TITLE 1.ADMINISTRATION

Part 2. TEXAS ETHICS COMMISSION

Chapter 20. REPORTING POLITICAL CONTRIBUTIONS AND EXPENDITURES

Subchapter J. REPORTS BY A CANDIDATE FOR STATE OR COUNTY PARTY CHAIR

1 TAC §20.579

The Texas Ethics Commission proposes an amendment to §20.579, relating to filings by candidates for county chair in certain counties. Section 20.579 currently provides that in counties with a population of 350,000 or more, candidates for county chair of a political party with a nominee on the ballot in the most recent gubernatorial general election, must file pre-election campaign finance reports.

The amendment to §20.579 requires candidates for county chair to file pre-election reports only if they are opposed. The amendment also allows a candidate for county chair to select the modified reporting option that is available to other candidates. The modified reporting option allows a candidate to avoid the requirement to file pre-election reports if the candidate does not accept contributions or make political expenditures (other than expenditures for a filing fee) of more than $500 in the election.

David A. Reisman, Executive Director, has determined that for each year of the first five years the rule is in effect there will be no fiscal implication for the state and no fiscal implication for local government as a result of enforcing or administering the rule as proposed. Mr. Reisman has also determined that this rule will have no local employment impact.

Mr. Reisman has also determined that for each year of the first five years the rule is in effect, the anticipated public benefit will be clarification of the reporting requirements for certain candidates for county chair.

Mr. Reisman has also determined there will be no direct adverse effect on small businesses or micro-businesses because this rule does not apply to single businesses.

Mr. Reisman has further determined that there are no economic costs to persons required to comply with the rule.

The Texas Ethics Commission invites comments on the proposed rule from any member of the public. A written statement should be mailed or delivered to David A. Reisman, Texas Ethics Commission, P.O. Box 12070, Austin, Texas 78711-2070, or by facsimile (FAX) to (512) 463-5777. A person who wants to offer spoken comments to the commission concerning the proposed rule may do so at any commission meeting during the agenda item "Communication to the Commission from the Public" and during the public comment period at a commission meeting when the commission considers final adoption of the proposed rule. Information concerning the date, time, and location of commission meetings is available by telephoning (512) 463-5800 or, toll free, (800) 325-8506.

The amended section is proposed under Government Code, Chapter 571, Section 571.062, which authorizes the commission to adopt rules concerning the laws administered and enforced by the commission.

The proposed amendment to §20.579 affects Election Code, Section 257.005.

§20.579.Candidates for County Chair in Certain Counties.

(a) - (b) (No change.)

(c) In addition to the semiannual reports due to be filed with the commission by January 15 and July 15 under section 20.577(b) of this title, a candidate for county chair covered by this section who has an opponent on the ballot in an election shall file the following two reports with the commission for each primary election except as provided by subsection (d) .

(1) - (2) (No change.)

(d) A candidate who has declared the intention to file reports in accordance with section 20.217 of this title (relating to Modified Reporting) and who remains eligible to file under the modified schedule is not required to file pre-election reports .

(e) In addition to other required reports, a candidate for county chair covered by this section who is in a runoff election shall file one report with the commission for the runoff election. The runoff election report shall be filed not later than the eighth day before runoff election day. The report covers the period beginning the ninth day before the primary election day and continuing through the tenth day before runoff election day.

(f) [ (e) ] Except as provided by Section 254.036(c), Election Code, each report filed with the commission under this section must be filed by computer diskette, modem, or other means of electronic transfer, using computer software provided by the commission or computer software that meets commission specifications for a standard file format.

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

Filed with the Office of the Secretary of State on January 20, 2005.

TRD-200500266

David A Reisman

Executive Director

Texas Ethics Commission

Earliest possible date of adoption: March 6, 2005

For further information, please call: (512) 463-5800


Chapter 40. FINANCIAL DISCLOSURE FOR PUBLIC OFFICERS

1 TAC §40.5

The Texas Ethics Commission proposes new §40.5, relating to information about referrals required to be reported on the personal financial statement filed with the Texas Ethics Commission.

The proposed new §40.5 clarifies Government Code, Section 572.0252, the law requiring information about referrals to be reported by state officers who are attorneys.

David A. Reisman, Executive Director, has determined that for each year of the first five years the rule is in effect there will be no fiscal implication for the state and no fiscal implication for local government as a result of enforcing or administering the rule as proposed. Mr. Reisman has also determined that this rule will have no local employment impact.

Mr. Reisman has also determined that for each year of the first five years the rule is in effect, the anticipated public benefit will be clarification of the reporting requirements for state officers who are subject to the Government Code, Section 572.0252, reporting requirements.

Mr. Reisman has also determined there will be no direct adverse effect on small businesses or micro-businesses because this rule does not apply to single businesses.

Mr. Reisman has further determined that there are no economic costs to persons required to comply with the rule.

The Texas Ethics Commission invites comments on the proposed rule from any member of the public. A written statement should be mailed or delivered to David A. Reisman, Texas Ethics Commission, P.O. Box 12070, Austin, Texas 78711-2070, or by facsimile (FAX) to (512) 463-5777. A person who wants to offer spoken comments to the commission concerning the proposed rule may do so at any commission meeting during the agenda item "Communication to the Commission from the Public" and during the public comment period at a commission meeting when the commission considers final adoption of the proposed rule. Information concerning the date, time, and location of commission meetings is available by telephoning (512) 463-5800 or, toll free, (800) 325-8506.

The new section is proposed under Government Code, Chapter 571, Section 571.062, which authorizes the commission to adopt rules concerning the laws administered and enforced by the commission.

The proposed new §40.5 affects Government Code, Section 572.0252.

§40.5.Referrals.

For purposes of section 572.0252 of the Government Code, a state officer who is an attorney shall report on the financial statement the following:

(1) making a referral for legal services if the state officer was compensated for making the referral. The financial statement shall include the full name of the person to whom the referral was made and the monetary category for the amount received for making the referral; and

(2) receiving a referral for compensation for legal services. The financial statement shall include the full name of the person from whom the referral was received.

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

Filed with the Office of the Secretary of State on January 20, 2005.

TRD-200500267

David A. Reisman

Executive Director

Texas Ethics Commission

Earliest possible date of adoption: March 6, 2005

For further information, please call: (512) 463-5800


Part 12. COMMISSION ON STATE EMERGENCY COMMUNICATIONS

Chapter 255. FINANCE

1 TAC §255.1

The Commission on State Emergency Communications (CSEC) proposes an amendment to §255.1, concerning the statewide equalization surcharge.

This action is proposed as part of Rule Review of Chapter 255, which is being published elsewhere in this issue of Texas Register , pursuant to Government Code, §2001.039.

The rule continues to be essential to the CSEC's operations and per statutory authority.

CSEC proposes to re-adopt the rule with amendments that change the way surcharge amounts are rounded to the next whole cent; and to clarify how the surcharge should be calculated if the provider does not separately bill its customers for intrastate long distance service. The purpose of the rounding amendment is to mirror the approach required by the Texas Tax Code with respect to sales tax. The clarification is necessary to address the situation where a provider does not separately identify on a customer's invoice those charges that are subject to the equalization surcharge.

Paul Mallett, executive director, has determined that for the first five-year period the rule is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rule.

Mr. Mallett also has determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of the amendment will be greater consistency with the Tax Code provisions on rounding and when intrastate long-distance service is not separately billed. While no historical data is available, there appears to be no direct impact on small or large businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed.

Comments on the amendment must be submitted in writing within 30 days after publication of the proposal in the Texas Register to: Paul Mallett, Executive Director, Commission on State Emergency Communications, 333 Guadalupe Street, Suite 2-212, Austin, Texas 78701-3942.

The amendment is proposed pursuant to the Health and Safety Code, Chapter 771, §§771.001(4), 771.051, and 771.072.

No other statutes, articles or codes are affected by the proposed amendment.

§255.1.Statewide Equalization Surcharge.

An equalization surcharge is established in the amount of 6/10 of 1% (0.60%) . Rounding of the surcharge amount shall be in compliance with Texas Tax Code Section 151.053. [ , the amount to be rounded up to the next whole one cent ($0.01) in the case of fractions. ] This surcharge will be assessed to each customer receiving intrastate long-distance service, except those exempted by the Texas Health and Safety Code Section [ § ] 771.074. The surcharge shall be applied to the total amount for intrastate long-distance service charged by the customer's [ long-distance ] service provider, but such amount shall not include taxes charged by local, state, and federal authorities, nor shall local, state, or federal taxes be applied to this surcharge unless otherwise required by law. Texas Tax Code Section 151.025 shall apply when intrastate long distance services are not billed separately on a customer's invoice.

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

Filed with the Office of the Secretary of State on January 24, 2005.

TRD-200500285

Paul Mallett

Executive Director

Commission on State Emergency Communications

Earliest possible date of adoption: March 6, 2005

For further information, please call: (512) 305-6933


1 TAC §255.2

The Commission on State Emergency Communications (CSEC) proposes an amendment to §255.2, concerning the definition of intrastate long distance service.

This action is proposed as part of Rule Review of Chapter 255, which is being published elsewhere in this issue of Texas Register , pursuant to Government Code, §2001.039.

The rule continues to be essential to the CSEC's operations and per statutory authority.

CSEC proposes to re-adopt the rule with two minor clerical corrections: the deletion and the addition of a word. It is noted that staff continues to monitor federal and industry activity that may necessitate further revision of this rule in order to address Internet Protocol services such as Voice over Internet Protocol.

Paul Mallett, executive director, has determined that for the first five-year period the rule is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rule.

Mr. Mallett also has determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of the amendment will be more specificity and clarification on the definition and its application. While no historical data is available, there appears to be no direct impact on small or large businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed.

Comments on the amendment must be submitted in writing within 30 days after publication of the proposal in the Texas Register to: Paul Mallett, Executive Director, Commission on State Emergency Communications, 333 Guadalupe Street, Suite 2-212, Austin, Texas 78701-3942.

The amendment is proposed pursuant to the Health and Safety Code, Chapter 771, §§771.001(4), 771.051, and 771.072.

No other statutes, articles or codes are affected by the proposed amendment.

§255.2.Definition of Intrastate Long-Distance Service.

Intrastate long-distance service means intrastate interexchange electronic or electrical transmission, conveyance, routing, or reception of sounds, signals, data or information utilizing wires, cable, radio waves, microwaves, satellites, fiber optics, or any other methods now in existence or that may be devised. The storage of data or information for subsequent retrieval, or the processing or reception and processing of data or [ the ] information intended to change its form or content are not included in intrastate long-distance service.

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

Filed with the Office of the Secretary of State on January 24, 2005.

TRD-200500286

Paul Mallett

Executive Director

Commission on State Emergency Communications

Earliest possible date of adoption: March 6, 2005

For further information, please call: (512) 305-6933


Part 15. TEXAS HEALTH AND HUMAN SERVICES COMMISSION

Chapter 355. REIMBURSEMENT RATES

Subchapter D. REIMBURSEMENT METHODOLOGY FOR INTERMEDIATE CARE FACILITIES FOR PERSONS WITH MENTAL RETARDATION (ICF/MR)

1 TAC §355.457

The Texas Health and Human Services Commission (HHSC) proposes to amend §355.457, concerning the reimbursement methodology for Intermediate Care Facilities for Persons with Mental Retardation (ICF/MR), in its Reimbursement Rates chapter.

Background and Justification

The purpose of the amendment is to reinstate language, proposed here as §355.457(c)(2) - (3), that was inadvertently deleted from the amended version of the adopted text published in the August 20, 2004, issue of the Texas Register (29 TexReg 8116). The amendment also makes corrections that implement the intent of a previous action. In addition, references to the former Texas Department of Mental Health and Mental Retardation (TDMHMR) were changed to reference the new Texas Department of Aging and Disability Services (DADS) to reflect the restructuring of the Health and Human Services Agencies.

Section-by-Section Summary

HHSC proposes to amend §355.457(c)(2)(B), Fiscal Accountability. The proposal changes reference from TDMHMR to DADS. The proposal also reinstates language inadvertently deleted that relates to the fiscal accountability requirements for providers and the requirements for repayment of funds to DADS when the fiscal accountability requirements are not met.

HHSC proposes to amend §355.457(c)(2)(B) and (C). The proposal changes references from TDMHMR to DADS.

HHSC proposes to amend §355.457(c)(2)(D). The proposal sets forth the repayment requirements for providers whose spending is between 85% and 90% of direct service revenues.

HHSC proposes to amend §355.457(c)(3). The proposal sets forth that the total direct service revenue of the modeled rates is the direct service portion of the rate multiplied by the number of allowable units paid for services provided during the reporting period.

HHSC proposes to amend §355.457(c)(3)(A). The proposal sets forth that providers whose direct service costs are 90% or more of the direct service revenues will not be subject to repayment under this section.

HHSC proposes to amend §355.457(c)(3)(B). The proposal sets forth the repayment requirements for providers whose direct service costs are less than 85% of the direct service revenues.

HHSC proposes to amend §355.457(c)(3)(C). The proposal sets forth the repayment requirements for providers whose direct service costs are between 85% and 90% of the direct service revenues.

Fiscal Note

Tom Suehs, Deputy Executive Commissioner for Financial Services, has determined that during the first five-year period the proposed rule is in effect there will be no fiscal impact to state government. The proposed rule will not result in any fiscal implications for local health and human services agencies. Local governments will not incur additional costs.

Small and Micro-business Impact Analysis

Mr. Suehs has also determined that there will be no effect on small businesses or micro businesses to comply with the amendment as they will not be required to alter their business practices as a result of the rule. There are no anticipated economic costs to persons who are required to comply with the proposed rule. There is no anticipated negative impact on local employment.

Public Benefit

Ed White, Director for Rate Setting and Forecasting, has determined that, for each year of the first five years the section is in effect, the public benefit anticipated as a result of enforcing the section is that the rule language that has been in effect since April 1998 and was inadvertently deleted from the adopted version will be restored. This restoration is necessary to correct this error and to restore the continuity of the accountability aspect of the reimbursement methodology. There is no anticipated economic cost to persons who are required to comply with the proposed section. There is no anticipated effect on local employment in geographic areas affected by the section.

Regulatory Analysis

HHSC has determined that this proposal is not a "major environmental rule" as defined by §2001.0225 of the Texas Government Code. "Major environmental rule" is defined to mean a rule the specific intent of which is to protect the environment or reduce risk to human health from environment exposure and that may adversely affect, in a material way, the economy, a sector of the economy, productivity, competition, jobs, the environment or the public health and safety of a state or a sector of the state. This proposal is not specifically intended to protect the environment or reduce risks to human health from environment exposure.

Takings Impact Assessment

HHSC has determined that this proposal does not restrict or limit an owner's right to his or her property that would otherwise exist in the absence of government action and, therefore, does not constitute a taking under §2007.043 of the Government Code.

Under §2007.003(b) of the Government Code, HHSC has determined that Chapter 2007 of the Government Code does not apply to this rule. The changes this rule makes do not implicate a recognized interest in private real property. Accordingly, HHSC is not required to complete a takings impact assessment regarding this rule.

Public Comment

Written comments on the proposed amendments may be submitted to Gilbert Estrada, Policy Analyst, at the Texas Health and Human Services Commission, Medicaid/CHIP Division, Policy Development Support, P.O. Box 85200-5200, MC - H600, Austin, Texas 78708-5200, by fax to (512) 491-1953, or by e-mail to gilbert.estrada@hhsc.state.tx.us within 30 days of publication of this proposal in the Texas Register .

Public Hearing

A public hearing is scheduled for February 22, 2005, from 1:00 pm to 2:00 pm (central time) at the Health and Human Services Commission, 11209 Metric Blvd., Building H, Austin, Texas 78758. Persons requiring further information, special assistance, or accommodations should contact Gilbert Estrada at (512) 491-1331.

Statutory Authority

The amendment is proposed under the Texas Government Code, §531.033, which provides the Commissioner of HHSC with broad rulemaking authority; the Human Resources Code, §32.021 and the Texas Government Code, §531.021(a), which provide HHSC with the authority to administer the federal medical assistance (Medicaid) program in Texas; and the Texas Government Code, §531.021(b), which provides HHSC with the authority to propose and adopt rules governing the determination of Medicaid reimbursements.

The proposed amendment affects the Human Resources Code, Chapter 32, and the Texas Government Code, Chapter 531. No other statutes, articles, or codes are affected by this proposal.

§355.457.Fiscal Accountability.

(a) General principles. The Texas Health and Human Services Commission (HHSC) applies the general principles of cost determination as specified in §355.101 of this title (relating to introduction). Fiscal accountability is a process used to gauge the ongoing financial performance under the non-state operated facility reimbursement rates.

(b) Annual reporting. Fiscal accountability will consist of the annual reporting of direct service costs from all non-state operated providers. The data will be collected on a cost report designed by HHSC in accordance with §355.105(b) of this title (relating to General Reporting and Documentation Requirements, Methods, and Procedures).

(1) Direct service costs include costs associated with personnel who provide direct hands-on support for consumers and include personnel such as direct care workers, first-level supervisors of direct care staff, QMRPs, registered nurses, and licensed vocational nurses. Direct service costs include: costs related to wage rates, benefits, payroll taxes, contracts for direct services, and direct service supervision information. Accrued leave (sick or annual) can only be considered a direct service cost if the employee has a right to the cash value of that leave upon termination.

(2) The provider is responsible for submission of the fiscal accountability cost report to HHSC, and payment of amounts owed in accordance with subsection (c)[ (3) ] of this section, regardless of whether the provider contracts with another entity for the management or operation of the ICF/MR.

(A) If the provider contracts with another entity for the management or operation of the ICF/MR, the provider must report the specific direct services costs of that entity as required in the cost report instructions and not the amount for which the provider is contracting for the entity's services.

(B) For staff whose duties include work other than the provision of direct services, the proportion of work that is spent on direct services may be included in the direct service costs. The proportion of their salary and benefits that is compensation for direct services work can be included in the direct service cost report. The facility must have a procedure that specifies how direct service work time is allocated.

(C) If the staff providing direct services is an owner, operator, or a related party as defined in §§355.102(i) - 355.103(b)(2) of this title (relating to General Principles of Allowable and Unallowable Costs and Specifications for Allowable and Unallowable Costs), the salary and benefits must be the lesser of the actual wages and benefits paid or the wages and benefits for a comparable staff person assumed in the model. Owner and related party employees who provide both direct care and indirect services must maintain daily time sheets that record the time spent on activities in each area. The provider must maintain documentation relating to compensation, bonuses, and benefits of each owner or related party in accordance with §355.105(b)(2)(B)(xi) of this title (relating to General Reporting and Documentation Requirements, Methods, and Procedures). The maximum hours per fiscal year that an owner and related party employee may report on the cost report is 2080 hours per fiscal year.

(3) The direct service portions of the current rate model are inflated on an annual basis as specified in §355.456(d)(2) of this title (relating to Rate Setting Methodology).

(4) The Department of Aging and Disability Services (DADS) [ TDMHMR ] will place a vendor hold on a prior owner at a change of ownership which results in the execution of a new provider agreement. The prior owner must submit a fiscal accountability report to HHSC for the current reporting period. Upon receipt of an acceptable fiscal accountability report and resolution of any outstanding balances, the vendor hold will be released.

(5) For cost reports pertaining to providers' fiscal years ending in calendar year 2004 and subsequent years the following applies:

(A) Providers must follow the cost-reporting guidelines as specified in §355.105 of this title (relating to General Reporting and Documentation Requirements, Methods, and Procedures).

(B) Providers must follow the guidelines in determining whether a cost is allowable or unallowable as specified in §355.102 and §355.103 of this title (relating to General Principles of Allowable and Unallowable Costs, and Specifications for Allowable and Unallowable Costs).

(C) Revenues must be reported on the cost report in accordance with §355.104 of this title (relating to Revenues).

(6) Field Audit and Desk Review. Desk reviews or field audits are performed on cost reports for all contracted providers. The frequency and nature of the field audits are determined by HHSC to ensure the fiscal integrity of the program. Desk reviews and field audits will be conducted in accordance with §355.106 of this title (relating to Basic Objectives and Criteria for Audit and Desk Review of Cost Reports), and providers will be notified of the results of a desk review or a field audit in accordance with §355.107 of this title (relating to Notification of Exclusions and Adjustments).

(c) HHSC will require providers to report all direct costs incurred in their annual fiscal year. HHSC will compare the reported direct service costs to the direct service cost component of the modeled rates.

(1) Paragraph (2) of this subsection, concerning the fiscal accountability repayment, applies to that portion of the provider's fiscal year that occurs after April 5, 1998. Paragraph (3) of this subsection, concerning the fiscal accountability repayment, applies to that portion of the provider's fiscal year that begins on or after January 1, 1999.

(2) The total direct service revenue of the modeled rates is the direct service portion of the rate multiplied by the number of allowable units paid for services provided during the reporting period.

(A) Providers whose direct service costs are 90% or more of the direct service revenues will not be subject to repayment under this section.

(B) Providers whose direct service costs are less than 80% of the direct service revenues will be required to pay to DADS [ TDMHMR ] the difference between the direct service costs and 95% of the direct service revenues.

(C) Providers whose direct service costs are between 80% and 85% of the direct service revenues will be required to pay to DADS [ TDMHMR ] 100% of the difference between the direct service costs and 85% of the direct service revenues plus 50% of the difference between 85% and 90% of the direct service revenues.

(D) Providers whose direct service costs are between 85% and 90% of the direct service revenues will be required to pay to DADS 50% of the difference between the direct service costs and 90% of the direct service revenues.

(3) The total direct service revenue of the modeled rates is the direct service portion of the rate multiplied by the number of allowable units paid for services provided during the reporting period.

(A) Providers whose direct service costs are 90% or more of the direct service revenues will not be subject to repayment under this section.

(B) Providers whose direct service costs are less than 85% of the direct service revenues will be required to pay to DADS the difference between the direct service costs and 95% of the direct service revenues.

(C) Providers whose direct service costs are between 85% and 90% of the direct service revenues will be required to pay to DADS 75% of the difference between the direct service costs and 90% of the direct service revenues.

(4) [ (3) ] The fiscal accountability calculation shows an estimated amount due for repayment. A provider's repayment status may change as a result of the desk review or onsite audit of the cost report or adjustments to claims paid to the provider for services provided in the cost reporting period. The provider will be notified of the results of the desk reviews or onsite audits in accordance with §355.107 of this title (relating to Notification of Exclusions and Adjustments). If the adjustments and or exclusions result in an amount due, or if the original estimated amount due calculation is upheld, HHSC will notify the provider of the amount due and the provider will remit the repayment amount no later than 60 calendar days after [ of ] the date of the notification was received by the provider.

(5) [ (4) ] Repayment will be collected from the following:

(A) the provider or legal entity submitting the report;

(B) any other legal entity responsible for the debts or liabilities of the submitting entity; or

(C) the legal entity on behalf of which a report is submitted.

(6) [ (5) ] Providers will be jointly and severally liable for any repayment due. Failure to repay the amount due by the 61st calendar day after the provider has received notification may result in a vendor hold on all of the ICF/MR payments to a provider.

(7) [ (6) ] Providers may request an informal review and, if necessary, an administrative hearing to dispute an action taken under §355.110 of this title (relating to Informal Reviews and Formal Appeals).

(d) If a provider is paid a transitional add-on for a consumer in accordance with §355.456(e) of this title, the provider may exclude the amount of the transitional add-on from its fiscal accountability cost report only if the consumer resides in the small non-state operated facility for at least 12 months.

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

Filed with the Office of the Secretary of State on January 24, 2005.

TRD-200500304

Steve Aragón

Chief Counsel

Texas Health and Human Services Commission

Earliest possible date of adoption: March 6, 2005

For further information, please call: (512) 424-6900