TITLE 40.SOCIAL SERVICES AND ASSISTANCE

Part 1. TEXAS DEPARTMENT OF HUMAN SERVICES

Chapter 12. SPECIAL NUTRITION PROGRAMS

Subchapter A. CHILD AND ADULT CARE FOOD PROGRAM (CACFP)

2. ELIGIBILITY OF CONTRACTORS AND FACILITIES

40 TAC §12.21

The Texas Department of Human Services (DHS) adopts an amendment to §12.21 without changes to the proposed text published in the December 5, 2003, issue of the Texas Register (28 TexReg 10900).

Justification for the amendment is to remove the specific dollar amount of the threshold for the single audit requirements and to provide the reference for compliance to 7 Code of Federal Regulations (CFR) Part 3052. This amendment makes the rule consistent with corresponding audit rules in Chapter 12.

DHS received no comments regarding adoption of the amendment.

The amendment is adopted under the Human Resources Code, Chapters 22 and 33, which authorizes DHS to administer public and nutritional assistance programs.

The amendment implements the Human Resources Code, §§22.0001-22.040 and §§33.001-33.027.

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

Filed with the Office of the Secretary of State on January 8, 2004.

TRD-200400121

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: January 28, 2004

Proposal publication date: December 5, 2003

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


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

Chapter 183. BOARD FOR EVALUATION OF INTERPRETERS AND INTERPRETER CERTIFICATION

Subchapter A. DEFINITIONS AND BOARD OPERATIONS

40 TAC §183.9

The Texas Commission for the Deaf and Hard of Hearing adopts an amendment to §183.9, without changes to the text as published in the November 7, 2003, Texas Register (28 TexReg 9789).

This amendment will add language regarding the definition of a court interpreter.

No comments were received.

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

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

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

Filed with the Office of the Secretary of State on January 8, 2004.

TRD-200400137

David Myers

Executive Director

Texas Commission for the Deaf and Hard of Hearing

Effective date: January 28, 2004

Proposal publication date: November 7, 2003

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


Subchapter G. CERTIFIED COURT INTERPRETERS

40 TAC §183.701

The Texas Commission for the Deaf and Hard of Hearing adopts new §183.701, without changes to the text as published in the November 7, 2003, Texas Register (28 TexReg 9790).

This new rule will add language defining the scope of the court interpreter program.

No comments were received.

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

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

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

Filed with the Office of the Secretary of State on January 8, 2004.

TRD-200400125

David Myers

Executive Director

Texas Commission for the Deaf and Hard of Hearing

Effective date: January 28, 2004

Proposal publication date: November 7, 2003

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


40 TAC §183.706

The Texas Commission for the Deaf and Hard of Hearing adopts new §183.706, without changes to the text as published in the November 7, 2003, Texas Register (28 TexReg 9791).

This new rule will add language defining the examination requirements to become certified as a court interpreter.

No comments were received.

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

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

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

Filed with the Office of the Secretary of State on January 8, 2004.

TRD-200400126

David Myers

Executive Director

Texas Commission for the Deaf and Hard of Hearing

Effective date: January 28, 2004

Proposal publication date: November 7, 2003

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


40 TAC §183.707

The Texas Commission for the Deaf and Hard of Hearing adopts new §183.707, without changes to the text as published in the November 7, 2003, Texas Register (28 TexReg 9791).

This new rule will add language defining the training and requirements necessary to enable a person to take the court interpreter examination.

No comments were received.

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

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

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

Filed with the Office of the Secretary of State on January 8, 2004.

TRD-200400127

David Myers

Executive Director

Texas Commission for the Deaf and Hard of Hearing

Effective date: January 28, 2004

Proposal publication date: November 7, 2003

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


40 TAC §183.708

The Texas Commission for the Deaf and Hard of Hearing adopts new §183.708, without changes to the text as published in the November 7, 2003, Texas Register (28 TexReg 9792).

This new rule will add language defining the training and mentor requirements necessary to be approved by the Commission prior to the court interpreter examination.

No comments were received.

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

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

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

Filed with the Office of the Secretary of State on January 8, 2004.

TRD-200400128

David Myers

Executive Director

Texas Commission for the Deaf and Hard of Hearing

Effective date: January 28, 2004

Proposal publication date: November 7, 2003

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


40 TAC §183.709

The Texas Commission for the Deaf and Hard of Hearing adopts new §183.709, without changes to the text as published in the November 7, 2003, Texas Register (28 TexReg 9792).

This new rule will add language defining the requirements necessary to be approved by the Commission to renew a person’s court interpreter certification.

No comments were received.

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

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

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

Filed with the Office of the Secretary of State on January 8, 2004.

TRD-200400129

David Myers

Executive Director

Texas Commission for the Deaf and Hard of Hearing

Effective date: January 28, 2004

Proposal publication date: November 7, 2003

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


40 TAC §183.710

The Texas Commission for the Deaf and Hard of Hearing adopts new §183.710 with changes to clarify section (d). The rule was originally issued and posted in the November 7, 2003, issue of the Texas Register (28 TexReg 9793).

This new rule will add language defining the responsibilities of a certified court interpreter.

No comments were received.

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

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

§183.710.Responsibilities of certified court interpreter--General.

(a) A certified court interpreter must provide the following written notification to the court: "Certified by the Texas Commission for the Deaf and Hard of Hearing. Complaints about the services provided by this person may be presented to the Commission at P.O. Box 12904, Austin, Texas 78711." The notification shall also be included on all contracts and invoices for court interpreter services.

(b) A certified court interpreter shall present their court interpreter certification card upon the request of a court or an officer of the court.

(c) A certified court interpreter shall notify the Commission, in writing, within thirty (30) days of any change in the certified court interpreter's name, address, or telephone number.

(d) A Level III, IV or V certified interpreter, or RID certified CSC, IC/IT, RSC. MCSC interpreter who is not a certified court reporter who interprets in court shall inform the court.

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

Filed with the Office of the Secretary of State on January 8, 2004.

TRD-200400130

David Myers

Executive Director

Texas Commission for the Deaf and Hard of Hearing

Effective date: January 28, 2004

Proposal publication date: November 7, 2003

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


40 TAC §183.711

The Texas Commission for the Deaf and Hard of Hearing adopts new §183.711, without changes to the text as published in the November 7, 2003, Texas Register (28 TexReg 9793).

This new rule will add language defining the fees required to apply to become a certified court interpreter.

No comments were received.

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

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

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

Filed with the Office of the Secretary of State on January 8, 2004.

TRD-200400131

David Myers

Executive Director

Texas Commission for the Deaf and Hard of Hearing

Effective date: January 28, 2004

Proposal publication date: November 7, 2003

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


40 TAC §183.712

The Texas Commission for the Deaf and Hard of Hearing adopts new §183.712, without changes to the text as published in the November 7, 2003, Texas Register (28 TexReg 9794).

This new rule will add language outlining authority of the agency to impose administrative sanctions on a person who interprets in a court and is not qualified to function as a court interpreter.

No comments were received.

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

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

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

Filed with the Office of the Secretary of State on January 8, 2004.

TRD-200400132

David Myers

Executive Director

Texas Commission for the Deaf and Hard of Hearing

Effective date: January 28, 2004

Proposal publication date: November 7, 2003

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


40 TAC §183.713

The Texas Commission for the Deaf and Hard of Hearing adopts new §183.713, without changes to the text as published in the November 7, 2003, issue of the Texas Register (28 TexReg 9794).

The new rule will add language outlining process and actions that the agency may impose upon a person who interprets in a court and is not qualified to function as a court interpreter.

No comments were received regarding the new section.

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

No other statute, code or article is affected by the adopted new section.

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

Filed with the Office of the Secretary of State on January 8, 2004.

TRD-200400133

David Myers

Executive Director

Texas Commission for the Deaf and Hard of Hearing

Effective date: January 28, 2004

Proposal publication date: November 7, 2003

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


40 TAC §183.714

The Texas Commission for the Deaf and Hard of Hearing adopts new §183.714, without changes to the text as published in the November 7, 2003, issue of the Texas Register (28 TexReg 9795).

The new rule will add language outlining disciplinary actions that the agency may enact upon a person who interprets in a court and is not qualified to function as a court interpreter.

No comments were received regarding the new section.

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

No other statute, code or article is affected by the adopted new section.

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

Filed with the Office of the Secretary of State on January 8, 2004.

TRD-200400134

David Myers

Executive Director

Texas Commission for the Deaf and Hard of Hearing

Effective date: January 28, 2004

Proposal publication date: November 7, 2003

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


40 TAC §183.715

The Texas Commission for the Deaf and Hard of Hearing adopts new §183.715, without changes to the text as published in the November 7, 2003, Texas Register (28 TexReg 9796).

This rule will add language outlining disciplinary actions guidelines that the agency will utilize when a person interprets in a court and is not qualified to function as a court interpreter.

No comments were received.

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

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

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

Filed with the Office of the Secretary of State on January 8, 2004.

TRD-200400135

David Myers

Executive Director

Texas Commission for the Deaf and Hard of Hearing

Effective date: January 28, 2004

Proposal publication date: November 7, 2003

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


40 TAC §183.716

The Texas Commission for the Deaf and Hard of Hearing adopts new §183.716, without changes to the text as published in the November 7, 2003, Texas Register (28 TexReg 9797).

This new rule will add language clarifying the continuing education requirements of a certified court interpreter.

No comments were received.

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

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

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

Filed with the Office of the Secretary of State on January 8, 2004.

TRD-200400136

David Myers

Executive Director

Texas Commission for the Deaf and Hard of Hearing

Effective date: January 28, 2004

Proposal publication date: November 7, 2003

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


Part 20. TEXAS WORKFORCE COMMISSION

Chapter 809. CHILD CARE AND DEVELOPMENT

The Texas Workforce Commission (Commission) adopts the repeal of the following sections of Chapter 809, relating to Child Care and Development without changes to the proposal as published in the October 31, 2003, issue of the Texas Register (28 TexReg 9496):

Subchapter A, General Provisions, §809.1;

Subchapter B, General Management Requirements, §809.20;

Subchapter C, Requirements to Provide Child Care, §809.44 and §809.46;

Subchapter D, Self-Arranged Care; §809.61 and §809.62;

Subchapter E, Parent Rights and Responsibilities, §§809.72, 809.78 and 809.79;

Subchapter F, General Eligibility for Child Care, §809.92 and §809.93;

Subchapter G, Child Care for People Transitioning Off Public Assistance, §809.101;

Subchapter H, Children of Parents at Risk of Becoming Dependent on Public Assistance, §§809.121 - 809.123;

Subchapter K, Funds Management, §§809.225, 809.226 and 809.231;

Subchapter M, Appeal Procedure, §809.271;

Subchapter N, Corrective and Adverse Action, §809.283; and

Subchapter O, Child Care Train Our Teachers (TOT) Award, §§809.301 - 809.304, 809.311 - 811.314, 809.331, and 809.332.

The Commission adopts new rules for the following sections of Chapter 809 without changes to the proposed text as published in the October 31, 2003, issue of the Texas Register (28 TexReg 9496):

Subchapter A, General Provisions, §809.1;

Subchapter D, Self-Arranged Care, §809.63;

Subchapter E, Parent Rights and Responsibilities, §809.78 and §809.79;

Subchapter F, General Eligibility for Child Care, §809.92 and §809.93;

Subchapter H, Children of Parents at Risk of Becoming Dependent on Public Assistance, §809.123;

Subchapter K, Funds Management, §809.226 and §809.231; and

Subchapter M, Appeal Procedure, §809.271.

The Commission adopts new rules for the following sections of Chapter 809 with changes to the proposed text as published in the October 31, 2003, issue of the Texas Register (28 TexReg 9496):

Subchapter B, General Management, §809.20;

Subchapter C, Requirements to Provide Child Care, §809.44 and §809.46;

Subchapter D, Self-Arranged Care, §809.61 and §809.62;

Subchapter E, Parent Rights and Responsibilities, §809.72;

Subchapter G, Child Care for People Transitioning Off Public Assistance, §809.101;

Subchapter H, Children of Parents at Risk of Becoming Dependent on Public Assistance, §809.121 and §809.122;

Subchapter K, Funds Management, §809.225; and

Subchapter N, Corrective and Adverse Action, §809.283.

PART I. PURPOSE AND BACKGROUND

A. Purpose

B. Background

PART II. EXPLANATION OF INDIVIDUAL PROVISIONS

PART III. COORDINATION OF ACTIVITIES

PART IV. PUBLIC COMMENTS AND RESPONSES

PART I. PURPOSE AND BACKGROUND

A. Purpose

The purpose of the rule changes is, in part, to comply with federal and state statutory requirements. The rule changes also promote the efficient use of available funds providing affordable, safe and nurturing child care services to the maximum number of eligible families in order to enable them to achieve or maintain self-sufficiency. The Commission also removes certain obsolete rule provisions.

B. Background

The Commission adopts rule changes in order to comply with federal laws regarding the exclusion of certain federal educational loans and monetary allowances paid to certain children of Vietnam veterans from the income eligibility calculation. The Commission also adopts the rule changes in response to Senate Bill 280 (SB 280) enacted by the 78th Legislature, Regular Session, which requires modifications in the parent notification period for terminating child care services. SB 280 also allows the Commission the option of discontinuing the Train Our Teacher (TOT) scholarship program. The Commission also makes technical amendments to reflect the name change from the Texas Department of Protective and Regulatory Services (TDPRS) to the Texas Department of Family and Protective Services (TDFPS) as required by House Bill 2292, enacted by the 78th Legislature, Regular Session.

The proposed rule changes also provide clarification and establish new statewide parameters for local policies involving minimum work-activity hours, reimbursements to providers, and the parent responsibility agreement.

PART II. EXPLANATION OF INDIVIDUAL RULE AMENDMENTS

§809.1. Short Title and Purpose.

The Commission repeals §809.1(c) relating to the effective date for the implementation of the child care rules adopted in February 1999. It includes the provision that "...until September 1, 1999, the Boards shall continue to comply with the rules in effect on January 1, 1999." It also provides that Boards have until December 1, 1999 to implement direct payments to providers for self-arranged child care. The purposes for which these specific rules were adopted have been served, and they are no longer relevant.

The Commission also adds a new §809.1(c) that provides clarification related to the repeal of Subchapter O, Child Care Train Our Teachers (TOT) Award. SB 280 amends §302.066(a) of the Labor Code, making it optional rather than mandatory for the Commission to continue awarding TOT scholarships. Both the 76th and 77th Legislatures appropriated funds specifically to support the TOT scholarship awards. The 78th Legislature, however, appropriated no funds specifically to support the continuation of the TOT scholarships in the 2004 - 2005 biennium. Furthermore, an evaluation of the first two years of the TOT program indicates that the scholarships are not achieving the results intended.

Section 809.1(c) stipulates that the Texas Workforce Commission will continue to administer and honor TOT scholarships awarded prior to July 1, 2003, under the rules in effect when the scholarship was awarded. The new rule also stipulates that repeal of the TOT award will not prohibit the Commission from enforcing the employment and reporting obligations required of TOT awardees.

§809.20. Leveraging Local Resources.

The Commission changes §802.20(a)(1) by adding subparagraph (B) in order to allow Boards to include certifications of eligible expenditures by private entities in their local match requirements. With the increase in the amount of local match required in the state's General Appropriations Act for the 2004 - 2005 biennium, the ability to certify eligible expenditures by private entities would assist the Boards in securing additional local matching funds.

The federal regulations at 45 CFR, Part 98 §98.53 provide for the use of certified or transferred public funds and for the use of private funds, within certain limitations, to meet the state's matching funds requirements. This rule change allows Boards to certify child care expenditures by private entities provided that the expenditures do not expressly or effectively benefit a specific individual, organization, facility or institution.

§809.44. Provider General Liability Insurance Requirements.

The Commission adopts a new §809.44 in order to set limits on Board policies regarding liability insurance for child care providers. Prior to this change the Boards had flexibility in determining if general liability insurance would be required and the amount of the liability insurance required for child care providers with signed agreements to serve Commission subsidized children. The rule changes in §809.44 will align the liability insurance requirements for child care with the state requirements stipulated in Chapter 42 of the Human Resources Code.

State law (§42.049 of the Human Resource Code) requires only licensed child care centers to carry $300,000 per occurrence in general liability insurance. If a center is unable to secure liability insurance or has exhausted the liability limits stipulated in its policy, state law permits the Texas Department of Family and Protective Services (TDFPS) to exempt the center from this requirement, and the center must notify parents that they do not carry liability insurance. Furthermore, state law does not require child care homes to carry liability insurance to be licensed or registered by TDFPS.

Many Boards, however, in their agreements with child care providers require liability insurance in excess of the $300,000, require providers to list the contractor as the "additional insured" in the provider's policy, and do not allow an exemption from the liability insurance requirement as stipulated in the state standards. Most Boards also require liability insurance in their agreements with licensed and registered child care homes, even though these providers are not required by state law have general liability insurance.

It is the intent of the Commission that Boards not place additional requirements on child care providers that are not required by state law. State law requires liability insurance in the amount of $300,000 per occurrence only for licensed child care centers. TDFPS is the agency responsible for regulating the child care industry and thereby enforces the licensing requirements for that industry.

Boards do not have the authority to regulate or license child care providers in any way, including requiring that providers maintain or obtain liability insurance. The Boards' role is to ensure that providers that are required to meet the state's licensing requirements are in good standing with TDFPS. Boards are responsible for ensuring that parent choice is the basic foundation upon which the services are delivered. To that end, Boards' contractors may inform parents of the state's licensing requirements so parents can make informed decisions when selecting a child care provider as part of the required consumer education.

Other than consumer education, the Commission intends that no funds be expended on regulatory activities relating to the licensing or monitoring of child care providers, as that is the express statutory authority of TDFPS and not an appropriate use of funds by a Board or a Board's contractor. Boards must ensure that they and their contractors do not create the appearance of regulating child care providers. The Boards should take steps to ensure that parents are not under the impression that child care providers with agreements are "approved" or otherwise "regulated" by the Boards or contractors, as this would be contrary to the statutory division of authority between the TDFPS and the Commission intended by the Legislature.

Information obtained from the National Child Care Information Center (NCCIC) reveals that 26 states do not require liability insurance for licensed child care centers. For the 24 states that do require liability insurance for licensed child care centers, the average amount required is $300,000 per occurrence. Of the 50 states, 41 do not require liability insurance for licensed or registered child care homes. Six of those 41 states do require transportation insurance if a provider transports children in care.

Section 809.44(a) specifies that Boards may not require licensed child care centers to have insurance limits or requirements in excess of the state licensing standards.

Section 809.44(b) ensures that licensed child care centers that are required by TDFPS to have liability insurance, but are unable to obtain insurance or have exhausted their liability limits, must notify TDFPS, the parents and the Board that they do not have liability insurance. However, they must remain eligible to receive child care subsidies as long as they remain licensed by TDFPS.

Finally, §809.44(c) prohibits Boards from requiring liability insurance for licensed or registered child care homes that are not required by the state to have liability insurance.

§809.46. Assessing and Collecting Parent's Share of Cost Share.

The Commission changes §809.46(a) by removing the obsolete paragraph (4). Prior to September 3, 2001, the rules stated that parents or caretakers receiving TANF or SSI were exempt from the parent's share of cost. That exemption was amended effective September 3, 2001 to include only parents who are participating in TANF Choices employment services. The obsolete §809.46(a)(4) was part of the old rules intended to clarify that the parent's share of cost was not waived if the child was the only family member receiving TANF or SSI. This provision became obsolete in September 3, 2001 when the exemption for SSI recipients was repealed.

Repeal of §809.61, Qualifications to Provide Self-Arranged Care and §809.62, Reimbursement for Self-Arranged Care; Addition of §809.61, Qualifications to Provide Unregulated Relative Care, §809.62, Qualifications to Provide Regulated Self-Arranged Care, and §809.63, Reimbursement for Self-Arranged Child Care.

The Commission adopts rules to distinguish clearly between regulated self-arranged care and unregulated relative self-arranged care. The Commission makes this change in order to clearly specify that relative care is the only unregulated child care provided by the state. The Commission repeals the previous §809.61, Qualifications to Provide Self-Arranged Care. The Commission establishes a new §809.61, Qualifications to Provide Unregulated Relative Self-Arranged Care. The provisions relating to regulated self-arranged care are included in a new §809.62, Qualifications to Provide Regulated Self-Arranged Care. The previous §809.62, Reimbursement for Self-Arranged Care is now §809.63.

§809.72. General Parent Rights.

The Commission amends §809.72 to add paragraph (6) regarding the notification of termination of child care in order to comply with SB 280 enacted by the 78th Texas Legislature, Regular Session. Section 809.72(6) applies only to parents terminated from at-risk child care in order to make room for mandatory state priority groups. Section 809.72(5) requiring written notification by the Board's contractor at least 15 days before the denial, delay, reduction, or termination of child care remains in effect for all other care.

The intent of SB 280 is to require a 30-day notification to parents whose child care is terminated, denied or reduced to make room for priority groups. The only exceptions provided by SB 280 are if the 30-day notice would interfere with the ability of the Board to comply with its duties regarding the number of children served or would require the expenditure of funds in excess of the amount allocated to the Board. Under these circumstances the notice may be provided on the earliest date on which it is practicable for the Board. SB 280 also requires that the written notification include information regarding other child care services for which the recipient may be eligible.

The Commission adds §809.72(5)(C) that allows the exceptions to the 30-day notification as stipulated by SB 280. The Commission also adds §809.72(6) to require that the written notification include information regarding other child care services for which the recipient may be eligible.

§809.78. Parent Responsibility Agreement.

The Commission changes §809.78(b)(1) in order to define more clearly how parents must show cooperation with the Office of the Attorney General (OAG), if necessary, to establish paternity and to enforce child support as required by the Parent Responsibility Agreement (PRA).

Commission staff contacted the Texas Department of Human Services (TDHS) to determine how that agency defines this section of the Personal Responsibility Agreement signed by TANF recipients. The rule change aligns child care rules with the TDHS definition regarding this section of the PRA.

The new language stipulates that the parent must show cooperation with the Office of the Attorney General on an ongoing basis by: providing information about and helping to locate the absent parent; helping to establish paternity; and appearing in court hearings or other meetings to establish child support.

The Commission also changes §809.78(b)(3) in order to correct the reference to the citation in the Education Code regarding exemption from school attendance as required by the PRA. The previous rule cites §21.003 of the Education Code; however, the correct citation is §25.086.

§809.79. Parent Responsibility Agreement, Sanctions and Exceptions.

The Commission changes §809.79 in order to strengthen the sanctions a Board may impose for non-compliance with the Parent Responsibility Agreement (PRA). The previous rule provided that Boards may impose a sanction of an additional parent co-pay of $25 per month for every month of non-compliance with the PRA. Boards have voiced a concern that the additional $25 per month is inconsequential to the parents and is insufficient as an incentive for compliance with the PRA.

The Commission addresses this concern by adopting §809.79(a)(2) to require the Boards to establish a sanction policy that includes the option of terminating the family's child care for non-compliance with the PRA.

§809.92. General Eligibility Requirements.

The Commission adopts §809.92(b) by changing the word "parents" in the previous rule to "family" in order to remain consistent with the definition of "family" in §809.91(2).

The Commission also changes §809.92(b)(1) in order to state specifically that the Boards determine income eligibility limits. The Boards, however, shall not set income limits higher than 85 percent of the state median income (SMI) as required by 45 CFR 98.20(a)(2). This change makes the rules consistent with the Commission's intent and the CCDF State Plan. The Commission also makes changes to subsequent references to income limits in §809.121 and §809.122 regarding eligibility for children living at low incomes and children with disabilities to specifically stipulate that the Board sets income limits for these populations provided that the income limit shall not exceed 85 percent of SMI.

§809.93. Calculating Income.

The Commission changes §809.93(a)(8) to clarify that income from Temporary Assistance for Needy Families (TANF) includes payments for both single-parent families and for two-parent families as provided in Chapters 31 and 34 respectively of the Texas Human Resources Code.

The Commission also changes §809.93(b) by adding paragraph (2) in order to comply with Title 38 United States Code (USC) §1823(c) which states that federal income support for children of Vietnam veterans born with spina bifida and children of women of Vietnam veterans with certain other birth defects shall not be included in determining eligibility and co-payments for federally assisted programs.

The Commission changes §809.93(b) by adding paragraph (3) in order to comply with the Title 20 USC §1087uu that requires the disregard of federal student aid when determining eligibility for programs funded in whole or in part with federal funds. Specifically, the disregard covers federal work-study programs funded by the Economic Opportunity Program, any student financial aid provided by the Bureau of Indian Affairs, and federal student assistance provided by Higher Education Resources and Student Assistance. Other educational loans and grants from state and local sources will still be included in calculating income.

§809.101. Transitional Child Care.

The Commission changes §809.101(a) in order to define transitional child care as care provided to former TANF recipients who: were denied cash assistance and were working at the time their TANF benefits were denied; or have been denied cash assistance due to expiration of time limits within the last 30 days.

When a TANF recipient loses or is denied cash assistance, child care contractor staff uses DHS's SAVERR system to determine that the parent is eligible for transitional child care. There are some instances, however, when a parent may be eligible for transitional child care services but is not coded as transitional in the SAVERR system. It is the intent of the Commission that Boards request parents to provide proof that they are eligible for transitional child care and that the SAVERR system be used only to verify eligibility for parents coded as transitional in that system.

The Commission changes §809.101 to add subsection (b) that specifically gives Boards the authority to set higher income eligibility limits for transitional child care than their initial eligibility limits, provided the limit does not exceed 85 percent of SMI. The Commission makes this addition in order to clarify its intent and reinforce that provision in the CCDF State Plan.

The Commission redesignates §809.101(b) to (c) and modifies it to add a provision from Chapter 31 of the Texas Human Resources Code which stipulates that 18 months of transitional care be provided only to those Choices volunteers who are eligible for a child caretaker exemption.

The Commission redesignates §809.101(c) to (d) and changes it in order to limit transitional child care to four weeks for clients participating in a Choices activity and who are not employed when their TANF cash assistance expires. As a result of this change, the Commission also repeals subsection (d) relating to clients participating in a Choices activity when their TANF cash assistance expires.

§809.121, Children Living at Low Incomes and §809.122, Children with Disabilities

The Commission changes §809.121 and §809.122 by adding §809.121(a)(2) and §809.122(b)(2) to establish a minimum of 25 hours per week for a single-parent family and 50 hours per week for a two-parent family that parents must work or participate in training or education activities in order to receive at-risk child care services, or for child care services provided to children with disabilities. Boards, however, may set a higher number of required hours per week.

The Commission recognizes that family circumstances may dictate that exceptions be made to the minimum activity requirements. The Commission adds §809.121(a)(5) and §809.122(b)(3) to allow Boards to reduce the minimum required activity hours per week if the parent's documented medical disability or the parent's need to care for a physically or mentally disabled family member prevents them from participating for the required weekly activity hours.

The Commission adds §809.121(b) and §809.122(c) to provide that each credit hour of postsecondary education count as three hours of education activity to be applied toward the education activity hours required in §809.121(a)(2) and §809.122(b)(2) respectively.

The Commission believes that requiring parents of children living at low incomes, including parents with children with disabilities, to participate in work or education activities will assist these families in becoming self-sufficient. A recent study by the Heritage Foundation found that if low-income, working families increase the number of hours they work each year from the current 700 to 2000 hours there would be an 80 percent reduction in child poverty. The Foundation concluded that policies that encourage work should be included in any poverty-reducing strategy.

§809.122. Children with Disabilities.

The Commission redesignates §809.122(c) to (d) and changes it in order to clarify rule language regarding the age eligibility for a child with disabilities. Previous language stated that Boards may extend child care services to children with disabilities who are "between the ages of 13 and 19." Previous rule language could have been interpreted to mean that services can be provided to 19-year-olds. The federal child care regulations in §98.20(a)(ii) allow child care services to children with disabilities who are under 19 years of age. The Commission changes the language to make it clear that 19-year-olds are not eligible for child care services.

§809.123. Children of Teen Parents.

The Commission changes §809.123(b)(2) to clarify that Boards have the authority to set higher income eligibility limits for children of teen parents than the Board's basic eligibility limits, provided the limit does not exceed 85 percent of SMI. The Commission makes this addition in order to clarify its intent and reinforce that provision in the CCDF State Plan.

The Commission changes §809.123(c)(2) in order to clarify when the income of a grandparent must be included in determining income eligibility for a teen parent's child. Previous rule language stated that if a teen parent "is, or has been, married" then the child's grandparent's income is not included in the income eligibility calculation. Section 809.123(c)(2)(B) was intended to apply only to teen parents not living with their parents. However, some Boards interpreted it to apply to teen parents residing with their parents. The Commission removes §809.123(c)(2)(B) to clarify that the gross income of the teen's parent(s) is excluded only if the teen does not reside in the same home as the teen's parent(s). The rule change also clarifies that any monetary amount given to the teen parent by his or her parent(s) who are not residing with the teen parent, must be included in calculating the teen parent's income eligibility.

§809.225. Continuity of Care.

The Commission changes §809.225(a) to clarify that families whose transitional child care has expired should be placed in at-risk care, if they remain eligible for child care services. In some workforce areas, families whose transitional child care benefits have expired are not rolled into at-risk child care, but put on a waiting list for child care services. That is not the intent of the continuity of care rule. In order to comply with the continuity of care principle, when the family's transitional child care has expired the children should remain in child care if the family continues to meet the Board's eligibility criteria.

§809.226. Provider Payments.

The Commission changes §809.226 by removing the obsolete reference to a "master contract" with Boards. The "master contract" referenced in the previous rule is now called an "Agency-Board" agreement.

§809.231. Provider Reimbursement Rates.

The Commission changes §809.231 by adding new subsections (b) and (c) and relettering subsequent subsections.

The Commission adds §809.231(b) in order to establish Commission expectations that Boards not reimburse any provider more than the individual Board's maximum rate or the provider's published rate, whichever is lower. There is no provision in the CCDF federal regulations (45 CFR, Parts 98 and 99) to prohibit a state (or Board) from reimbursing providers at a rate that is higher than the Board's maximum rate. However, the Preamble to the federal CCDF regulations does remind the states of the "...general principle that federal subsidy funds cannot pay more for services than is charged to the general public for the same service."

It is the Commission's expectation that the Boards will adhere to the guidance in the Preamble of the federal CCDF regulations, and that Boards will reimburse providers at the lower of the Board's maximum reimbursement rate or the provider's published rate. That is the current practice among the Boards. However, there is no current rule in place to reinforce that expectation.

The Commission adds §809.231(c) to require Boards to establish the same maximum rate within each category of care for all regulated providers even if the provider is self-arranged by the parent and does not have a signed agreement with the Board.

Currently, Boards are using three approaches to setting the maximum reimbursement rates for the three categories of providers. Eight Boards reimburse regulated, self-arranged providers at the same rate as regulated providers with signed agreements while unregulated, relative providers are reimbursed at a lower rate. Eleven Boards reimburse all self-arranged providers (regulated facilities and unregulated relatives) at the same lower rate than paid to regulated providers with signed agreements. Nine Boards have three sets of maximum rates for each facility type and age group: one rate for providers with agreements; a lower rate for regulated, self-arranged providers; and an even lower rate for unregulated, relative care.

The Commission understands why Boards would reimburse unregulated, relative providers, who are not required by the state to maintain health and safety standards, at a lower rate than regulated providers who do have to maintain such standards. The Commission, however, believes that the practice of reimbursing regulated providers at different rates simply because the provider has an agreement with the Board limits parental choice, since many providers without an agreement may refuse to accept CCDF subsidized children because they will be reimbursed at a lower rate than regulated providers with agreements.

§809.271. Child Care During Appeal.

The Commission changes §809.271(b) regarding continuing child care during the appeal process in order to address concerns raised by Boards regarding the cost of paying for such care. Specifically, the Commission adds paragraph (8) to stipulate that child care services shall not be provided during the appeal process if child care was terminated, reduced, denied or delayed due to the parent's failure to report, within 10 days, changes in a family's circumstance that would make the family ineligible for child care services.

The Commission also changes §809.271(b)(4) to clarify that child care services shall not be provided during the appeal process if the child's care was terminated, reduced, denied or delayed due to lack of funding caused by an increase in the number of enrolled children in state and Board priority groups.

§809.283. Corrective and Adverse Action.

The Commission changes §809.283(e) in order to clarify the rule citation regarding sanctions that may be imposed on a contractor for failure to comply with the Service Improvement Agreement. The list of possible sanctions is provided in §809.283(a) and (c), not in §809.283(b) as (e) previously stated. The rule language is made more general to refer to all sanctions listed in the section.

Repeal of Subchapter O, Child Care Train Our Teachers (TOT) Award

The Commission repeals the rules regarding the Train Our Teachers (TOT) Award and discontinues the scholarship program based on authority granted in SB 280 enacted by the 78th Legislature, Regular Session.

PART III. COORDINATION OF ACTIVITIES

In the development of these rules for publication and public comment, the Commission sought the involvement of each of Texas' twenty-eight Local Workforce Development Boards. The Commission provided policy concepts to the Boards for consideration and review pursuant to Texas Labor Code §302.064 and the Commission's Resolution Regarding Board Coordination in Policy Development adopted September 24, 2002. Prior and during this rulemaking process, the Commission considered the Boards' comments. In addition, the Commission held discussions with the Workforce Leadership of Texas (WLT) Policy Committee and the Child Care Network regarding the development and implementation of these rules.

PART IV. PUBLIC COMMENTS AND RESPONSES

Public comments were received from the following: Alamo Workforce Development Board; Concho Valley Workforce Development Board; North Texas Workforce Development Board; Permian Basin Workforce Development Board; State Representative Norma Chavez; Economic Opportunities Advancement Corporation, Advisory Committee for Region XI/Child Care Services; Camino Real Child Care Coalition; YWCA--El Paso; Professional Home Child Care Association; and home child care providers: Lori Arezaz, Veronica Carrillo, Ana Carronch, Delmara Castillo, Maria Garcia, Sanda Garcia, Elvia Holguin, Veronica Ortiz, Lorraine Romero, and Michelle Wyche.

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

§809.44. Provider General Liability Insurance Requirements.

Comment: Twelve commenters agreed with the rule change. (Note: The commenters expressed their opposition to the previous rule allowing Boards the option of requiring liability insurance for home child care providers. Therefore, the commenters support the proposed rule prohibiting Boards from requiring liability insurance for home child care.)

The commenters stated that most of the new TDFPS licensing standards are the same for licensed home and centers. One of the few exceptions is that the law does not require liability insurance or commercial transportation insurance from child care home providers. One of the commenters stated that TDFPS does not require child care homes to have liability insurance, because the agency realizes that insurance is costly for home care providers and TDFPS does not deem the expense necessary for child care homes.

Response: The Commission agrees that child care rules should not allow Boards to set liability insurance requirements in excess of those required by state law. The Commission further agrees that liability insurance is a financial hardship on home-based providers.

Comment: One commenter stated that Boards should be allowed to decide whether liability insurance should be required of registered family home providers. The commenter stated that the cost of the insurance is minimal and is a basic business expense.

Response: The Commission does not agree that liability insurance is a minimal business expense for any child care provider, especially a home care provider. Eleven home care providers submitted comments as part of this solicitation indicating that liability insurance is a major financial burden for them.

Comment: Six commenters opposed the rule change. The commenters stated that requiring liability insurance from providers with agreements protects the Boards and child care contractors from lawsuits. Even though Boards and child care contractors should not be liable for the safety of children, they can and will be sued if a parent perceives them to be liable. If the child care home is not insured, the parent may sue the contractor or the Board.

Response: It may be true that parents can sue any entity that they perceive as liable for the protection of their children. For that reason it is important that Boards and child care contractors take steps to ensure that parents are not under the impression that child care providers with agreements are "approved" or otherwise regulated by the Boards or contractors. The Boards and contractors should not encourage the perception of Board or contractor liability. The Commission believes that by requiring liability insurance from the providers, the Boards and contractors may be encouraging the perception that they are liable for the safety for children in care.

The Texas Legislature provided a clear mandate that only licensed child care centers should be required to have liability insurance. The Legislature also gave TDFPS the statutory authority to ensure compliance with state law. The Boards' roles should not extend any further than ensuring that licensed child care centers are in good standing with TDFPS and informing parents of the providers' liability insurance status as required by §809.14.

Comment: Three commenters stated that requiring liability insurance allows the Boards to ensure or protect the health and safety of children in subsidized care as required in §809.15 of the child care rules.

Response: The Commission does not agree with the premise that having liability insurance ensures the health and safety of children any more than having automobile insurance is an indicator of safe driving. Liability insurance does not make children any safer while in care. Liability insurance may protect the child care provider in case an accident occurs at the provider location; it does not provide health and safety protection for the children in care.

Comment: One commenter contended that several child care rules imply that contractor and Boards are required by the Commission to assume responsibility for the safety of children at contracted sites. Among the rules the commenter cite are §809.13 and §809.15 requiring Boards to provide orientation and training for child care providers in order to ensure parental choice and improve quality, and §809.14 requiring Boards to make a consumer guide available to parents. Furthermore, the commenter cited §809.42 requiring Boards to ensure that the care provided is in compliance with a provider agreement and that the providers are not subject to corrective or adverse action with TDFPS. These activities could imply the contractor is affirming that the child will be safe.

Response: The training referenced in §809.13 is industry-wide and is not restricted to providers accepting subsidized children or providers with agreements. The Commission does not agree that training provided to all child care providers implies that contractors are affirming that children in these facilities will be safe.

Section 809.14(a)(3) requires Boards to provide consumer education and a list of providers with agreements. The section also states that this consumer information should indicate whether the provider has liability insurance or not. Parents can then make their choice of child care provider with this information in mind. Providing information as to whether the provider has insurance does not assume Board or contractor liability.

The Commission agrees that Boards shall ensure that the provisions of the provider agreements are met. However, the only specific requirement of provider agreements listed in the child care rules (§809.43) is that the agreements include notices and terms that detail provider obligations for complying with federal and state statues and regulations and that discrimination is prohibited. Any additional requirements in the agreements, such as liability insurance, are monitored simply because the Board has decided to include them in the agreement. It is the Commission's belief that by requiring liability insurance and monitoring for compliance, Boards are encouraging the perception that they are liable for the safety of the children. The Commission recognizes state law places the monitoring and regulation of the child care industry solely within the purview of TDFPS and that additional monitoring and regulation by the Boards increases the cost of care, and yet duplicates TDFPS' statutorily granted powers. Boards may not require more strenuous insurance requirements than those imposed by state law.

Comment: Two commenters stated that when child care contractors certify that a Texas Rising Star (TRS) provider is providing care that exceeds required state standards, this reflects a representation of quality by the Boards. Therefore, the commenters believe child care rules force contractors and Boards to accept partial liability for the safety of the children in child care.

Response: The Commission disagrees that the certification and monitoring requirements associated with the Texas Rising Star (TRS) provider status imply Board or contractor liability for the safety of the children in care. TRS certification indicates that the provider has attained certain quality criteria; however, these quality criteria do not include having liability insurance.

Comment: Two commenters stated that the new rule would prevent Boards from requiring licensed child care centers from listing the child care contractor as the "additional insured" in the center's liability insurance. If the contractor is not listed, then the responsibility for defending a lawsuit falls to the child care contractor and not the child care center.

Response: The Commission believes that by listing the contractor as the "additional insured," a court could interpret that as accepting liability. The rule language prevents Boards from requiring licensed child care centers from listing the child care contractor as the "additional insured" in the center's liability insurance. This is an added cost to licensed centers and is a requirement that exceeds the state licensing standards. The Commission modified the proposed rule language in order to clarify this point.

Comment: One commenter suggested that if the rule is adopted, then the insurance field and report should be removed from the system.

Response: The Commission does not agree that insurance information should be removed from the system. Some home-based providers may elect to carry liability insurance, and that should be included as information in the consumer guide required in §809.14.

Comment: One commenter pointed out the inconsistency between the rule language in §809.44(a), which gives the Boards the flexibility to determine whether licensed child care centers are required to have liability insurance in order to have an agreement with the Board, and the stated principle in the preamble, which states that only TDFPS can determine the liability insurance requirements for licensed child care centers.

Response: The Commission agrees that the preamble and the proposed rule languages were inconsistent. In order to correct this inconsistency, the Commission revised rule language and deleted the previously proposed subsection (a) that allows the Boards the flexibility to determine if liability insurance will be required of licensed child care centers. Since determining licensing standards is a function of TDFPS, the Boards do not have the flexibility to determine if liability insurance will be required of licensed centers.

Comment: One commenter stated that child care contractors are placing payments for services rendered on hold pending the provider showing proof of liability insurance.

Response: It is the Commission's intent that child care contractors shall not place reimbursements for services rendered on hold pending proof of liability insurance. If the provider is a licensed child care center, the liability insurance requirement is monitored by TDFPS as part of the licensing requirements. The Commission believes that any adverse action due to the lack of liability insurance is the responsibility of TDFPS. Contractors should not withhold payment unless or until TDFPS changes the center's license status. If the provider is a licensed or registered child care home provider, contractors should not withhold payment for lack of insurance since this is not a requirement of TDFPS or state law.

§809.72. General Parent Rights.

Comment: One commenter was concerned that extending child care an extra 15 days would increase child care costs for the Boards.

Response: The Commission appreciates the concerns raised; however, state law requires this rule change. SB 280, enacted by the 78th Texas Legislature, Regular Session, requires that written notification be provided to the recipient at least 30 days before the effective date of the termination.

Comment: One commenter was concerned about extending child care an additional 15 days for a parent who is ineligible for child care.

Response: The Commission believes it was the intent of the Legislature that the 30-day notice apply only to at-risk parents whose child care is terminated to make room for priority groups. The legislative language, however, did not make that distinction. Consequently, the proposed rule language did not make that distinction either. The Commission has clarified the intent of the rule to state that the 30-day notification will apply only to parents whose child care is terminated to make room for priority groups. The current 15-day notification will continue to apply to those determined to be ineligible.

Comment: One commenter was concerned about §809.72(6)(B) requiring Boards to include in the 30-day notification information regarding other child care services for which the recipient may be eligible. The commenter believed that this would be an additional administrative burden on Boards and their contractors, and often there are no other known sources of child care assistance. Parents that formerly received child care assistance may be contacting other organizations that would not be able to help them in the current economic climate.

Response: The Commission appreciates the concerns raised; however, it does not have the authority to amend the proposed rule. Texas law, SB 280, requires the Boards to institute this practice.

§809.78. Parent Responsibility Agreement.

Comment: One commenter expressed concern about how Boards and their contractors can ensure adherence to the rule changes, because Boards do not have the capability to verify compliance with the filing of child support. This is an additional burden on staff and resources and both are stretched at the moment.

Response: The rule amendment serves to clarify what constitutes cooperation and to promote consistent practices regarding the parent's responsibility to the Office of the Attorney General (OAG). The Commission does not intend for the Boards to assume the role of the child support enforcement agency, and thereby verify compliance with the filing of child support. When child support is an issue, it is the parent's responsibility to provide documentation regarding his or her cooperation with the OAG. Boards and their contractors should request documentation regarding cooperation at initial eligibility determination and redetermination periods. If, however, a Board should learn at any time that a parent is not cooperating, the parent will be in violation of the Parent Responsibility Agreement (PRA).

§809.79. Parent Responsibility Agreement, Sanctions and Exceptions.

Comment: One commenter expressed concern that sanctions for non-compliance would be determined locally when the Texas Department of Human Services (TDHS) is responsible for verifying and imposing sanctions for failure to file for child support.

Response: TDHS is responsible for verifying and imposing sanctions for TANF recipients only. Section 809.79 concerns At-Risk and Transitional parents who are not covered by the TANF Personal Responsibility Agreement. The intent of this rule is to provide the Boards with more stringent sanctions for non-compliance with the child care PRA. It is not the intention of the Commission to place greater monitoring responsibilities on the Boards.

§809.101. Transitional Child Care.

Comment: One commenter was concerned that requiring former TANF recipients who were denied cash assistance due to employment and increased earnings to apply for transitional child care within 30 days of the TANF denial date could force parents to enroll in transitional care even if there is no immediate need for child care. For example, there are many after-school child care programs provided free to parents in the commenter's workforce area. A parent who becomes transitional at the end of March and only has until the end of April to apply for transitional child care, but only needs after school assistance which the parent is currently receiving free, would have to decide whether to enroll in the child care program and change the child's provider or leave the child where he or she is and try to find other arrangements for summer care. If the parent elects to enroll in subsidized child care, this would increase the cost of care and take away a slot from another family that needs care.

Response: The Commission appreciates the concern. The Commission has modified rule language to address the issue raised by the commenter. Section 809.101(1) does not have a time limitation for parents who have been denied cash assistance due to employment and increased earnings. Section 809.101(2), on the other hand, sets a 30-day application deadline for those recipients who are denied due to expiration of TANF time limits.

For parents who have become eligible for transitional child care due to increased earnings, §809.101(b) stipulates that they may receive child care for a period of 12 months from the effective TANF denial date regardless of when the former recipient applies for transitional child care. If the recipient is eligible for a TANF child caretaker exemption, child care shall be available for a period of 18 months from the effective TANF denial date.

§809.121, Children Living at Low Incomes and §809.122, Children with Disabilities

Comment: One commenter agreed with setting a minimum number of hours; however, the commenter was concerned that 30 hours may be difficult for many parents to attain. The commenter suggested the requirement be reduced to 25 hours. Many parents have part-time jobs, and these jobs are less than 30 hours per week. In order to meet the requirement, a second part-time job would be required. Also, the commenter was concerned that managing the work schedule for two part-time jobs would be very difficult, especially for jobs with irregular work schedules.

Response: The Commission appreciates the commenter's concerns. After a review of the average hourly work week for the top industries in which parents receiving subsidized child care work, the Commission agrees with the commenter's suggestion to have at-risk parents be engaged in work activities for a minimum of 25 hours per week.

Comment: One commenter questioned how the activity hour requirement would apply to two-parent families.

Response: The Commission appreciates the comment and agrees with clarifying the rule. The Commission has modified rule language to address how the activity-hour requirement is applied in a two-parent family. Section 809.121(a)(2) and §809.122(b)(2) state that parents must participate in a combination of training, education or employment activities for a minimum of 25 hours a week for a single-parent family and 50 hours a week for a two-parent family. This will be consistent with the Commission's policy regarding the responsibility of both parents in a family, and make the provisions similar to the requirements in Choices rules.

Comment: One commenter agreed with the proposed minimum work activity hours, however, it was not clear to the commenter if part-time child care can be offered to families participating in less than the minimum required hours per week.

Response: Parents are required to be working or in education or training activities for a minimum of 25 hours per week for a single-parent family and 50 hours per week for a two-parent family in order to obtain full-time or part-time child care. If the parents need part-time child care and meet the required activity hours, then the parent may access part-time child care.

Comment: One commenter suggested that rule language be clarified to indicate that the required hours may be a combination of work, education or training.

Response: The Commission appreciates the suggestion and agrees to clarify the language to specify that the 25 hours may be any combination of work, education or training.

Comment: One commenter agreed with setting a minimum number of work hours, but had a concern regarding the administrative burden on Boards in tracking the parent's actual work hours.

Response: The Commission does not intend to impose additional monitoring requirements on Boards that they do not already have to meet. The 25-hour work requirements will be handled similarly to the existing eligibility requirements. The Commission does not intend that actual hours would be tracked weekly for every parent. The Commission intends the 25-hour requirement apply to normal "scheduled work hours" as determined at certification and re-certification. The Commission recognizes that holidays and other scheduled leave would reduce the actual hours worked for a particular week. In most cases, the Boards' attendance policy should cover situations in which the parent has scheduled or temporary work reductions.

Comment: One commenter agreed with setting a minimum number of hours, but requested clarification on how to handle situations where parents, through no fault of their own, cannot meet the required activity hours.

Response: Section 809.121 and §809.122 provide that the Board may reduce the required hours if health reasons or care for a disabled child prevents them from attaining the 25-hour requirement. No additional exceptions should be granted.

Comment: One commenter expressed concern about how the activity hours could be tracked in the child care system.

Response: The Commission appreciates the concern and is exploring the need to modify the system to include the number of hours the parent is scheduled to participate in work, education or training activities per week.

Comment: One commenter requested clarification on what activities could be counted toward the training requirement. For example, would going to a workforce center and working on a computer in a lab to learn Word or Excel count as a training activity, or does it have to be in a class where attendance is taken?

Response: The Board may determine the definition of a training activity.

Comment: One commenter requested guidance on how the activity requirement would affect Board polices on continuation of child care for parents who have lost employment for no cause. Many Boards, for example, allow a certain number of days of child care in order for parents to perform job searches. The commenter requested clarification on how these situations should be handled.

Response: The Commission does not intend that the 25-hour work activity would impose additional requirements or impact the current Board polices regarding continuation of care.

Comment: One commenter suggested that it is unfair to place a minimum participation requirement on at-risk eligible parents. These parents are working or going to school in order to be eligible for child care. They are not part of "welfare reform" and they are attempting to be self-sufficient.

Response: The Commission appreciates the concern. The Commission believes that requiring parents of children living at low incomes to participate in a minimum number of work or education activities will assist these families in becoming self-sufficient.

§809.225. Continuity of Care.

Comment: Concerning continuation of child care after the expiration of transitional time limits, one commenter did not have an issue with the rule change; however, the commenter requested that the current application include a feature to track and flag former transitional clients. This system feature would become critical if Boards have to remove children from care in order to make room for a priority client.

Response: The Commission would like to clarify that this is not a rule change. The Commission is amending the language to make the intent more clear. The Commission never intended that eligible parents be exempted from the continuity of care provisions of §809.225(a) when their transitional child care ends. However, once former transitional parents become at-risk parents, they are subject to the same discontinuation of care policy as other at-risk parents. The same criteria for discontinuation apply to former transitional clients as any other at-risk clients. For that reason, there is no need to flag former transitional clients.

§809.231. Provider Reimbursement Rates.

Comment: Two commenters disagreed with §809.231(c) requiring Boards to establish the same maximum rate within each category of care for all regulated providers even if the provider is self-arranged by the parent and does not have a signed agreement with the Board. The commenters stated that providers with agreements have additional administrative and monitoring requirements. The difference in reimbursement is their incentive to meet the additional requirements. One commenter also suggested that this would take away the incentive for providers to sign agreements with the Board, and when this happens, Boards will lose all oversight on the quality of care being provided.

Response: Section 809.231(a) states that Boards shall establish reimbursement rates based on local factors including a market rate survey. The local factors are intended to include costs associated with providing services within the local market area. Local cost factors are applied equally to all providers within a category. The local cost factors should not include the additional monitoring and administrative costs caused by provider agreements. These additional costs and monitoring requirements placed on providers with agreements indicate that Boards are imposing additional requirements on providers in excess of state requirements. The Commission believes these additional monitoring requirements place an unnecessary burden on providers, represent duplication of effort with TDFPS requirements, and also artificially inflates the cost of care.

The additional requirements imposed by the Boards may be a factor in a disproportionate use in Texas of child care centers, and may actually be inhibiting home-based providers from participating in subsidized child care. Parents may not have access to all licensed child care centers, licensed child care homes or registered child care homes, since many providers without an agreement may refuse to accept CCDF children because they will be reimbursed at a lower rate than regulated providers with agreements. The data bear this out. Registered family homes make up 47 percent of all regulated child care facilities in Texas; however, only 16 percent of all regulated providers participating in Commission child care are registered family homes. By contrast, 43 percent of all regulated child care providers in Texas are child care centers; however, 73 percent of regulated providers serving Commission subsidized children are child care centers.

Comment: Two commenters disagreed with the rule stating that this change would eliminate Board flexibility to set rates, which is what §809.231(a) requires them to do. This will eliminate local board decision making, thereby making it harder to serve the needs of the local workforce.

Response: Section 809.231(a) states that Boards shall set reimbursement rates based on local factors, including a market rate survey. The Commission believes that the additional costs associated with provider agreements may not be considered a local cost factor in setting reimbursement rates. The amendment does not eliminate local flexibility since Boards still have the flexibility to set rates for each category of care.

Comment: One commenter expressed concern that this requirement would increase the Board's cost about 15 percent. If the children are Choices referrals, the costs would increase as much as 60 percent. This increased cost will negatively impact the Board's ability to meet the average number of children served.

Response: The Commission has analyzed the fiscal impact of reimbursing all regulated providers at the same rate within each category and has come to a very different conclusion than the commenter. The Commission's analysis found that for FY02, paying all regulated providers (including SACC providers) the same actual average rate as providers with agreements would increase costs by less than two-tenths of one percent. Therefore, the Commission does not agree that this rule change would negatively impact the Board's ability to meet performance measure regarding the average number of children served.

Subchapter A. GENERAL PROVISIONS

40 TAC §809.1

The repeal is adopted in response to and under the authority of the following sections:

Section 301.0015, Texas Labor Code, which provides that the Commission has authority to adopt rules necessary to administer the Commission's policies, including rules necessary for the administration of Title 4, Texas Labor Code, relating to employment services and unemployment;

Section 302.002(d), Texas Labor Code, which authorizes the Commission to adopt, amend or repeal such rules in accordance with Chapter 2001, Government Code as necessary for the proper administration of the Workforce Development Division.

Section 302.021, Texas Labor Code, which provides for the consolidation of job-training, employment, and employment-related educational programs and functions under the authority of the Commission.

Section 44.002, Human Resources Code provides for the Commission promulgating rules to carry out the administrative provisions of the program consistent with federal law and regulations. Chapter 31, and including §31.0035, Human Resources Code provides for transitional child care.

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

Filed with the Office of the Secretary of State on January 9, 2004.

TRD-200400139

John Moore

General Counsel

Texas Workforce Commission

Effective date: January 29, 2004

Proposal publication date: October 31, 2003

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


40 TAC §809.1

The new rule is adopted in response to and under the authority of the following sections:

Section 301.0015, Texas Labor Code, which provides that the Commission has authority to adopt rules necessary to administer the Commission's policies, including rules necessary for the administration of Title 4, Texas Labor Code, relating to employment services and unemployment;

Section 302.002(d), Texas Labor Code, which authorizes the Commission to adopt, amend or repeal such rules in accordance with Chapter 2001, Government Code as necessary for the proper administration of the Workforce Development Division.

Section 302.021, Texas Labor Code, which provides for the consolidation of job-training, employment, and employment-related educational programs and functions under the authority of the Commission.

Section 44.002, Human Resources Code provides for the Commission promulgating rules to carry out the administrative provisions of the program consistent with federal law and regulations. Chapter 31, and including §31.0035, Human Resources Code provides for transitional child care.

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

Filed with the Office of the Secretary of State on January 9, 2004.

TRD-200400151

John Moore

General Counsel

Texas Workforce Commission

Effective date: January 29, 2004

Proposal publication date: October 31, 2003

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


Subchapter B. GENERAL MANAGEMENT REQUIREMENTS

40 TAC §809.20

The repeal is adopted in response to and under the authority of the following sections:

Section 301.0015, Texas Labor Code, which provides that the Commission has authority to adopt rules necessary to administer the Commission's policies, including rules necessary for the administration of Title 4, Texas Labor Code, relating to employment services and unemployment;

Section 302.002(d), Texas Labor Code, which authorizes the Commission to adopt, amend or repeal such rules in accordance with Chapter 2001, Government Code as necessary for the proper administration of the Workforce Development Division.

Section 302.021, Texas Labor Code, which provides for the consolidation of job-training, employment, and employment-related educational programs and functions under the authority of the Commission.

Section 44.002, Human Resources Code provides for the Commission promulgating rules to carry out the administrative provisions of the program consistent with federal law and regulations. Chapter 31, and including §31.0035, Human Resources Code provides for transitional child care.

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

Filed with the Office of the Secretary of State on January 9, 2004.

TRD-200400140

John Moore

General Counsel

Texas Workforce Commission

Effective date: January 29, 2004

Proposal publication date: October 31, 2003

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


Subchapter B. GENERAL MANAGEMENT

40 TAC §809.20

The new rule is adopted in response to and under the authority of the following sections:

Section 301.0015, Texas Labor Code, which provides that the Commission has authority to adopt rules necessary to administer the Commission's policies, including rules necessary for the administration of Title 4, Texas Labor Code, relating to employment services and unemployment;

Section 302.002(d), Texas Labor Code, which authorizes the Commission to adopt, amend or repeal such rules in accordance with Chapter 2001, Government Code as necessary for the proper administration of the Workforce Development Division.

Section 302.021, Texas Labor Code, which provides for the consolidation of job-training, employment, and employment-related educational programs and functions under the authority of the Commission.

Section 44.002, Human Resources Code provides for the Commission promulgating rules to carry out the administrative provisions of the program consistent with federal law and regulations. Chapter 31, and including §31.0035, Human Resources Code provides for transitional child care.

§809.20.Leveraging Local Resources.

(a) Leveraging Local Funds. The Commission encourages Boards to secure local public and private funds for match to the extent possible to leverage all available resources for child care needs in the community.

(1) A Board may secure local funds for match in the form of one or more of the methods in order to leverage (match) against federal funds available through the Commission:

(A) donations of funds from a private entity;

(B) certification of expenditures by a private entity that represent expenditures eligible for federal match and that were not restricted in their use for a specific individual, organization, facility or institution;

(C) transfers of funds from a public entity; or

(D) certifications of expenditures by a public entity that represent expenditures eligible for federal match.

(2) A Board's performance in securing and leveraging local funds for match may make the Board eligible for incentive awards.

(b) Securing Local Funds to Access Federal Matching Funds from the Commission.

(1) A Board shall manage the securing of funds, including the selection of pledged and completed donations, transfers, and certifications that are used by the Board to receive federal matching funds through the Commission.

(2) A Board shall ensure that federal matching funds are maximized by securing local funds for match in an amount that may exceed the amount required to match available federal funds.

(c) Documenting Pledged Donations, Transfers and Certifications. A Board shall maintain written documentation of pledged donations, transfers and certifications that contain, at a minimum, the following:

(1) the signature of the representative of the Board;

(2) the signature of the potential contributor;

(3) the potential contributor's commitment to fulfill the pledge of the donation, transfer or certification by paying or certifying the funds to the Commission for use in a specific workforce area on a set payment or certification schedule;

(4) the Board's commitment to use the donated or transferred funds as requested by the contributor, as long as it is consistent with federal regulations at 45 CFR §98.53; and

(5) sufficient information to determine that the funds will be used in a manner consistent with 45 CFR §98.53.

(d) Submitting Pledged Donations, Transfers and Certifications for Acceptance by the Commission. A Board shall submit pledged donations, transfers, and certifications to the Commission for acceptance.

(e) Completing Donations, Transfers and Certifications.

(1) A Board shall ensure that donations of cash and transfers of funds are paid to the Agency and that certifications are also submitted to the Agency.

(2) Donations and transfers are considered complete to the extent that the funds have been paid to the Agency.

(3) Certifications are considered complete to the extent that a signed written instrument is delivered to the Agency that reflects that the public entity has expended a specific amount of funds on eligible child care services.

(f) Reporting. A Board shall report information relating to pledged and completed donations, transfers and certifications as referenced in subsections (d) and (e) of this section and §800.72 of this title (relating to Reporting Requirements).

(g) Monitoring. A Board shall monitor the funds secured for match and the expenditure of any resulting funds to ensure that expenditures of unmatched federal funds available through the Commission do not exceed an amount that corresponds to the donations, transfers, and certifications that are completed by the end of the program year.

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

Filed with the Office of the Secretary of State on January 9, 2004.

TRD-200400152

John Moore

General Counsel

Texas Workforce Commission

Effective date: January 29, 2004

Proposal publication date: October 31, 2003

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


Subchapter C. REQUIREMENTS TO PROVIDE CHILD CARE

40 TAC §809.44, §809.46

The repeals are adopted in response to and under the authority of the following sections:

Section 301.0015, Texas Labor Code, which provides that the Commission has authority to adopt rules necessary to administer the Commission's policies, including rules necessary for the administration of Title 4, Texas Labor Code, relating to employment services and unemployment;

Section 302.002(d), Texas Labor Code, which authorizes the Commission to adopt, amend or repeal such rules in accordance with Chapter 2001, Government Code as necessary for the proper administration of the Workforce Development Division.

Section 302.021, Texas Labor Code, which provides for the consolidation of job-training, employment, and employment-related educational programs and functions under the authority of the Commission.

Section 44.002, Human Resources Code provides for the Commission promulgating rules to carry out the administrative provisions of the program consistent with federal law and regulations. Chapter 31, and including §31.0035, Human Resources Code provides for transitional child care.

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

Filed with the Office of the Secretary of State on January 9, 2004.

TRD-200400141

John Moore

General Counsel

Texas Workforce Commission

Effective date: January 29, 2004

Proposal publication date: October 31, 2003

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


40 TAC §809.44, §809.46

The new rules are adopted in response to and under the authority of the following sections:

Section 301.0015, Texas Labor Code, which provides that the Commission has authority to adopt rules necessary to administer the Commission's policies, including rules necessary for the administration of Title 4, Texas Labor Code, relating to employment services and unemployment;

Section 302.002(d), Texas Labor Code, which authorizes the Commission to adopt, amend or repeal such rules in accordance with Chapter 2001, Government Code as necessary for the proper administration of the Workforce Development Division.

Section 302.021, Texas Labor Code, which provides for the consolidation of job-training, employment, and employment-related educational programs and functions under the authority of the Commission.

Section 44.002, Human Resources Code provides for the Commission promulgating rules to carry out the administrative provisions of the program consistent with federal law and regulations. Chapter 31, and including §31.0035, Human Resources Code provides for transitional child care.

§809.44.Provider General Liability Insurance Requirements.

(a) Any liability insurance requirements placed on licensed child care centers by the Boards shall not exceed the state licensing requirements stipulated in Chapter 42 of the Texas Human Resources Code.

(b) A licensed child care center provider must notify the Texas Department of Family and Protective Services (TDFPS), the parent, and the Board if the provider is unable to secure the required insurance due to financial reasons or for lack of availability of an underwriter willing to issue a policy, or if the provider's policy limits have been exhausted. The provider shall remain eligible to receive Commission-funded child care subsidies as long as the provider is licensed by the TDFPS.

(c) Boards shall not require liability insurance for providers who are not required by state law to have liability insurance.

§809.46.Assessing and Collecting Parent's Share of Cost.

(a) For child care funds allocated by the Commission pursuant to its allocation rules (Chapter 800, General Administration, Subchapter B, Allocation and Funding, §800.58 of this title (relating to Child Care)), the following shall apply.

(1) A Board shall set a parent's share of cost policy in accordance with the requirements set forth in §809.12 of this chapter (relating to Board Policies and Plans for Child Care Services) that shall assess parent's share of cost in a manner that results in parent's share of cost:

(A) being assessed to all parents or caretakers, except in instances when an exemption under paragraph (2) of this subsection applies;

(B) being based on the family's size and gross monthly income, and may also be based on the number of children in care; and

(C) not exceeding the cost of care.

(2) Parents that are one or more of the following are exempt from paying parent's share of cost:

(A) parents who are participating in Choices;

(B) parents who participate in the Food Stamp Employment and Training; or

(C) parents who have children that are receiving protective services unless the Texas Department of Family and Protective Services assesses parent's share of cost.

(3) Teen parents who live with their parents and who are not covered under exceptions outlined under paragraph (2) of this subsection shall be assessed parent's share of cost. The parent's share of cost is based solely on the teen parent's income.

(b) For child care services funded from sources other than those sources for funds allocated by the Commission for Child Care Services pursuant to its allocation rules, a Board shall set a parent's share of cost policy based on a sliding fee scale that may be the same as or different from the provisions contained in subsection (a) of this section.

(c) Providers shall collect assessed parent's share of cost and subsidies before child care is delivered.

(d) It is the sole responsibility of the provider to collect assessed parent's share of cost and subsidies.

(e) A Board shall establish a policy regarding reimbursement of providers to address consequences for providers in situations when parents fail to pay parent's share of cost and subsidies.

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

Filed with the Office of the Secretary of State on January 9, 2004.

TRD-200400153

John Moore

General Counsel

Texas Workforce Commission

Effective date: January 29, 2004

Proposal publication date: October 31, 2003

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


Subchapter D. SELF-ARRANGED CARE

40 TAC §809.61, §809.62

The repeals are adopted in response to and under the authority of the following sections:

Section 301.0015, Texas Labor Code, which provides that the Commission has authority to adopt rules necessary to administer the Commission's policies, including rules necessary for the administration of Title 4, Texas Labor Code, relating to employment services and unemployment;

Section 302.002(d), Texas Labor Code, which authorizes the Commission to adopt, amend or repeal such rules in accordance with Chapter 2001, Government Code as necessary for the proper administration of the Workforce Development Division.

Section 302.021, Texas Labor Code, which provides for the consolidation of job-training, employment, and employment-related educational programs and functions under the authority of the Commission.

Section 44.002, Human Resources Code provides for the Commission promulgating rules to carry out the administrative provisions of the program consistent with federal law and regulations. Chapter 31, and including §31.0035, Human Resources Code provides for transitional child care.

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

Filed with the Office of the Secretary of State on January 9, 2004.

TRD-200400142

John Moore

General Counsel

Texas Workforce Commission

Effective date: January 29, 2004

Proposal publication date: October 31, 2003

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


40 TAC §§809.61 - 809.63

The new rules are adopted in response to and under the authority of the following sections:

Section 301.0015, Texas Labor Code, which provides that the Commission has authority to adopt rules necessary to administer the Commission's policies, including rules necessary for the administration of Title 4, Texas Labor Code, relating to employment services and unemployment;

Section 302.002(d), Texas Labor Code, which authorizes the Commission to adopt, amend or repeal such rules in accordance with Chapter 2001, Government Code as necessary for the proper administration of the Workforce Development Division.

Section 302.021, Texas Labor Code, which provides for the consolidation of job-training, employment, and employment-related educational programs and functions under the authority of the Commission.

Section 44.002, Human Resources Code provides for the Commission promulgating rules to carry out the administrative provisions of the program consistent with federal law and regulations. Chapter 31, and including §31.0035, Human Resources Code provides for transitional child care.

§809.61.Qualifications to Provide Unregulated Relative Self-Arranged Care.

(a) A relative who is at least 18 years of age and is one of the following is eligible to provide self-arranged care:

(1) the child's grandparent;

(2) the child's great-grandparent;

(3) the child's aunt;

(4) the child's uncle; or

(5) the child's sibling, if the sibling does not reside in the same household as the eligible child.

(b) A relative providing self-arranged care under this section shall not be reimbursed for more children than permitted by the Texas Department of Family and Protective and Regulatory Services' minimum regulatory standards for Registered Child Care Homes. A Board may permit more children to be cared for in self-arranged care situations on a case-by-case basis as determined by the Board.

§809.62.Qualifications to Provide Regulated Self-Arranged Care.

(a) If chosen by the parent, a person or entity who has not signed a Provider Agreement is eligible to provide self-arranged care if the person or entity is:

(1) licensed by the Texas Department of Family and Protective Services; or

(2) registered with the Texas Department of Family and Protective Services; or

(3) listed with the Texas Department of Family and Protective Services; or

(4) licensed by the Texas Department of Health as a youth day camp; or

(5) operated and monitored by the United States military services.

(b) A Board shall ensure that requests made by the Texas Department of Family and Protective Services, for specific providers or persons eligible to provide self-arranged care, are enforced for children in protective services.

(c) Before authorizing a person or entity "listed" with the Texas Department of Family and Protective Services to provide child care, a Board shall ensure that there are in effect, under local law, requirements designated to protect the health and safety of children that are applicable to the persons or entities "listed" with the Texas Department of Family and Protective Services. Boards may choose not to allow "listed" providers as self-arranged providers. Pursuant to federal regulations at 45 Code of Federal Regulations §98.41, the requirements shall include:

(1) the prevention and control of infectious diseases (including immunizations);

(2) building and physical premises safety; and

(3) minimum health and safety training appropriate to the child care setting.

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

Filed with the Office of the Secretary of State on January 9, 2004.

TRD-200400154

John Moore

General Counsel

Texas Workforce Commission

Effective date: January 29, 2004

Proposal publication date: October 31, 2003

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


Subchapter E. PARENT RIGHTS AND RESPONSIBILITIES

40 TAC §§809.72, 809.78, 809.79

The repeals are adopted in response to and under the authority of the following sections:

Section 301.0015, Texas Labor Code, which provides that the Commission has authority to adopt rules necessary to administer the Commission's policies, including rules necessary for the administration of Title 4, Texas Labor Code, relating to employment services and unemployment;

Section 302.002(d), Texas Labor Code, which authorizes the Commission to adopt, amend or repeal such rules in accordance with Chapter 2001, Government Code as necessary for the proper administration of the Workforce Development Division.

Section 302.021, Texas Labor Code, which provides for the consolidation of job-training, employment, and employment-related educational programs and functions under the authority of the Commission.

Section 44.002, Human Resources Code provides for the Commission promulgating rules to carry out the administrative provisions of the program consistent with federal law and regulations. Chapter 31, and including §31.0035, Human Resources Code provides for transitional child care.

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

Filed with the Office of the Secretary of State on January 9, 2004.

TRD-200400143

John Moore

General Counsel

Texas Workforce Commission

Effective date: January 29, 2004

Proposal publication date: October 31, 2003

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


40 TAC §§809.72, 809.78, 809.79

The new rules are adopted in response to and under the authority of the following sections:

Section 301.0015, Texas Labor Code, which provides that the Commission has authority to adopt rules necessary to administer the Commission's policies, including rules necessary for the administration of Title 4, Texas Labor Code, relating to employment services and unemployment;

Section 302.002(d), Texas Labor Code, which authorizes the Commission to adopt, amend or repeal such rules in accordance with Chapter 2001, Government Code as necessary for the proper administration of the Workforce Development Division.

Section 302.021, Texas Labor Code, which provides for the consolidation of job-training, employment, and employment-related educational programs and functions under the authority of the Commission.

Section 44.002, Human Resources Code provides for the Commission promulgating rules to carry out the administrative provisions of the program consistent with federal law and regulations. Chapter 31, and including §31.0035, Human Resources Code provides for transitional child care.

§809.72.General Parent Rights.

Parents have the right to:

(1) have persons represent them when applying for child care;

(2) notification of their eligibility to receive child care within 20 days from the day the Board's contractor receives all necessary documentation required to determine eligibility for child care;

(3) receive child care regardless of race, color, national origin, age, sex, disability, political beliefs, or religion;

(4) have the Board and the Board's contractor treat as confidential information that is used to determine eligibility for child care;

(5) except as provided by paragraph (6) of this section, written notification by the Board's contractor at least 15 days before the denial, delay, reduction, or termination of child care unless the following exceptions apply:

(A) Notification of denial, delay, reduction, or termination in child care is not required when child care is authorized to cease immediately because either the parent is no longer participating in the Choices program; or child care is authorized to end immediately for children in protective services child care;

(B) The Choices program participants and children in protective services child care are notified, of denial, delay, reduction, or termination of child care and the effective date of such actions by the Choices case worker or the Texas Department of Family and Protective Services.

(6) 30-day written notification by the Board's contractor if child care is to be terminated in order to make room for priority groups.

(A) Written notification of denial, delay, reduction or termination shall include information regarding other child care services for which the recipient may be eligible.

(B) If the notice on or before the 30th day before denial, delay, reduction or termination in child care would interfere with the ability of the Board to comply with its duties regarding the number of children served or would require the expenditure of funds in excess of the amount allocated to the Board, notice may be provided on the earliest date on which it is practicable for the Board to provide notice.

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

Filed with the Office of the Secretary of State on January 9, 2004.

TRD-200400155

John Moore

General Counsel

Texas Workforce Commission

Effective date: January 29, 2004

Proposal publication date: October 31, 2003

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


Subchapter F. GENERAL ELIGIBILITY FOR CHILD CARE

40 TAC §809.92, §809.93

The repeals are adopted in response to and under the authority of the following sections:

Section 301.0015, Texas Labor Code, which provides that the Commission has authority to adopt rules necessary to administer the Commission's policies, including rules necessary for the administration of Title 4, Texas Labor Code, relating to employment services and unemployment;

Section 302.002(d), Texas Labor Code, which authorizes the Commission to adopt, amend or repeal such rules in accordance with Chapter 2001, Government Code as necessary for the proper administration of the Workforce Development Division.

Section 302.021, Texas Labor Code, which provides for the consolidation of job-training, employment, and employment-related educational programs and functions under the authority of the Commission.

Section 44.002, Human Resources Code provides for the Commission promulgating rules to carry out the administrative provisions of the program consistent with federal law and regulations. Chapter 31, and including §31.0035, Human Resources Code provides for transitional child care.

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

Filed with the Office of the Secretary of State on January 9, 2004.

TRD-200400144

John Moore

General Counsel

Texas Workforce Commission

Effective date: January 29, 2004

Proposal publication date: October 31, 2003

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


40 TAC §809.92, §809.93

The new rules are adopted in response to and under the authority of the following sections:

Section 301.0015, Texas Labor Code, which provides that the Commission has authority to adopt rules necessary to administer the Commission's policies, including rules necessary for the administration of Title 4, Texas Labor Code, relating to employment services and unemployment;

Section 302.002(d), Texas Labor Code, which authorizes the Commission to adopt, amend or repeal such rules in accordance with Chapter 2001, Government Code as necessary for the proper administration of the Workforce Development Division.

Section 302.021, Texas Labor Code, which provides for the consolidation of job-training, employment, and employment-related educational programs and functions under the authority of the Commission.

Section 44.002, Human Resources Code provides for the Commission promulgating rules to carry out the administrative provisions of the program consistent with federal law and regulations. Chapter 31, and including §31.0035, Human Resources Code provides for transitional child care.

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

Filed with the Office of the Secretary of State on January 9, 2004.

TRD-200400156

John Moore

General Counsel

Texas Workforce Commission

Effective date: January 29, 2004

Proposal publication date: October 31, 2003

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


Subchapter G. CHILD CARE FOR PEOPLE TRANSITIONING OFF PUBLIC ASSISTANCE

40 TAC §809.101

The repeal is adopted in response to and under the authority of the following sections:

Section 301.0015, Texas Labor Code, which provides that the Commission has authority to adopt rules necessary to administer the Commission's policies, including rules necessary for the administration of Title 4, Texas Labor Code, relating to employment services and unemployment;

Section 302.002(d), Texas Labor Code, which authorizes the Commission to adopt, amend or repeal such rules in accordance with Chapter 2001, Government Code as necessary for the proper administration of the Workforce Development Division.

Section 302.021, Texas Labor Code, which provides for the consolidation of job-training, employment, and employment-related educational programs and functions under the authority of the Commission.

Section 44.002, Human Resources Code provides for the Commission promulgating rules to carry out the administrative provisions of the program consistent with federal law and regulations. Chapter 31, and including §31.0035, Human Resources Code provides for transitional child care.

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

Filed with the Office of the Secretary of State on January 9, 2004.

TRD-200400145

John Moore

General Counsel

Texas Workforce Commission

Effective date: January 29, 2004

Proposal publication date: October 31, 2003

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


40 TAC §809.101

The new rule is adopted in response to and under the authority of the following sections:

Section 301.0015, Texas Labor Code, which provides that the Commission has authority to adopt rules necessary to administer the Commission's policies, including rules necessary for the administration of Title 4, Texas Labor Code, relating to employment services and unemployment;

Section 302.002(d), Texas Labor Code, which authorizes the Commission to adopt, amend or repeal such rules in accordance with Chapter 2001, Government Code as necessary for the proper administration of the Workforce Development Division.

Section 302.021, Texas Labor Code, which provides for the consolidation of job-training, employment, and employment-related educational programs and functions under the authority of the Commission.

Section 44.002, Human Resources Code provides for the Commission promulgating rules to carry out the administrative provisions of the program consistent with federal law and regulations. Chapter 31, and including §31.0035, Human Resources Code provides for transitional child care.

§809.101.Transitional Child Care.

(a) A Board shall ensure that transitional child care services will be provided for children of parents who were formerly TANF recipients; and

(1) have been denied temporary cash assistance and were employed at the time cash assistance was denied; or

(2) have been denied temporary cash assistance within 30 days because of expiration of TANF time limits.

(b) Boards may establish a higher income eligibility limit for transitional child care, provided that the higher income limit does not exceed 85% of state median income for a family of the same size.

(c) Transitional child care shall be available for a period of up to 12 months from the effective date of the TANF denial, depending on income eligibility and whether the person is working, except in the case of a TANF recipient who is eligible for a child caretaker exemption and voluntarily participates in the Choices program. For these individuals, transitional child care is available for a period up to 18 months from the effective date of the TANF denial.

(d) TANF recipients who are not employed when temporary cash assistance expires, including recipients who are engaged in a Choices activity except as provided under subsection (e) of this section, shall receive up to 4 weeks of transitional child care in order to allow these individuals to search for work as needed.

(e) TANF recipients who are engaged in a Choices activity, are meeting the requirements of Chapter 811, and are denied temporary cash assistance due to receipt of child support, shall be eligible to receive transitional child care services until the date on which the individual completes the activity, as defined by the Board.

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

Filed with the Office of the Secretary of State on January 9, 2004.

TRD-200400157

John Moore

General Counsel

Texas Workforce Commission

Effective date: January 29, 2004

Proposal publication date: October 31, 2003

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


Subchapter H. CHILDREN OF PARENTS AT RISK OF BECOMING DEPENDENT ON PUBLIC ASSISTANCE

40 TAC §§809.121 - 809.123

The repeals are adopted in response to and under the authority of the following sections:

Section 301.0015, Texas Labor Code, which provides that the Commission has authority to adopt rules necessary to administer the Commission's policies, including rules necessary for the administration of Title 4, Texas Labor Code, relating to employment services and unemployment;

Section 302.002(d), Texas Labor Code, which authorizes the Commission to adopt, amend or repeal such rules in accordance with Chapter 2001, Government Code as necessary for the proper administration of the Workforce Development Division.

Section 302.021, Texas Labor Code, which provides for the consolidation of job-training, employment, and employment-related educational programs and functions under the authority of the Commission.

Section 44.002, Human Resources Code provides for the Commission promulgating rules to carry out the administrative provisions of the program consistent with federal law and regulations. Chapter 31, and including §31.0035, Human Resources Code provides for transitional child care.

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

Filed with the Office of the Secretary of State on January 9, 2004.

TRD-200400146

John Moore

General Counsel

Texas Workforce Commission

Effective date: January 29, 2004

Proposal publication date: October 31, 2003

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


40 TAC §§809.121 - 809.123

The new rules are adopted in response to and under the authority of the following sections:

Section 301.0015, Texas Labor Code, which provides that the Commission has authority to adopt rules necessary to administer the Commission's policies, including rules necessary for the administration of Title 4, Texas Labor Code, relating to employment services and unemployment;

Section 302.002(d), Texas Labor Code, which authorizes the Commission to adopt, amend or repeal such rules in accordance with Chapter 2001, Government Code as necessary for the proper administration of the Workforce Development Division.

Section 302.021, Texas Labor Code, which provides for the consolidation of job-training, employment, and employment-related educational programs and functions under the authority of the Commission.

Section 44.002, Human Resources Code provides for the Commission promulgating rules to carry out the administrative provisions of the program consistent with federal law and regulations. Chapter 31, and including §31.0035, Human Resources Code provides for transitional child care.

§809.121.Children Living at Low Incomes.

(a) Children living at low incomes are eligible for child care if:

(1) the family income does not exceed the income limit established by the local Board; and

(2) child care is required for the child's parents to participate in a combination of training, education or employment activities for a minimum of 25 hours per week for a single-parent family or 50 hours per week for a two-parent family, or a higher number of hours per week as established by a local Board; or

(3) the parents of the children are receiving temporary cash assistance or Supplemental Security Income; and

(4) the parents receiving temporary cash assistance have met the Choices requirements as specified in Chapter 811 of this title, or have been determined by the Board to need child care to comply with those requirements, if the parents are subject to those requirements.

(5) A Board may allow a reduction to the requirement in subsection (a)(2) of this section if a parent's documented medical disability or need to care for a physically or mentally disabled family member prevents the parent from participating in the activities for the required hours per week.

(b) For purposes of meeting the education requirements stipulated in subsection (a)(2) of this section, each credit hour of postsecondary education will count as three hours of education activity per week.

§809.122.Children with Disabilities.

(a) The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. Children with disabilities--Individuals who meet the age requirements set forth in this subchapter and who are mentally or physically incapable of caring for themselves and meet the criteria set forth in this section.

(b) Children with disabilities are eligible for child care if residing with parents:

(1) whose income, after deducting the cost of the child's ongoing medical expenses, does not exceed the income limit established by the local Board; and

(2) child care is required for the child's parents to participate in a combination of training, education or employment activities for a minimum of 25 hours per week for a single-parent family or 50 hours per week for a two-parent family, or a higher number of hours per week as established by a local Board.

(3) A Board may allow a reduction to requirement in subsection (b)(2) of this section if the need to care for a child with disabilities prevents the parent from participating in the activities for the required hours per week.

(c) For purposes of meeting the education requirements stipulated in subsection (b)(2) of this section, each credit hour of postsecondary education will count as three hours of education activity per week.

(d) A Board may elect to extend child care services to children with disabilities who are 13 to 19 years of age, provided that the other provisions in this section are also met.

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

Filed with the Office of the Secretary of State on January 9, 2004.

TRD-200400158

John Moore

General Counsel

Texas Workforce Commission

Effective date: January 29, 2004

Proposal publication date: October 31, 2003

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


Subchapter K. FUNDS MANAGEMENT

40 TAC §§809.225, 809.226, 809.231

The repeals are adopted in response to and under the authority of the following sections:

Section 301.0015, Texas Labor Code, which provides that the Commission has authority to adopt rules necessary to administer the Commission's policies, including rules necessary for the administration of Title 4, Texas Labor Code, relating to employment services and unemployment;

Section 302.002(d), Texas Labor Code, which authorizes the Commission to adopt, amend or repeal such rules in accordance with Chapter 2001, Government Code as necessary for the proper administration of the Workforce Development Division.

Section 302.021, Texas Labor Code, which provides for the consolidation of job-training, employment, and employment-related educational programs and functions under the authority of the Commission.

Section 44.002, Human Resources Code provides for the Commission promulgating rules to carry out the administrative provisions of the program consistent with federal law and regulations. Chapter 31, and including §31.0035, Human Resources Code provides for transitional child care.

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

Filed with the Office of the Secretary of State on January 9, 2004.

TRD-200400147

John Moore

General Counsel

Texas Workforce Commission

Effective date: January 29, 2004

Proposal publication date: October 31, 2003

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


40 TAC §§809.225, 809.226, 809.231

The new rules are adopted in response to and under the authority of the following sections:

Section 301.0015, Texas Labor Code, which provides that the Commission has authority to adopt rules necessary to administer the Commission's policies, including rules necessary for the administration of Title 4, Texas Labor Code, relating to employment services and unemployment;

Section 302.002(d), Texas Labor Code, which authorizes the Commission to adopt, amend or repeal such rules in accordance with Chapter 2001, Government Code as necessary for the proper administration of the Workforce Development Division.

Section 302.021, Texas Labor Code, which provides for the consolidation of job-training, employment, and employment-related educational programs and functions under the authority of the Commission.

Section 44.002, Human Resources Code provides for the Commission promulgating rules to carry out the administrative provisions of the program consistent with federal law and regulations. Chapter 31, and including §31.0035, Human Resources Code provides for transitional child care.

§809.225.Continuity of Care.

(a) General Principle. Enrolled children, including children whose eligibility for transitional child care has expired, shall receive child care as long as the family remains eligible for any available source of Commission-funded child care except as otherwise provided under subsection (b) of this section.

(b) Exceptions. Nothing in this chapter shall be interpreted in a manner as to result in a child being removed from care, except when removal from care is required for child care to be provided to a child of parents eligible for one or more of the following types of priority child care:

(1) Choices Child Care under §809.102 of this Chapter,

(2) Transitional Child Care under §809.101 of this Chapter, or

(3) Workforce Orientation Applicant Child Care under §809.103 of this Chapter.

(c) Former Texas Department of Family and Protective Services (TDFPS) children as referenced in §809.105(b)(1) of this Chapter shall also continue receiving child care funded through the Commission for the period chosen by TDFPS, which shall not exceed six months, so long as it does not result in another child being removed from care.

(d) Former TDFPS children as referenced in §809.105(b)(2) of this Chapter may continue receiving child care funded through the Commission if it does not result in removing another child from care.

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

Filed with the Office of the Secretary of State on January 9, 2004.

TRD-200400159

John Moore

General Counsel

Texas Workforce Commission

Effective date: January 29, 2004

Proposal publication date: October 31, 2003

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


Subchapter M. APPEAL PROCEDURE

40 TAC §809.271

The repeal is adopted in response to and under the authority of the following sections:

Section 301.0015, Texas Labor Code, which provides that the Commission has authority to adopt rules necessary to administer the Commission's policies, including rules necessary for the administration of Title 4, Texas Labor Code, relating to employment services and unemployment;

Section 302.002(d), Texas Labor Code, which authorizes the Commission to adopt, amend or repeal such rules in accordance with Chapter 2001, Government Code as necessary for the proper administration of the Workforce Development Division.

Section 302.021, Texas Labor Code, which provides for the consolidation of job-training, employment, and employment-related educational programs and functions under the authority of the Commission.

Section 44.002, Human Resources Code provides for the Commission promulgating rules to carry out the administrative provisions of the program consistent with federal law and regulations. Chapter 31, and including §31.0035, Human Resources Code provides for transitional child care.

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

Filed with the Office of the Secretary of State on January 9, 2004.

TRD-200400148

John Moore

General Counsel

Texas Workforce Commission

Effective date: January 29, 2004

Proposal publication date: October 31, 2003

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


40 TAC §809.271

The new rule is adopted in response to and under the authority of the following sections:

Section 301.0015, Texas Labor Code, which provides that the Commission has authority to adopt rules necessary to administer the Commission's policies, including rules necessary for the administration of Title 4, Texas Labor Code, relating to employment services and unemployment;

Section 302.002(d), Texas Labor Code, which authorizes the Commission to adopt, amend or repeal such rules in accordance with Chapter 2001, Government Code as necessary for the proper administration of the Workforce Development Division.

Section 302.021, Texas Labor Code, which provides for the consolidation of job-training, employment, and employment-related educational programs and functions under the authority of the Commission.

Section 44.002, Human Resources Code provides for the Commission promulgating rules to carry out the administrative provisions of the program consistent with federal law and regulations. Chapter 31, and including §31.0035, Human Resources Code provides for transitional child care.

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

Filed with the Office of the Secretary of State on January 9, 2004.

TRD-200400160

John Moore

General Counsel

Texas Workforce Commission

Effective date: January 29, 2004

Proposal publication date: October 31, 2003

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


Subchapter N. CORRECTIVE AND ADVERSE ACTION

40 TAC §809.283

The repeal is adopted in response to and under the authority of the following sections:

Section 301.0015, Texas Labor Code, which provides that the Commission has authority to adopt rules necessary to administer the Commission's policies, including rules necessary for the administration of Title 4, Texas Labor Code, relating to employment services and unemployment;

Section 302.002(d), Texas Labor Code, which authorizes the Commission to adopt, amend or repeal such rules in accordance with Chapter 2001, Government Code as necessary for the proper administration of the Workforce Development Division.

Section 302.021, Texas Labor Code, which provides for the consolidation of job-training, employment, and employment-related educational programs and functions under the authority of the Commission.

Section 44.002, Human Resources Code provides for the Commission promulgating rules to carry out the administrative provisions of the program consistent with federal law and regulations. Chapter 31, and including §31.0035, Human Resources Code provides for transitional child care.

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

Filed with the Office of the Secretary of State on January 9, 2004.

TRD-200400149

John Moore

General Counsel

Texas Workforce Commission

Effective date: January 29, 2004

Proposal publication date: October 31, 2003

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


40 TAC §809.283

The new rule is adopted in response to and under the authority of the following sections:

Section 301.0015, Texas Labor Code, which provides that the Commission has authority to adopt rules necessary to administer the Commission's policies, including rules necessary for the administration of Title 4, Texas Labor Code, relating to employment services and unemployment;

Section 302.002(d), Texas Labor Code, which authorizes the Commission to adopt, amend or repeal such rules in accordance with Chapter 2001, Government Code as necessary for the proper administration of the Workforce Development Division.

Section 302.021, Texas Labor Code, which provides for the consolidation of job-training, employment, and employment-related educational programs and functions under the authority of the Commission.

Section 44.002, Human Resources Code provides for the Commission promulgating rules to carry out the administrative provisions of the program consistent with federal law and regulations. Chapter 31, and including §31.0035, Human Resources Code provides for transitional child care.

§809.283.Corrective and Adverse Action.

(a) Corrective and adverse action (corrective action) may include sanctions set forth in Chapter 800, Subchapter E of this title (relating to Sanctions) and may include, but not be limited to, the following:

(1) requirement that the Board's contractor enter into a Service Improvement Agreement (SIA);

(2) suspension, nonrenewal, or termination of the enrollment agreement, Provider Agreement, contract for service delivery, other Board subcontracts, or the Board contract;

(3) temporarily withholding of payments;

(4) nonpayment of costs incurred; and

(5) recoupment of funds.

(b) When determining which corrective actions are appropriate, the following shall be considered:

(1) the scope of the violation;

(2) the severity of the violation;

(3) the compliance history of the person or entity; and

(4) in the case of contractors, the contractor's failure to meet Commission performance standards.

(c) Corrective action may include, but is not limited to, the following:

(1) closing intake;

(2) moving children to another provider facility selected by the parent;

(3) holding provider payments; and

(4) terminating, suspending, or not renewing a Provider Agreement if the Texas Department of Family and Protective Services has cited a provider for serious or continued noncompliance with the minimum licensing standards or placed the provider on some form of corrective or adverse action.

(d) When a Board's contractor or provider violates a contract or agreement, a written SIA may be negotiated between the Commission, Board, Board's contractor, or provider. At the least, the SIA shall include, the following:

(1) the basis for the improvement agreement;

(2) the steps required to reach compliance including, if applicable, technical assistance;

(3) the time limits for implementing the improvements; and

(4) the consequences of noncompliance with the agreement.

(e) Failure to fully comply with the terms of the SIA may result in the imposition of one or more of the sanctions set forth in this section and Chapter 800, Subchapter E of this title (relating to Sanctions).

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

Filed with the Office of the Secretary of State on January 9, 2004.

TRD-200400161

John Moore

General Counsel

Texas Workforce Commission

Effective date: January 29, 2004

Proposal publication date: October 31, 2003

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


Subchapter O. CHILD CARE TRAIN OUR TEACHERS (TOT) AWARD

40 TAC §§809.301 - 809.304, 809.311 - 809.314, 809.331, 809.332

The repeals are adopted in response to and under the authority of the following sections:

Section 301.0015, Texas Labor Code, which provides that the Commission has authority to adopt rules necessary to administer the Commission's policies, including rules necessary for the administration of Title 4, Texas Labor Code, relating to employment services and unemployment;

Section 302.002(d), Texas Labor Code, which authorizes the Commission to adopt, amend or repeal such rules in accordance with Chapter 2001, Government Code as necessary for the proper administration of the Workforce Development Division.

Section 302.021, Texas Labor Code, which provides for the consolidation of job-training, employment, and employment-related educational programs and functions under the authority of the Commission.

Section 44.002, Human Resources Code provides for the Commission promulgating rules to carry out the administrative provisions of the program consistent with federal law and regulations. Chapter 31, and including §31.0035, Human Resources Code provides for transitional child care.

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

Filed with the Office of the Secretary of State on January 9, 2004.

TRD-200400150

John Moore

General Counsel

Texas Workforce Commission

Effective date: January 29, 2004

Proposal publication date: October 31, 2003

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


Chapter 815. UNEMPLOYMENT INSURANCE

Subchapter B. BENEFITS, CLAIMS AND APPEALS

40 TAC §815.16

The Texas Workforce Commission (Commission) adopts the amendment of §815.16, Appeals to Appeal Tribunals from Determinations, to Chapter 815, Unemployment Insurance, Subchapter B, Benefits, Claims and Appeals, with changes to the text as proposed in the August 22, 2003, issue of the Texas Register (28 TexReg 6799).

The adoption document is organized into three parts:

Part I. Purpose and Background.

Part II. Comment Summaries and Responses.

Part III. Amended Rule.

Part I. Purpose and Background.

A. Purpose. Texas Labor Code §212.101, V.T.C.A. authorizes the Commission to establish one or more impartial Appeal Tribunals to hear and decide disputed claims, if the establishment of these Appeal Tribunals is necessary to ensure prompt disposal of cases on appeal; accordingly, Appeal Tribunals were established. The purpose for amending the Rule 816.16 is to implement the provisions of Section 212.106 of the Texas Labor Code. Section 212.106 directs the Commission to develop procedures by which an Appeal Tribunal will conduct unemployment insurance telephone conference hearings.

B. Background: On June 20, 2003, Senate Bill 280 (SB 280), 78th Texas Legislature, Regular Session, was signed into law. SB 280 included Section 7A.02 that amended Chapter 212, Texas Labor Code entitled Dispute Resolution by adding §212.106. Section 212.106 entitled Rules Regarding Hearings Conducted by Telephone Conference , provides that "the Commission, by rule, shall develop procedures to ensure that an Appeal Tribunal make every effort in a hearing conducted by telephone conference under...[the Texas Unemployment Compensation Act] to obtain all relevant facts and evidence from the parties to the appeal." Amendments to Rule 815.16 are being adopted by the Commission. The amendment ensures that the current unemployment insurance rules reflect the requirements set out in §212.106.

In accordance with the requirements of federal law 42 USC §503 and 20 C.F.R. Part 650, the Commission instituted an impartial Appeal Tribunal to adjudicate appeals from initial determinations pertaining to the payment of unemployment insurance benefits to claimants and whether these benefits are charged to base period employer(s). The Commission promulgated rules governing the administration of the unemployment insurance benefits process including procedures for appealing Commission decisions and conducting the hearings. Commission Rule 815.15 defines who is a "Party of Interest" to an appeal. Commission Rule 815.16, addresses relevant aspects of the hearing procedure applicable to telephone hearings and the responsibilities of an Appeal Tribunal. Commission Rule 815.18 provides for general rules for both the Appeal Tribunal and Commission level appeals. Rule 815.19 provides guidance for the conduct of unemployment fraud hearings. Commission Rule 815.32 defines when an appeal will be considered timely.

Coordination Activities. The Commission circulated the proposed rule to the Board chairs, members and executive directors, and the Texas Association of Workforce Boards Policy Committee (formerly known as the Workforce Leadership of Texas (WLT) Policy Committee). The U.S. Department of Labor (DOL) was sent a copy of the proposed rule for comment.

Part II. Comment Summaries and Responses.

The Commission received comments on the rule from the following: State Representative Scott Hochberg and Richard Levy on behalf of the Texas AFL-CIO. The commenters indicated their belief that more instructive language should be included in the proposed rule to ensure that all of the relevant evidence is received in the hearing. A summary of the comments and responses to the comments are as follows.

Comment: State Representative Scott Hochberg, the author of the language in SB 280, commented that he avoided the use of very prescriptive language in the statute to give the Commission some latitude in developing this program. However, he was concerned that the proposed revision did not give the Appeal Tribunals enough guidance. For instance, he suggested that the rule should ensure adequate record development. The rule should provide that the Appeal Tribunal has the responsibility to develop the record adequately to make sure the entire circumstances of the relevant issues involved in the case are discussed. The goal of the proceeding is complete fact-finding, not adherence to specific legal rules of procedure.

Response: The Commission appreciates the avoidance of use of very prescriptive language in the statute. The Commission has adopted hearing rules and maintains manuals including the Appeals Manual, Hearing Officer's Handbook and the Commission's Appeal's and Precedent Manual that describe hearing procedures to be used by the Appeal Tribunal. These documents reflect DOL requirements for fair hearing; they also enumerate the elements necessary for conducting quality hearings that are used in performance reviews of the Appeal Tribunals. DOL's Quality Appraisal requirements place a high level of responsibility on the Appeal Tribunal. Based on these directions, the Commission has the duty to ensure that the Appeal Tribunal adequately develops the hearing record concerning the relevant issues at the hearing. The Commission recognizes that one of the primary purposes of the administrative hearing is to complete fact-finding on the relevant issues in the case, while not maintaining unnecessarily strict levels of formality that precludes the parties from participating in the hearing. The directives from DOL are that these hearings are to be conducted as informal proceedings. These concepts must be balanced with the need to maintain order in the proceeding to ensure all parties have an opportunity to be heard. To reinforce these existing prescriptions, and to provide additional instructive language to ensure that the hearing record is adequately developed by the hearing officer, the Commission is amending Rule 815.16(3)(A) to clearly state that it is the responsibility of the Appeal Tribunal to ensure that all relevant issues are thoroughly explored during the hearing. The amendment also provides that the Appeal Tribunal actively develop the record by asking questions necessary to obtain pertinent facts concerning events related to the issues in the hearing. In addition, the Commission will include language in its Notice of Hearing packet of information to the parties that advises them, in boldface, that the parties should treat the hearing as if it will be the only chance they will receive to explain their side of the situation.

Comment: Richard Levy, on behalf of the Texas AFL-CIO, commented that the proposed rule did not give enough guidance to the Appeal Tribunals, and more instructive language was needed to require the Appeal Tribunal to communicate to the parties the importance of bringing forth any relevant testimony. The rule should have provided that the Appeal Tribunal have the obligation to develop the record to ensure all relevant testimony was in the record. This obligation included attempting to contact potentially available witnesses during the hearing. The Appeal Tribunal should have been given the authority to continue the hearing to another date to obtain the testimony of additional witnesses. The rule should also have provided for the Appeal Tribunal to explain to the parties the relative weight of evidence between firsthand testimony, affidavits, and hearsay.

Response: The Commission refers Mr. Levy to the response to Representative Hochberg. In addition, the current version of the rule at 40 T.A.C. §815.16(4)(A) provides the Appeal Tribunal the authority to continue the hearing to another date to obtain the testimony of relevant witnesses. The Commission believes that the determinations regarding the quality of evidence is not a procedural matter appropriate for rule. Rather, it goes to the issue of the persuasiveness of the evidence, which is judged by the Appeal Tribunal and, subsequently, by the Commissioners. Under certain circumstances, the relative weight given to these types of evidence may vary, therefore, this is a matter best left to the discretion of the Appeal Tribunal who serves as the trier of fact in the proceeding. For these reasons the Commission disagrees with the portion of the comments not addressed by the amendment to the Rule.

Part III. Amended Rule.

The amended rule is adopted under the following sections:

Section 301.0015, Texas Labor Code, which provides that the Commission has the authority to adopt rules necessary to administer the Commission's policies, including rules necessary for the administration of Title 4, Texas Labor Code, relating to employment services and unemployment;

Section 212.101, Texas Labor Code, which provides that the Commission shall establish one or more impartial Appeal Tribunals to hear and decide disputed claims if the establishment of those Appeal Tribunals is necessary to ensure prompt disposal of cases on appeal; and

Section 212.106, Texas Labor Code, which provides that the Commission by rule shall develop procedures to ensure that an Appeal Tribunal makes every effort in a hearing conducted by telephone conference to obtain all relevant facts and evidence from the parties to the appeal.

The adopted new rule affects Texas Labor Code, Title 4.

§815.16.Appeals to Appeal Tribunals from Determinations.

A party of interest may appeal a determination to the appeal tribunal. Appeals shall be in accordance with the terms of this section, §815.15 of this chapter (relating to Parties with Appeal Rights), §815.17 of this chapter (relating to Appeals to the Commission from Decisions), and §815.18 of this chapter (relating to General Rules for Both Appeal Stages). As used in this section and in §815.17 and §815.18, the term "party" includes a person's or individual's representative. In this section, a reference to the term "supervisor of appeals" includes the supervisor's designee.

(1) Presentation of appealed claims.

(A) A party appealing from a determination made by an examiner under the provisions of the Act, shall file an appeal by hand delivery, mail, common carrier, facsimile (fax) transmission, or other method approved by the Agency in writing. A written appeal that is sent to the Agency should be addressed to the Texas Workforce Commission, 101 East 15th Street, Austin, Texas, 78778-0001, or faxed to the number provided in the determination. A written appeal may be hand delivered to the Texas Workforce Commission, 101 East 15th Street, Austin, Texas 78778-0001, a local office of the Agency, or an agent state, or a workforce center or an office of a Board. The appeal should identify the determination being appealed, the basis for the appeal, the name of the party appealing, and the date of the appeal. The provisions of §815.32 of this chapter (relating to Timeliness) shall determine on what date the appeal was filed.

(B) Upon the scheduling of a hearing on an appeal or a petition to reopen, notice of the hearing shall be mailed to the parties at least five days before the date of the hearing. The notice shall identify the decision or determination appealed from and shall specify the time and date of the hearing, the party appealing, and the issue to be heard. If the hearing is an in-person hearing, the notice shall also specify the location of the hearing.

(2) Disqualification of appeal tribunal. The essence of a fair hearing lies in the impartiality of the appeal tribunal. An appeal tribunal should be free not only of any personal interest or bias in the appeal before it, but also of any reasonable suspicion of personal interest. No appeal tribunal shall participate in the hearing of an appeal in which that tribunal has a personal interest in the outcome of the appeal decision. The appeal tribunal may withdraw from a hearing to avoid the appearance of impropriety or partiality. Challenges to the impartiality of any appeal tribunal may be heard and decided by the supervisor of appeals.

(3) Hearing of appeal.

(A) Consistent with §212.106 of the Act, all hearings shall be conducted informally and in a manner to ensure the substantial rights of the parties. All issues relevant to the appeal shall be considered and ruled upon. The parties to an appeal before an appeal tribunal may present evidence that may be material and relevant as determined by an appeal tribunal. The appeal tribunal shall examine parties and witnesses, if any, and may allow cross-examination to the extent the appeal tribunal deems necessary to afford the parties due process. The appeal tribunal, with or without notice to any of the parties, may take additional evidence that it deems necessary, provided that a party shall be given an opportunity to rebut the evidence if it is to be used against the party's interest.

(i) In conducting a hearing, the appeal tribunal shall actively develop the record on the relevant circumstances leading to the separation for hearings involving the issue of work separation and, for hearings involving other issues, the relevant facts to resolve those issues. It is the responsibility of the appeal tribunal to ensure that all relevant issues are thoroughly explored at the hearing.

(ii) The appeal tribunal shall ask any questions necessary to obtain pertinent facts concerning all events (such as job separation) that are at issue in the hearing.

(B) The parties to an appeal, with the consent of the appeal tribunal, may stipulate in writing the facts involved. The appeal tribunal may decide the appeal on the basis of a stipulation or, in its discretion, may set the appeal for hearing and take any additional evidence it deems necessary to enable it to determine the appeal.

(C) Hearings shall be conducted by telephone conference call unless the supervisor of appeals determines that an in-person hearing is necessary because a party with a physical impairment cannot effectively participate by telephone, because the nature of the evidence to be presented makes a hearing by telephone impractical, or because the supervisor of appeals otherwise determines that an in-person hearing is necessary. The rules and procedures in this chapter govern both in-person and telephone hearings. A party may request an in-person hearing by informally contacting, orally or in writing or by any other reasonable method of communication, the appeal tribunal or the supervisor of appeals before the scheduled time of the hearing and presenting information to support the request. The supervisor of appeals has the discretion to determine whether the party's request for an in-person hearing will be granted.

(4) Adjournment, continuance, and postponement of hearing.

(A) The appeal tribunal shall use its best judgment to determine when to grant a continuance or postponement of a hearing in order to secure all the evidence that is necessary and to be fair to the parties.

(B) Either prior to or during a hearing, an appeal tribunal, on its own motion or on the motion of a party of interest, may continue, adjourn, or postpone a hearing. The continuance, adjournment, or postponement shall not be for the purpose of delaying the proceeding and may be granted due to illness of the appellant, death in the immediate family of the appellant, or a pending criminal prosecution of the appellant. A continuance, adjournment or postponement may also be granted at the request of the appellant or appellee when there is a need for an interpreter, religious observance, jury duty, court appearance, active military duty, or other reasons approved by the supervisor of appeals. Prior to the hearing, requests for a continuance or a postponement of a hearing may be made informally, either orally or in writing, to the appeal tribunal designated to hear the appeal or to the supervisor of appeals.

(5) Reopening of hearing before appeal tribunal.

(A) If a party fails to appear for a hearing, the appeal tribunal may hear and record the evidence of the party present and the witnesses, if any, and shall proceed to decide the appeal on the basis of the record unless there appears to be good reason for continuing the hearing. A copy of the decision shall be promptly mailed to the parties of interest with an explanation of the manner in which, and time within which a request for reopening may be submitted.

(B) A party of interest to the appeal who fails to appear at a hearing may, within 14 days from the date the decision is mailed, petition for a new hearing before the appeal tribunal in the manner set out in subsection (1)(A) of this section. The petition should identify the party requesting the reopening, the applicable decision of the appeal tribunal, the date of the petition, and explain the reason for the failure to appear. The provisions of §815.32 of this chapter (relating to Timeliness) shall determine on what date the petition was filed. The petition shall be granted if it appears to the appeal tribunal that the petitioner has shown good cause for the petitioner's failure to appear at the hearing. In the event that an appeal to the Commission is filed before the filing of the petition for reopening by the appeal tribunal, the appeal shall be referred to the Commission for review.

(C) For purposes of this section, the term "appear" shall mean participation by a party or a party's representative in the proceeding. Actions that may be considered as participation include offering testimony, examining witnesses, or presenting oral argument. If the hearing is a telephone hearing, a party or a party's representative shall appear at a hearing by calling on the date and at the time of the hearing and participating in the hearing proceedings. If the hearing is an in-person hearing, a party or a party's representative shall appear by being at the location of the hearing on the date and at the time scheduled for the hearing and participating in the hearing proceedings. Mere submission of written documents, whether sworn or unsworn, or observation of the proceedings shall not constitute an appearance.

(6) The determination of appeals.

(A) As soon as possible following the conclusion of a hearing of an appeal, the appeal tribunal shall issue its findings of fact and decision with respect to the appeal. The decision shall be in writing and shall reflect the name of the appeal tribunal who conducted the hearing and who rendered the decision. In the decision, the appeal tribunal shall set forth findings of fact and conclusions of law, with respect to the matters on appeal, and the reasons for the decision. Copies of the decision shall be mailed by the appeal tribunal to the parties of interest to the appeal. Upon request, courtesy copies may be mailed to other parties to the appeal.

(B) At any time during the 14-day period from the date a decision on an appeal is mailed, unless a party of interest has already appealed to the Commission, the appeal tribunal or the supervisor of appeals may assume continuing jurisdiction over the appeal for the purpose of reconsidering the issues on appeal and issuing a corrected decision. During the period in which continuing jurisdiction is assumed, the appeal tribunal, after notice to the parties, may take any additional evidence or secure any additional information it deems necessary to issue a decision.

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

Filed with the Office of the Secretary of State on January 6, 2004.

TRD-200400041

John Moore

General Counsel

Texas Workforce Commission

Effective date: January 26, 2004

Proposal publication date: August 22, 2003

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