aggregate of relevant information for the purpose of budget development, strategic planning, and service coordination for students with disabilities. The information shall include age, gender, ethnicity, disabilities, and instructional arrangement.

(2) Training. Coordinated training shall be conducted at the state, regional, and local levels. Elements of this training shall include but not be limited to implementation of the MOU, interagency collaboration, community outreach, and best practices. Training shall be organized as follows.

(A) A lead ESC will facilitate the development, with input from the parties, of a training model to be used at the state, regional, and local levels.

(B) Each party shall designate staff to conduct joint interagency training for appropriate state and regional level personnel of the parties and state and regional representatives from agencies.

(C) The regional representatives of the parties shall designate staff to conduct joint interagency training for the local representatives of the parties, participants in the annual regional planning meeting, and students, families, local agencies, and interested members of the community.

(h) Dispute resolution.

(1) Local disputes.

(A) If a local dispute (between or among LEAs and/or local entities of the parties) concerning the implementation of this MOU arises prior to the initial annual regional planning meeting in a particular region, the dispute shall be addressed according to the following procedure.

(i) Resolution of the dispute shall first be attempted at the local level. The specific issues involved in the dispute and possible solutions shall be identified and referred to local personnel authorized to make decisions necessary to resolve the dispute.

(ii) If resolution is not reached after a reasonable period of time (not to exceed 45 days unless the disputing entities agree otherwise), the disputing entities shall refer the dispute to the TEA for further negotiations toward a mutually agreeable resolution. The TEA will contact the disputing entities and set up a meeting for this purpose.

(iii) Disputing entities referring disputes to the TEA shall identify:

(I) the nature of the dispute;

(II) any resolutions agreed upon;

(III) the issues that remain unresolved; and

(IV) the contact persons representing the disputing entities.

(B) In accordance with subsection (f)(1)(D)(i)(VII) of this section, each region's initial annual regional planning meeting must address the process for resolving local disputes. Local disputes that arise after these local dispute resolution processes are in place shall be addressed according to the applicable local process.

(2) State agency disputes.

(A) Resolution of disputes concerning implementation of this MOU between two or more parties must first be attempted at the staff level. If resolution is not reached after a reasonable period of time (not to exceed 45 days unless the disputing parties agree otherwise), the disputing parties will refer the dispute to their respective executive officers, or their designees, for further negotiation. The appropriate state officials shall meet to seek resolution of the dispute.

(B) If the chief executive officers of the disputing parties determine that the dispute cannot be resolved at their level, the disputing parties may pursue resolution through the use of mediation pursuant to the Governmental Dispute Resolution Act, Texas Government Code, Chapter 2009.

(i) MOU review. This MOU may be reviewed and considered for expansion, modification, or amendment at any time the executive officers of the parties agree or at least every four years.

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

Filed with the Office of the Secretary of State on March 17, 2003.

TRD-200301776

Sylvia F. Hardman

Deputy Commissioner for Legal Services

Texas Rehabilitation Commission

Earliest possible date of adoption: April 27, 2003

For further information, please call: (512) 424-4050