TITLE 40.SOCIAL SERVICES AND ASSISTANCE

Part 7. TEXAS COUNCIL ON PURCHASING FROM PEOPLE WITH DISABILITIES

Chapter 189. PURCHASES OF PRODUCTS AND SERVICES FROM PEOPLE WITH DISABILITIES

40 TAC §189.6

The Texas Council on Purchasing from People with Disabilities (the Council) adopts amendments to 40 TAC §189.6, concerning Criteria for Recognition and Approval of Community Rehabilitation Programs (CRP) with changes to the text as published in the March 18, 2005, issue of the Texas Register (30 TexReg 1620) and corrected in the April 1, 2005, issue of the Texas Register (30 TexReg 2004).

The amendments set forth the requirements and procedure for the certification of CRPs and establish the requirement for periodic recertification. The amendments include the deletion of subsections (f) - (j) since that language has been relocated for administrative convenience and clarification in new rule §189.13 in Chapter 189, concerning Recognition and Approval of Community Rehabilitation Programs Products and Services. The adopted amendments are new subsections (a) - (i).

The adopted rule is required to fulfill the mandates of SB 261 passed by the 78th Legislature. SB 261, which became effective September 1, 2003, amended §122.003 of the Human Resources Code to require the Council to adopt rules establishing a formal certification process for CRPs.

Subsection (a) of the new rule is amended to allow the Council to accept a CRP which employs persons with disabilities although that function may not be their primary purpose. This change allows a broader class of participants in the program. Subsection (d)(1) specifies the detailed information that must be provided to the central nonprofit agency. Subsection (d)(2) provides for central nonprofit agency's (CNA) review of the submission and forwarding of the completed applications for certification to the Council's Subcommittee on Certification. A CRP whose application is not recommended for approval has the right to protest at the next Certification Subcommittee meeting pursuant to new subsection (d)(2)(C). Subsection (e) provides that a CRP must not be an outlet for an entity whose primary purpose is not the employment of people with disabilities. Subsection (f) allows the Council to recognize a CRP that has a national accreditation or whose services have been approved by a state rehabilitation agency.

The clarification and standardization of the requirements for recognition as a CRP provide guidance to potential program participants that will facilitate Council approval. Further, moving previous subsections (f) - (j) to §189.13 provides a more logical and user-friendly chapter.

On April 1, 2005, the Council published a correction to subsection (d)(2)(B) that distinguishes the function of the Certification Subcommittee as a recommendation and that requires Council approval for eligibility in the state use program.

The public comment period ended April 17, 2005. There were no comments.

Non-substantive changes in punctuation and grammar were made in subsections (a), (d)(2) and (d)(2)(B).

The amendments are adopted under the authority of the Texas Human Resource Code, Title 8, Chapter 122, §122.003 and §122.013.

The following code is affected by these amendments: §122.019 and §122.0215.

§189.6.Criteria for Recognition and Approval of Community Rehabilitation Programs.

(a) A CRP must be a government entity or private nonprofit unincorporated entity which has its own nonprofit status and federal tax identification number and has among its purposes the employment of persons with disabilities to produce products or perform services for compensation, or a private nonprofit incorporated entity with its own federal tax identification number, articles of incorporation and bylaws that establish its existence for the primary purpose of employing persons with disabilities to produce products or perform services for compensation.

(b) A CRP must maintain payroll, human resource functions, accounting and documentation of disability for people employed to produce goods or services under the state use program.

(c) A CRP must maintain contracts and billing and payment records if it contracts with outside entities for services of any kind.

(d) Procedures for Certification

(1) To qualify for participation in the State Use Program under Human Resource Code Chapter 122, an applicant must submit a completed required application and the following documents to the Certification Subcommittee, through the State Use Program's CNA, transmitted by a letter signed by an officer of the corporation, and/or chief administrator for the corporation. Upon receipt, the CNA will verify the completeness and accuracy of each application.

(A) A legible copy of the IRS non-profit determination 501(c) (3) when required by law.

(B) A legible copy of the Certification of Incorporation granted by the Secretary of State when required by law.

(C) A list of each service or product you propose to offer, and the location(s) where it will be produced.

(D) A roster of your board of directors, including names and addresses.

(E) A legible copy of your organizational chart with job title.

(F) A legible copy of your current liability insurance for each location where clients will be served.

(G) Current fire inspection certificate awarded by the city, county, or state fire marshal for each location where clients will be served.

(H) A legible copy of the building inspection certificate or occupancy certificate, if required by city regulation, for each location where clients will be served.

(I) Wage exemption certificate (WH-228), if you will be paying sub-minimum wages to clients.

(J) A CRP must provide a notarized statement that at least seventy-five percent (75%) of the hours of direct labor necessary to perform services or reform raw materials, assemble components, manufacture, prepare, process and/package products will be performed by persons with disabilities.

(2) The CNA will submit all new CRP's completed application and necessary documents to the Certification Subcommittee of the Texas Council on Purchasing from People with Disabilities. The CNA will deliver a copy of the application to the Certification Subcommittee not less than fifteen days prior to the regularly scheduled Certification Subcommittee meeting.

(A) The Certification Subcommittee is composed of three Council members appointed by the presiding officer to review applications of the Community Rehabilitation Programs.

(B) The Certification Subcommittee shall review each application and documentation and, if acceptable, forward the recommendations to the Council for approval. Once approved, the Council will notify the CRP in writing of their approved designation and present each with a certification number. Only the Council can approve eligibility. A CRP shall not participate in the State Use Program prior to the Council's certification.

(C) A CRP may protest a non-approval recommendation at the next scheduled Certification Subcommittee meeting.

(D) To maintain its certification, each CRP must meet the requirements as set forth in this chapter and Chapter 122 of the Human Resources Code. Each CRP must be recertified every three (3) years by the Council. The staff of the Council shall establish a schedule for the recertification process for all CRPs. The CNA shall assist each CRP as necessary to facilitate the recertification of the CRPs.

(e) The organization must not serve, in whole or in part, as an outlet or front for any entity whose primary purpose is not the employment of people with disabilities.

(f) The council may:

(1) recognize a CRP that maintains accreditation by a nationally accepted vocational rehabilitation accrediting organization, and

(2) approve CRP services that have been approved for a purchase by a state habilitation or rehabilitation agency.

(g) The council, at its sole discretion, may review, or have reviewed, any CRP approved to participate in this program to verify that the CRP meets the applicable qualifications contained in this chapter.

(h) Violation of any of the requirements of his chapter, or verified instances of conflict of interest by a CRP may result in suspension of approval or in disapproval of a CRP's eligibility to participate in this program, and/or may result in suspension or disqualification of any product or service.

(i) Neither the council, nor any individual member, the State of Texas, nor any other Texas state agency will be responsible for any loss or losses, financial or otherwise, incurred by any CRP should its product not be approved for the state use program as provided by law.

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 June 17, 2005.

TRD-200502508

Margaret Pfluger

Chairman

Texas Council on Purchasing from People with Disabilities

Effective date: July 7, 2005

Proposal publication date: March 18, 2005

For further information, please call: (512) 463-3244